Market strategist Julian Emanuel warns that while the AI-driven stock rally may continue into 2026, there are potential risks similar to past financial bubbles, such as excessive cross-shareholding and deteriorating balance sheets among hyperscalers, which could signal systemic issues if certain financial thresholds are crossed. Despite these risks, the overall outlook remains optimistic with a target of 7,750 for the S&P 500 by the end of 2026, but increased volatility is expected.
Asia-Pacific markets mostly rose following gains on Wall Street driven by AI-related trade news, with notable increases in tech stocks like Nvidia and Micron, and mixed performances across regional indices amid upcoming inflation data from Singapore.
On December 19, 2025, major U.S. stock indices including the Dow, S&P 500, and Nasdaq closed higher amid a comeback in AI-related trading, with the S&P 500 achieving a slight weekly gain following a tech rally on Friday.
On December 19, 2025, major U.S. stock indices closed higher amid a resurgence in AI-related trading, with the S&P 500 posting a weekly gain driven by a tech rally. Federal Reserve President John Williams indicated that recent economic data may have been distorted by the government shutdown, but overall, the economy remains in good shape and is expected to improve in 2026. Inflation data from the Bureau of Labor Statistics suggests a slight underestimation of inflation due to data collection issues during the shutdown.
The Dow Jones surpassing 48,000 reflects a market rotation from tech to value stocks, driven by concerns over AI sustainability and profit-taking, with potential implications for the market outlook into 2026 depending on economic data and Federal Reserve actions.
U.S. stock futures remain near flat after a strong market rally driven by optimism over the potential end of the government shutdown and a rebound in AI-related stocks like Nvidia, Alphabet, and Microsoft, with notable after-hours movements in companies like Paramount Skydance and Rocket Lab.
BofA Securities advises investors to consider shorting bonds of hyperscalers like Amazon and Alphabet due to concerns over their cash flow, but recommends caution against shorting the broader AI market.
U.S. stock futures remain steady as investors monitor AI valuations and a potential Supreme Court ruling against tariffs, amid rising October layoffs and strong earnings from AI-related companies like Nvidia and AMD, while some stocks like e.l.f. Beauty decline on weak guidance.
Bitcoin's price drops over 2.5% as investors become risk-averse amid concerns about the sustainability of AI-driven stock valuations, leading to a broader sell-off in cryptocurrencies and related markets, with potential for further declines below $95,000.
Stock futures are largely unchanged as November begins, following a strong October for the S&P 500, Dow, and Nasdaq, driven by AI momentum, positive earnings reports, and easing US-China trade tensions, amid ongoing government shutdown and upcoming economic data releases.
Goldman Sachs CEO David Solomon is optimistic about the markets and economy, predicting a potential stock market drawdown within the next 12-24 months, a continued strong US economy in 2026 driven by fiscal stimulus and infrastructure spending, increased dealmaking, and a typical pattern of winners and losers emerging from technological booms.
Stock futures are flat following a weak week on Wall Street, with concerns about the sustainability of AI growth and Federal Reserve policies impacting investor sentiment. Last week saw declines in major indices, but September shows modest gains, and investors await key economic data to gauge future market direction.
Nvidia stock is on a five-day winning streak, driven by renewed investor confidence in the AI sector and easing geopolitical tensions, with shares up over 60% since April and other chip makers also performing well.
Traders expect Oracle's stock to potentially reach a 2025 high following its upcoming earnings report, with a predicted 7.2% move in either direction, influenced by recent gains driven by AI investments and mixed analyst ratings.
Broadcom's stock is nearing a record high, up nearly 30% in the past month, as investors anticipate strong quarterly earnings and the company launches advanced data center switches, with analysts largely rating the stock as a buy.
