US stock markets closed higher for the second week in a row last week. The S&P 500 rose by 0.31%, the Dow Jones by 0.5%, and the Nasdaq by 0.91%. Investors were encouraged by positive economic forecasts and growing confidence that the US Federal Reserve will cut the refinancing rate next week.

European stock markets ended the week past with “modest” gains: the pan-European STOXX 600 index rose by 0.4%. The growth was again driven by positive expectations regarding the US market. The weekly increase in European markets was supported by the automotive, technology, and raw materials sectors. Citigroup set a year-end 2026 target of around 640 for the STOXX 600. This target implies an increase of roughly 10.5% from current levels.

On Monday, gold prices rose slightly, reaching around $4,206 per ounce. Investors’ expectations that the US Federal Reserve will cut its refinancing rate this week weakened the dollar, pushing it to its lowest level in a month. A weaker dollar makes gold more affordable for buyers in other countries, and this has contributed to higher demand for gold.

Philips shares fell more than 6% last Thursday, marking the company’s biggest drop since February. The reason was Citigroup’s forecast that the company’s growth may be slower than expected. Citigroup stressed that Philips expects sales growth until 2026, but they are unlikely to be as strong as some analysts had predicted.

Nvidia has acquired a $2 billion stake in Synopsys. The investment will be used to develop artificial intelligence (AI)-powered design tools. Following the announcement of this collaboration, Synopsys shares rose nearly 5%, and Nvidia shares increased by 1.4%.

There is no “bubble” in the AI sector, stated SK Group chairman Chey Tae-won. The South Korean company, which supplies memory chips for Nvidia’s AI systems, saw its stocks rise by 214% last year, supported by high data-center demand and record profits amid the AI boom. Chey Tae-won said that AI companies’ stocks have indeed grown “too fast” and may be subject to market correction, but the long-term investment outlook is fully justified.

India is preparing to impose strict measures on IndiGo after the airline canceled more than 2,000 flights this month due to a shortage of crew, causing significant disruptions in the passenger transport sector. The crisis has raised concerns about IndiGo’s dominance in the civil aviation market and led to a sharp 17% drop in the airline’s shares.

Netflix will acquire Warner Bros Discovery’s television and film studios, as well as its streaming business, for $72 billion. The deal will give the world’s largest streaming platform control over key franchises. This large-scale acquisition will be subject to strict antitrust scrutiny in the US and Europe. After the announcement, Warner Bros Discovery shares rose, while Netflix shares declined slightly.

Among companies with at least $10 billion in market capitalization, the biggest gain last week was recorded by AST SpaceMobile, Inc., a developer of orbital mobile communications technology. The company’s shares rose 31.53% in a week ($73.92 per share). Next was Rubrik, Inc., a cloud services provider specializing in data storage and cybersecurity, with a 24.45% increase ($86.27 per share). This top three was rounded out by Microchip Technology Incorporated, a producer of semiconductors and microchips, with a 22.83% gain ($65.81 per share).

The trio of largest capitalization companies that recorded the biggest losses last week is led by Symbotic Inc., a supplier of warehouse automation and AI logistics systems. Its shares fell 28.73% in one week ($59.70 per share). Next was Pure Storage, Inc., a leader in data-storage systems, with a 20.83% decline ($70.43 per share). This top three was completed by Paramount Skydance Corporation, active in the media and entertainment sector, with a 16.57% drop ($13.37 per share).

Morgan Stanley has revised its forecast and now expects the US Federal Reserve to cut the refinancing rate by 25 basis points in December. Traders also estimate the probability of a rate cut at the December Tuesday-Wednesday meeting at around 87%.

US consumer spending rose by only 0.3% in September, indicating that the country’s economy is losing momentum as high prices and a weaker labor market reduce demand. Inflation remained high: the PCE price index also rose by 0.3% in September and 2.8% year-over-year, driven by higher prices for goods and energy, including tariffs.

According to a survey by the University of Michigan, the US consumer sentiment index improved slightly in early December, reaching 53.3 compared with 51.0 in November. Inflation expectations have eased: consumers expect 4.1% inflation over the next year and 3.2% over the next five years. However, overall assessments remain cautious, as US households continue to feel the pressure of increased costs.

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