Nasdaq 100 futures rose on Friday, buoyed by gains in Oracle shares, as AI-related stocks attempted to regain momentum after recent volatility. As of the latest update, Dow futures edged up 0.03%, S&P 500 futures climbed 0.24%, and Nasdaq futures advanced 0.37%. In Europe, Germany's DAX was flat, the UK's FTSE 100 remained unchanged, France's CAC 40 dipped 0.12%, and the Euro Stoxx 50 fell 0.12%. WTI crude rose 0.36% to $56.20 per barrel, while Brent crude gained 0.27% to $59.98.
In pre-market trading, Oracle surged over 4% after TikTok agreed to sell its U.S. operations to a newly formed joint venture involving the software giant and private equity firm Silver Lake. This rebound follows earlier pressure on Oracle shares due to concerns over a data center project losing a key backer, which also weighed on AI peers like Broadcom and AMD. Year-to-date, Oracle shares are down over 5%.
Among other AI stocks, Nvidia rose about 1% pre-market amid reports that the Trump administration is reviewing its potential exports of advanced AI chips to China. Earlier this month, President Trump indicated approval for Nvidia to ship H200 AI chips to "approved" Chinese customers. Micron Technology extended gains, rising over 1% after reporting strong demand for memory chips and beating Q1 earnings and guidance. These moves suggest AI stocks could end 2025 on a high note.
Nike tumbled 10% after reporting declining revenue in Greater China for Q2 and citing tariff-related margin pressures.
In the prior session, the S&P 500 and Dow snapped four-day losing streaks, while the Nasdaq Composite jumped 1.4%, led by tech rebounds. The rally was fueled by softer-than-expected November CPI data (up 2.7% YoY) and megacap tech strength, though some economists warned of potential data distortions post-government shutdown.
Micron’s bullish guidance on memory chip demand lifted semiconductor stocks, with all "Magnificent Seven" tech giants closing higher. Still, the sector remains ~8% below recent peaks.
Magdalena Ocampo, strategist at Principal Global Investors, noted: "While AI’s payoff timeline is uncertain, 2026’s macro backdrop—easier monetary policy, fiscal support, trade clarity, and AI-driven spending—could broaden equity gains beyond AI leaders to firms with tangible AI applications."
This week, the S&P 500 and Nasdaq each fell 0.8%, while the Dow lost 1%. Friday may see volatility as $7.1 trillion in options expire ("quad witching"), the largest such event on record per Goldman Sachs.
**Valuation Reset Underway** Despite lingering AI valuation concerns, earnings resilience and reduced selling pressure have aided tech’s rebound. With Q3 earnings season winding down, FactSet data shows most S&P 500 firms have seen positive EPS revisions. Consensus forecasts 12.1% profit growth for 2025—marking back-to-back double-digit annual increases. Analysts expect the "Magnificent Seven" to deliver 22% earnings growth in 2025, while the remaining S&P 493 firms are projected to grow 9%. However, "sell-the-news" reactions persist, signaling a market correction rather than AI pessimism.
**JPMorgan’s 2026 Outlook: A "Selective" Bull Market** JPMorgan anticipates a constructive but selective 2026, favoring tech, industrials, and select financials benefiting from transformative trends. Conversely, consumer staples, homebuilders, and some energy stocks may face headwinds. The bank advises focusing on firms with pricing power, growth drivers, and exposure to data center/infrastructure expansion.
**Deutsche Bank Survey: AI Bubble Tops 2026 Risks** A Deutsche Bank poll of 440 asset managers revealed AI/tech bubbles as the top 2026 concern (over 50% of responses), far outpacing Fed policy shifts or private market risks. Notably, geopolitical and pandemic risks ranked low despite recent market impacts.
**Goldman’s Commodity Views: Bullish on Gold & Copper** Goldman forecasts gold rising 14% to $4,900/oz by December 2026, citing central bank demand and Fed rate cuts. Copper is expected to average $11,400/ton under base-case tariff assumptions. Brent and WTI crude may decline to $56 and $52/barrel respectively unless supply disruptions occur.
**Key Stocks:** - Crypto-linked stocks (Bit Digital +6%, Hut 8 +5%) rose as Bitcoin topped $88,000 (+3%). - Oracle +5% on TikTok deal news. - Nike -10% after weak China sales and tariff hits. - Micron +2% on raised price targets post-earnings. - SoFi Technologies +1% entering stablecoin space. - PDD +7.1% on governance restructuring. - XPeng +5% (L3 autonomous driving rollout expected Q1 2026). - Li Auto +3% (reported Silicon Valley AI R&D center plans).
Comments