In a spirited turn of events on Friday, U.Sstock indices saw significant gains, led by a nearly 1.8% rise in the NasdaqThe tech giants dominated the day’s trading, with Nvidia and Tesla posting impressive increases of 4.5% and a remarkable 8.3%, respectivelyThis surge was a key driver in buoying the broader market, with the consumer discretionary and tech sectors standing out as the top performersConversely, the materials sector lagged behind, showcasing the uneven dynamics at play within the market.

Despite these gains, a closer look reveals ongoing challenges within the U.Smanufacturing sector, which is still grappling with contraction, although there are signs of improvementThe ISM manufacturing PMI for December reached 49.3, representing a nine-month high and surpassing both expectations and previous figuresHowever, caution remains in the air as certain sub-indices within the PMI data raise concerns

The prices paid index came in higher than anticipated, hinting that inflationary pressures may still be a concernAdditionally, the employment index has shown a marked decline, indicating potential headwinds in job growth.

Internationally, the narrative was equally captivatingStarting January 1, tech mogul Elon Musk began a series of posts on social media platform X, lambasting British policies, which understandably drew ire from members of the British Labour PartyMeanwhile, in France, the newly formed government convened its first cabinet meeting to deliberate on the 2025 budget, a vital agenda in uncertain timesIn South Korea, deliberations surrounding the impeachment trial of President Yoon Seok-youl are set to unfold publicly, highlighting the nation's political tensions that have persisted over time.

After enduring five consecutive days of declines, U.Sstocks rebounded sharply, with the major indices escalating their gains to close near their daily peaks

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• Microsoft to Invest $80 Billion in AI
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The Nasdaq, driven by its tech-heavy composition, enjoyed a rise of nearly 1.8%, while the semiconductor index increased by over 2.8%. This upswing was bolstered by widespread gains among technology, semiconductor, and AI stocksNvidia’s shares saw a rise of 4.7%, while Tesla climbed more than 8.2%. Despite these gains, Tesla recorded a nearly 5% drop over the week, and Apple tumbled 4.8%, signaling the end of a six-week streak of increasesAmid a growing demand for AI data centers, nuclear power-related stocks like Constellation and Vistra saw significant rises of 4% and 8.5%, respectivelyNotably, Microsoft announced plans to invest $80 billion in its AI data center capabilities in fiscal year 2025 as investors remain focused on recent climate legislation.

This week, although there was some upward movement, the primary indices concluded the week on a downward trend: the S&P 500 fell by 0.48%, the Dow by 0.6%, and the Nasdaq dropped by 0.51%. The anticipated "Santa Claus rally" did not materialize as investors had hoped.

Exchange-traded funds across various sectors also reflected this fluctuating sentiment

The semiconductor ETF increased by 2.9%, while the consumer discretionary ETF rose by 2.02%. However, the energy sector lagged with a gain of just 0.93%, and the consumer staples ETF experienced a slight decline of 0.05%. Throughout the week, energy sector ETFs posted a 3.44% gain, marking a second consecutive week of rebound, while the global technology stock ETF dipped by 0.51%, highlighting the fragile state of market sentiment.

Investment research strategies have pivoted, with UBS suggesting that the surge in mega-cap tech stocks influenced by the AI boom “seems far from over.” As the spotlight continues to shine on AI-concept stocks, Serve Robotics surged by an eye-catching 28.93%. Stocks linked to Nvidia such as SoundHound AI rose by 2.28%, with other AI-focused companies like BullFrog AI and C3.ai climbing by 5.74% and 6.09%, respectivelyNoteworthy performances were also recorded by CrowdStrike, Dell Technologies, and Palantir, among others, showcasing a robust interest in AI technologies as investors remain bullish in this sector.

Across the Atlantic, European stock markets struggled, with the pan-European STOXX 600 index falling by 0.49%, erasing most gains registered earlier in the week

The French market faced a tougher fate, retreating 1.5%. Sector performance was mixed; the automotive sector fell by 1.79%, while the travel and leisure sectors struggled, decreasing by 1.62%. On a positive note, the financial services sector moved against the tide with modest gains of 0.4%, and the oil and gas sector saw a boost of over 1%.

Meanwhile, U.STreasury yields experienced a collective rise, with the two and ten-year bonds showing increases of over three basis pointsNonetheless, a downward trajectory was evident in yields for the week, particularly with the two-year Treasury yield falling by more than four basis pointsAs the reshuffle in the bond market continues, movements in financial data remain crucial indicators of economic sentiment.

The dollar exhibited strength, causing spot gold to retreat from three-week highs, although it still managed to climb nearly 1% for the week

The ICE dollar index decreased by 0.42%, with the euro and pound both shedding over 1%. Interestingly, the yen made a brief climb towards the 156 mark, while Bitcoin futures surged by 4%, weaving back towards the $100,000 mark.

This week saw WTI crude oil prices rise for five consecutive days, reaching close to $74, hitting a two-month high, with Brent crude oil prices also climbing by around 3%. In contrast, the natural gas futures market experienced some volatility, but ultimately concluded the week with substantial price shifts.

In a more specific overview of commodities, February WTI crude oil futures closed up $0.83, reflecting a rise of more than 1.13% to settle at $73.96 per barrelBrent crude futures also posted positive gains, closing at $76.51 per barrel after climbing by $0.58. Conversely, U.Snatural gas futures dipped by 8.36%, signalling a more complex narrative within energy markets.

As the week wrapped up, gold saw some reverses in price due to the dollar footing higher