United States
US equities finished mixed as buyers stepped back into the market following a sharp bout of risk aversion tied to Oracle’s plans for significant capital expenditure on artificial-intelligence infrastructure. The S&P 500 managed to claw back earlier losses to close 0.2% higher, notching a fresh record and returning toward October’s intraday peak. Blue-chip and small-cap indices also pushed to all-time highs, a notable shift given their long-standing lag behind the tech-heavy benchmarks this year. The Nasdaq 100 pared a 1.6% decline, although sentiment across major technology names remained soft after Oracle’s disappointing earnings update.
Nvidia fell 1.5% as part of broader weakness across the so-called Magnificent Seven, highlighting continued caution toward AI-linked heavyweights. Bitcoin briefly traded below USD 90,000 before recovering part of the drop, while the US dollar edged lower. Traders are now looking to Broadcom’s earnings, due after the close, for further indications on the strength of the AI investment cycle.
Oracle’s update revived ongoing concerns about the sustainability of elevated tech valuations and whether escalating AI-related spending will drive the expected returns. The company reported a sharp rise in outlays on data centres and infrastructure, with revenue growth taking longer than investors had hoped to follow. This reignited the sector-wide volatility seen through November and contributed to continued rotation into non-tech sectors, supported by a still-solid outlook for the broader US economy.
US Treasuries rallied for a second session after the Federal Reserve delivered a quarter-point rate cut and authorised fresh bill purchases aimed at rebuilding bank reserves. Yields briefly drifted lower again after initial jobless claims came in higher than expected, though the move faded late in the New York session, with the 10-year settling around 4.14–4.15%. Fed Chair Jerome Powell reiterated that the central bank had likely done enough to stabilise labour market conditions while keeping policy sufficiently restrictive to dampen inflationary pressures. Officials lifted their median growth projection for 2026, while pencilling in inflation at 2.4% for next year.
Among major corporate developments, Walt Disney agreed to invest USD 1 billion in OpenAI and will license characters from Disney, Marvel, Pixar and Star Wars for the Sora video platform. Eli Lilly’s next-generation obesity drug delivered encouraging clinical results, with patients losing nearly a quarter of their body weight. Coca-Cola announced a CEO transition, and several tech companies, including OpenAI and Microsoft, faced new legal challenges. US equities closed with the Dow up 1.3%, the S&P 500 slightly higher, and the Nasdaq down 0.4%.
Europe
European markets advanced as improving confidence in global growth encouraged buying across economically sensitive sectors. The Stoxx Europe 600 rose 0.5%, supported by strength in construction materials, banks, travel, leisure and mining stocks. More defensive areas such as utilities and real estate slipped, reflecting the renewed preference for cyclical sectors.
Software names underperformed after Oracle’s results weighed on sentiment across the global tech complex, with SAP among the notable laggards. Even so, the Federal Reserve’s latest rate cut and its guidance on the policy outlook helped stabilise nerves around the resilience of the US economy, supporting a more constructive tone in European trading.
The Stoxx 600 now sits less than one per cent away from its November high, with seasonal trends historically favouring a December rally. Over the past five years, the index has averaged a 1.5% gain in December. Among individual movers, Entain fell 2.2% after announcing its CFO and deputy CEO would step down in 2026.
Australia
Australian shares are set to open more than one per cent higher, with ASX 200 futures up 76 points, or 0.9%, to 8667. The anticipated jump follows a mixed session on Wall St, where investors stepped in to buy the dip despite Oracle’s slump dragging the tech sector lower. Dip-buying pushed the S&P 500 back into positive territory while US yields eased further.
The local market finished modestly higher on Thursday, with the S&P/ASX 200 rising 12.6 points, or 0.2%, to 8592. The initial uplift from the Fed rate cut moderated through the day as Oracle’s results pressured technology shares. Nonetheless, miners remained a bright spot, supported by stronger gold prices and ongoing hopes for Chinese stimulus following softer data. BHP rose 1.3% and Rio Tinto 1.8%, while gold miners extended gains amid bullion trading above USD 4,248 an ounce.
The tech sector dragged on the broader index, with WiseTech and Life360 each down more than two per cent. Bitcoin’s drop of more than three per cent added to signs of waning risk appetite in growth-oriented corners of the market.
In corporate news, Flight Centre gained 5.4% after lifting its profit outlook, while Myer surged nearly 10% on a record Black Friday sales period and confirmation that Solomon Lew will join the board next year. James Hardie advanced more than seven per cent on expectations of stronger full-year earnings. Meanwhile, IAG slipped 1.2% after the ACCC blocked its planned acquisition of RAC WA’s insurance arm.
New Zealand manufacturing PMI and retail spending data are due this morning, while NAB holds its AGM.
Commodities and currencies
Commodity markets saw mixed moves overnight. West Texas Intermediate crude fell 1.1% to USD 57.82 a barrel, tracking broader softness across risk assets. Brent eased 1.1% to USD 61.52 a barrel. Gold strengthened 1.1% to USD 4,274.34 an ounce, extending gains in line with its strong performance on the ASX. Silver continued its impressive run, pushing further beyond USD 63 an ounce.
Copper surged to a record high, climbing as much as three per cent in London to USD 11,906 a tonne and surpassing Monday’s peak. Iron ore dipped one per cent to USD 101.75 a tonne.
The Australian dollar traded at 66.71 US cents, marginally lower on the session. The Bloomberg Dollar Spot Index slipped 0.3%, while the euro and yen both strengthened modestly. Bitcoin initially fell 1.7% to USD 90,711 before rebounding to finish 0.7% higher, and Ether dropped 2.7% to USD 3,222.61.
Economic Calendar
No major data
This article was written by Calvin Curdie, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
