Optimism prevailed on Wall Street as investors hoped that the downward trend in interest rates would persist amid post-election euphoria, and the artificial intelligence-linked stocks-powered rally would extend well into the new year. 

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U.S. major averages advanced in Monday's trading amid fading hopes of a rally in the final five trading sessions. European markets struggled to advance, but indexes in China, India, and Japan closed higher.

Stock market indexes on Wall Street advanced at the start of a holiday-shortened week. In light trading, artificial intelligence technology-linked and mega tech companies led gainers.

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Wall Street indexes resumed selling after investors recalibrated rate outlook and reviewed the looming federal government shutdown that could impact consumer spending.

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Wall Street indexes rebounded but struggled to hold their best levels of the session amid weakening confidence and growing worries about the resurgent inflation. European market indexes closed down more than 1%. Central banks of Sweden and the Philippines cut rates, but Norway, Japan, and the UK held rates steady.

Wall Street indexes rebounded from a sharp fall in the previous session after the Federal Reserve revised its 2025 rate outlook and lowered the overnight rate range by 25 basis points.

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Wall Street indexes traded higher, and investors are anticipating fewer rate cuts in the approaching year amid resurgent inflation and higher tariffs. European markets were flat ahead of the BoE's rate decision and ongoing political turmoil in France and Germany. Japan's trade deficit shrank in November.



The Federal Reserve is struggling to cool inflation as wages and the service sector inflation continue to stay above the Fed's target rate of inflation.

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Wall Street rally is hitting the wall of reality, and investors begin to factor in the negative impact of higher Trump tariffs in keeping inflation elevated, forcing the Fed to keep rates higher for longer.

A five-week market rally begins to fade as fewer stocks participate in the upswing amid growing skepticism about President-elect Trump's tariff plans and the federal government's budget deficit. 

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A rally in tech stocks extended U.S. major averages gains to the fifth consecutive week. Broadcom extended gains of the previous week, driven by optimism about artificial intelligence revenue growth.

Eight central banks around the world are scheduled to announce their rate decisions this week. The U.S. Federal Reserve, the Bank of England, and Riksbank are expected to raise their policy rates, but the Bank of Japan may delay its rate increase till the next policy meeting in January. 

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Wall Street indexes extended weekly gains to the fourth consecutive week after tech stocks rebounded in Friday's trading. For now, investors are overlooking the lack of progress in cooling the core rate of inflation to the Fed's target rate of 2%.

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Wall Street indexes struggled to rise above the flatline after producer price inflation accelerated in November. Investors in Europe held out for additional rate cuts after the ECB lowered rates as widely anticipated. China's leaders offered another vague commitment for additional fiscal stimulus measures.



Producer price inflation accelerated in November, and the core inflation rate stalled above 3% annual rate, indicating the Federal Reserve's inability to cool inflation to its target rate of 2%. 

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Market indexes across the Atlantic edged higher amid a broad surge in tech and interest rate-sensitive stocks following an inflation report. Investors are looking for concrete plans from Chinese authorities to implement fiscal stimulus measures.