đź“Š Weekly Market Recap
- S&P 500 return Year-to-date were approximately 17.33%
- S&P 500 3 month return were approximately 4.76%
- S&P 500 return over the past month were approximately 2.43%
- S&P 500 return over the past 7 days were approximately 0.82%
This Week in the Markets- 3 Things to know
- Silicon Catalyst Moment — All eyes are on Nvidia as regulators move closer to approving a revised AI chip for the Chinese market, potentially reopening a major revenue stream while keeping geopolitical tensions in check. The approval isn’t just a win for NVDA, it’s a signal for the entire semiconductor supply chain, which has been trying to balance fast-growing AI demand with strict export controls. If China import access normalizes it could still extend the hardware upgrade cycle and help stabilize sentiment across chipmakers, data-center operators, and anyone tied to AI infrastructure spending.
- The Decision That Sets the Tone — The Federal Reserve took center stage mid-week and delivered a widely anticipated 25 basis points cut to its policy rate, bringing the federal funds target down to 3.50%–3.75% in its final meeting of 2025, marking the third straight rate reduction this year. Markets rallied on the news, with the S&P 500 and Dow Jones climbing as traders took the move as a supportive signal for risk assets and priced in the chance of further easing next year. Treasury yields slid and equities improved as investors interpreted Chair Powell’s comments as leaving the door open for additional cuts in 2026, though internal Fed projections show only one more cut expected next year.
- The Battle for Hollywood — What started as a blockbuster deal has turned into one of the most dramatic takeover fights in entertainment history. Netflix originally agreed to buy Warner Bros. Discovery’s studios and streaming assets for roughly $72 billion. But this week, Paramount Skydance stormed the field with a hostile $108 billion all-cash bid directly to WB shareholders, arguing it’s offering more cash per share and a quicker path to close than Netflix’s offer. The move instantly escalated the stakes, igniting speculation that Netflix may be forced to raise its bid or walk away entirely. Investors now see the deal as a defining moment for the future of streaming, with whichever company prevails securing one of the most powerful content libraries in the world.
Positioning For The Long Term
After two years of cooling inflation, uneven hiring data, and a Fed gradually stepping back from aggressive tightening, 2026 is shaping up to be a year of moderate, steady regrowth for the U.S. economy. Policymakers are shifting from crisis management to long-term stability, allowing markets to trade more on fundamentals and less on fear-driven swings. With economic conditions easing and inflation lower, we are hoping a more predictable environment, one that supports healthier expansion than the volatile post-pandemic years.
A major source of that renewed momentum comes from the accelerating AI investment cycle, where capital is flowing rapidly between Nvidia, OpenAI, cloud providers, chipmakers, and enterprise buyers. This emerging “AI money loop” from innovation to infrastructure spending to productivity gains is beginning to create some questions on how efficient this will be. Companies are deploying billions into AI hardware and cloud capacity, and early signs suggest these investments could meaningfully boost output. If adoption continues at this pace and earnings reports are showing growth and beating estimates, 2026 could be the first year AI contributes noticeably to GDP growth, helping offset broader economic cooling and deflating the “AI Bubble”.
At the same time, gradually lower interest rates should revive activity in housing, small-business lending, and durable goods, giving consumers some much-needed breathing room after years of tight financial conditions. Spending may not surge, but a backdrop of stability paired with rising productivity is often exactly what drives sustainable growth. Overall, 2026 is emerging as a true reset year, steadier, more balanced, and increasingly efficient, driven largely by how effectively the economy converts new profit streams into long-term momentum.
S&P 500 SECTOR SNAPSHOT- Past Month
