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👋 ICYMI

U.S. markets ended the week on a generally positive note after cooler-than-expected inflation readings and strong tech earnings reports. The Nasdaq rallied midweek alongside major AI and semiconductor names after blowout data from Micron $MU ( ▲ 6.99% ) and broader optimism about AI demand. Meanwhile, the Dow logged gains led by financials and cyclicals, extending a year-end rebound as investors absorbed mixed macro signals ahead of the final Federal Reserve policy meeting of 2025.

🔁 Market Movers

• 💻 Tech Rebounds on AI Demand

  Micron reported strong forecasts and data-center memory demand, helping lift AI-related sectors and propelling the Nasdaq higher later in the week.

• 📈 Dow & S&P Gain on Broad Participation

  Goldman Sachs $GS ( ▲ 1.96% ) , Cisco $CSCO ( ▲ 1.91% ) , Boeing $BA ( ▲ 2.79% ) and other large names helped fuel gains in the Dow and S&P 500 as investors embraced stronger earnings and seasonal optimism.

• 📉 Early Week Drag from AI Jitters

  Earlier in the week, caution around AI valuations and uncertainty about rate cuts weighed on markets before the midweek rally.

• 🌐 Global Markets Move Higher

  European benchmarks like the FTSE 100 echoed the U.S. tech rebound, buoyed by risk-on sentiment even as some retail data disappointed.

👀 Signals I’m Watching

• ⬇️ Inflation Showing Signs of Peeling Back

  CPI data for November came in cooler than expected, lifting sentiment on rate expectations and potentially supporting further modest easing in 2026.

• 🤖 AI Momentum Isn’t Dead — It Just Paused

  After mid-week weakness, AI and semiconductor stocks rebounded on strong earnings signals, implying continued structural demand for AI infrastructure into 2026.

• 🎯 Investors Turn Selective Within AI — Not Exiting It

  Investors are no longer buying the AI theme indiscriminately. Capital is rotating within AI — toward profitable infrastructure, chips, and software with visible cash flows — while high-multiple, story-driven names are seeing trims. This shift suggests the AI trade is maturing, not ending, and rewards fundamentals over hype.

• 📊 Treasury Yields Reflect Policy Uncertainty

  Bond yields rose modestly later in the week as markets digested inflation data and the Bank of Japan’s rate increase, underscoring that global policy pushes still matter.

⚠️ Red Flag to Note

Stagflation Risk Still in the Backdrop

Some economists warn that lingering inflation and slowing growth could create a stagflationary drag that complicates future rate cuts and market momentum — a risk markets are not fully pricing.

🔍 Insider Transactions I’m Watching

→✨NEW ✨ My framework for reading insider moves — when buy signals outweigh noise (and when they don’t)

🚀 IPO Watch

📅 Upcoming IPOs to Watch

🏥Lumexa Imaging: Healthcare services provider Lumexa priced its IPO, adding to a modest December pipeline focused on cash-generating, non-speculative businesses.

🔎 Key Names on Watch (2026)

🛰️SpaceX / Starlink IPO: Reports say SpaceX is laying groundwork for a potential 2026 IPO, likely centered on Starlink — a deal that could redefine the tech IPO landscape if it moves forward.

📬 Closing Note

This week showed that markets still respond to fundamentals — inflation data, earnings strength, and policy signals — even in a late-cycle environment. Tech dips can correct, yields can adjust, and policy risks remain. But with growth cues intact and investor appetite stabilising, selective positioning into resilient sectors and structural themes can pay off. Stay disciplined, watch the signals, and be ready for the opportunities that 2026 could bring.

Until next Sunday —

George