5 Key Events That Drove Stock Market Last Week
- Stocks ended the week on a positive note, driven by a rebound in the artificial intelligence sector, despite lingering concerns about AI spending and funding.
- The stock market experienced a volatile week, ultimately finishing higher thanks to gains in the artificial intelligence trade.
- Initial anxieties centered around potential funding issues for Oracle's data center projects related to TikTok, and broader concerns about the sustainability of current AI-related spending levels.These concerns contributed...
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Wall Street Roundup: AI Volatility, Oracle’s TikTok Deal, and Market Resilience
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Stocks ended the week on a positive note, driven by a rebound in the artificial intelligence sector, despite lingering concerns about AI spending and funding. The S&P 500 and Nasdaq secured modest weekly gains, tho December remained a slightly negative month overall. Key moments included Nvidia’s potential China shipments and Oracle’s involvement in a TikTok joint venture.
Market Performance Overview
The stock market experienced a volatile week, ultimately finishing higher thanks to gains in the artificial intelligence trade. The S&P 500 edged up 0.1% for the week, while the Nasdaq Composite saw a 0.5% increase. Despite these gains, both indexes remained modestly lower for the month of December, a period traditionally known for strong performance[[[[Investopedia – December Rally].
Initial anxieties centered around potential funding issues for Oracle’s data center projects related to TikTok, and broader concerns about the sustainability of current AI-related spending levels.These concerns contributed to earlier losses in the week, but a rebound on Thursday and Friday helped offset them.
Key Market Drivers
1. AI Chip Makers: Nvidia and Broadcom
Nvidia was a standout performer, with shares rising 3.4% for the week. This surge followed news that the U.S. government is reviewing a potential shipment of nvidia’s H200 chips to China [[[[Reuters – U.S.Government Reviewing Nvidia H200 Chip Exports to china]. Despite its high valuation – currently trading at 23.5 times fiscal 2027 earnings estimates - analysts note this is relatively inexpensive compared to its past average of over 70 times[[[[CNBC - Stock Market Today].
Broadcom also benefited from the AI rally on Friday, but couldn’t fully recover from earlier losses, ending the week down 5.4%.
2. nike’s Earnings and Guidance
Nike reported stronger-than-expected earnings, but its guidance for the current quarter fell short of expectations, leading to a 1.3% decline in its stock price. The company cited macroeconomic headwinds and currency fluctuations as contributing factors[[[[Wall Street Journal – Nike Earnings Report].