Equity indices across major regions posted gains Friday, driven by renewed optimism around potential rate cuts in early 2026 and robust earnings from tech leaders. The S&P 500 rose 1.4%, while Nasdaq Composite climbed 2.1%.
- S&P 500 rose 1.4% to close at 5,319.20
- Nasdaq Composite advanced 2.1% to 18,742
- Nvidia reported Q4 revenue of $21.4 billion, surpassing forecasts
- 10-year U.S. Treasury yield fell to 4.21%
- Oil prices rose to $78.60 per barrel
- MSCI Emerging Markets Index gained 1.9%
Global financial markets ended the week on a high note, with broad-based rallies across equities and fixed income. Investor sentiment improved sharply following a series of dovish signals from central bank officials, particularly in the U.S. and Europe. Traders now price in a 68% probability of a rate cut by the Federal Reserve in March 2026, up from 52% at the start of the week. Technology stocks led the charge, with Nvidia Corp. surging 7.3% after reporting fourth-quarter revenue of $21.4 billion—exceeding estimates by 12%. Apple Inc. added 3.9% as supply chain data indicated strong holiday season demand for the iPhone 17 lineup. The Nasdaq Composite closed at 18,742, marking its best weekly performance since September. Bond markets responded positively to the shift in tone, with the yield on the 10-year U.S. Treasury falling to 4.21% from 4.35% earlier in the week. European sovereign yields also declined, with Germany’s 10-year bund dropping to 2.55%. These moves reflect expectations that inflation pressures may be cooling faster than previously anticipated. The rally extended to emerging markets, where the MSCI Emerging Markets Index gained 1.9%, fueled by stronger-than-expected industrial output in China and a rebound in commodity prices. Crude oil futures settled at $78.60 per barrel, a gain of 3.2% on increased Middle East supply concerns.