AI-Led Rebound Lifts Global Markets

Market Overview

Global equity markets advanced, with US stocks extending gains on renewed AI optimism, Europe hitting fresh record highs, and Asia moving higher as policy shifts and inflation dynamics shaped investor sentiment. Risk appetite improved heading into the final trading stretch of the year.

US Markets: AI Trade Regains Momentum

US equities posted back-to-back gains, led by a strong comeback in AI-related names. Oracle$Oracle(ORCL)$   surged 6.6% after TikTok agreed to sell its US operations to a joint venture involving the software giant and Silver Lake. The Dow $DJIA(.DJI)$  rose 0.4%, the S&P 500 $S&P 500(.SPX)$  climbed 0.9%, and the Nasdaq $NASDAQ(.IXIC)$  outperformed with a 1.3% gain, reflecting renewed optimism in technology and growth sectors.

European Markets: Record Highs on Renewed Confidence

European markets closed at all-time highs as investors regained confidence following recent weakness. Defence and insurance stocks provided key support, while optimism ahead of year-end helped sustain momentum. Germany’s DAX rose 0.4%, the FTSE 100 added 0.6%, and France’s CAC 40 was flat, indicating selective buying with a positive tone.

Asian Markets: Japan Leads Regional Gains

Asia ended broadly higher, with Japan leading the charge after its central bank raised policy rates to a three-decade high amid persistent inflation above target. The Nikkei advanced 1.0%, Hong Kong’s Hang Seng $HSI(HSI)$  gained 0.8%, and China’s Shanghai Composite edged 0.4% higher, supported by cautious optimism and policy expectations.

Outlook and Insights

Market sentiment remains constructive, supported by AI enthusiasm in the US, stabilizing European confidence, and policy-driven dynamics in Asia. However, investors may stay alert to year-end positioning, macro developments, and earnings guidance. AI remains a key structural growth theme, while central bank policy signaling will continue to guide regional performance.

Conclusion

With equities broadly firmer and confidence improving, markets appear poised to close the year on a positive note, though selective risks remain. Investors will watch whether current momentum can sustain into the new year driven by earnings strength, policy clarity, and continued AI-related growth leadership.