Explore last week's stock performance, Forex market updates, and the rise of quantum computing stocks. Stay ahead in trading with key insights.
Last week ended with European stocks closing higher and US stocks dropping lower. The S&P 500 fell over 1% on Friday, while the Stoxx 600 rose 0.67%. Although trading volumes were thin due to the holiday week, the market hinted at a potential shift from tech to non-tech stocks—a theme expected to dominate next year.
Big tech might struggle to meet the high expectations. US stocks are on track for their biggest yearly gains since 1997, but predictions for AI-related company growth might be overestimated. Analysts warn the S&P 500’s pricing implies a 40% growth, higher than the anticipated 30%. Tech investors are eyeing the next big trend: quantum computing. Google’s progress with its new quantum chip, Willow, sparked interest, boosting Defiance’s Quantum ETF by 30% this month. However, quantum tech isn’t yet ready for widespread commercialization, so current rallies lack strong earnings support.
The "Magnificent 7" tech stocks fell over 2% Friday, with Netflix shares taking a hit after a disappointing debut for Squid Game Season 2. The Korean entertainment sector also faced pressure, with Dexter Studios dropping 24%.
In Asia, markets began the week negatively. Japan's Nikkei and Australian markets saw thin volumes and declines. South Korea made headlines due to a tragic airplane crash, impacting Jeju Air stocks.
In the Forex market:
• EURUSD: Facing resistance at 1.0435
• GBPUSD: Offered at 1.26
• USDJPY: Flirting with 158 resistances
Japanese officials are debating intervention as USDJPY nears the 160 level, which could trigger direct action to stop the yen's decline.
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