This Week
Wednesday’s Fed interest rate decision is undoubtedly the economic highlight of the week. The Fed is expected to cut rates from 4% to 3.75%, but attention will be paid to Chair Powell’s comments about further rate decisions next year. Ukraine will remain one of the most important geopolitical influences on the markets, while traders will continue to monitor any comments from the US administration related to Venezuela.
Stocks
BOEING
Boeing’s stock price jumped 7.51%, with the stock hitting a one-month peak midweek before paring some gains. Boeing CFO stated at a UBS conference that the company forecasts strong jet deliveries and positive cash flow in 2026, which boosted investor confidence. This came amid reports that arch-rival Airbus had reported issues with its A320, which will disrupt deliveries. Upgrades from brokerages such as Freedom Capital Markets also spurred a rally in Boeing’s stock price.
META (Facebook)
Meta’s stock price rallied 4.7%, to test a more than one-month high on Friday, with a major driver being reports that the company will cut 30% of its metaverse budget in 2026. The capital will reportedly be directed to high-growth AI initiatives, which boosted investor confidence in the stock due to longstanding market skepticism on the scale of investment in the metaverse. Brokerage Mizuho welcomed the move, while Rosenblatt reaffirmed that it believes there is 66% upside in Meta’s current stock price. Wider market gains in the AI sector and better-than-expected quarterly company results have also boosted Facebook’s stock price in recent weeks.
Commodities
Crude Oil
Crude oil prices climbed 1.26% as the commodity rose beyond $60 for the first time in over three weeks. Ukrainian strikes on Russian energy infrastructure and new tactics of drone attacks upon Russia’s shadow fleet of oil tankers limited the supply. Stalled Ukraine-Russia peace talks, suggesting that US oil sanctions on Russia are far from being lifted, were also among the catalysts.
Gold
Gold prices declined 0.55% after the United States appeared to back away from imminent military action against Venezuela. Expectations of a Fed rate cut offered some support, but positive market sentiment reduced safe-haven demand as traders shifted towards more volatile instruments.
NATURAL GAS
Natural gas prices soared 10.92% to hit a near three-year peak amid a rise in domestic demand and increased demand from export markets. Recent US figures suggested that heating demand accelerated at the end of November, while weather forecasts predict upcoming freezing temperatures, which is likely to keep the market tight. Liquid Natural Gas demand jumped 40% year on year in November. Meanwhile, in Europe, a drop in natural gas storage levels picked up pace.
GBP/USD
The GBP/USD rose 0.23% by Friday’s close and posted a more than one-month high on Thursday as the dollar fell against most of its rivals. Increasing expectations that the Bank of England may cut interest rates in December were offset by market confidence that the Fed will cut interest rates in December and will signal further interest rate cuts in 2026.
Recap
Last week, the S&P 500 advanced 0.3%, the Nasdaq climbed 1.0% and the Dow Jones increased 0.5%.
US stock indices continued rising towards all-time highs following a record-breaking Black Friday – Cyber Monday shopping weekend, with Adobe reporting $43 billion in spending during the period amid ongoing positive market sentiment. A US-sponsored Russia–Ukraine peace initiative appeared to have stalled as Kiev redoubled its attempts to strike Russia’s oil industry.
Crude oil prices rose above the $60 levels for the first time in three weeks, while natural gas prices surged to repeated two-year highs. Silver prices jumped to a fresh record high while Gold prices declined. Platinum and Palladium prices edged lower.