This Week
US GDP figures on Tuesday will be the highlight of a holiday-shortened week. The fresh US push for a Russia-Ukraine peace deal will continue as President Putin will receive a report from the Russian delegation on Monday, with the Trump administration confirming that new US energy sanctions against Russia may be imposed if Moscow fails to show flexibility in negotiations.
Stocks
AMERICAN AIRLINES
American Airlines' stock price jumped to a ten-month high midweek and held most gains by the close of business on Friday. The airline sector has been benefiting from reports that ticket sales and airport passenger numbers are close to their highest levels since COVID. Lower crude oil prices have also meant that airlines have been able to offer cheaper tickets, further boosting demand. Last week, UBS upgraded AA, noting significant upside, while a recent rotation into cyclical stocks was also supportive.
MICRON
Micron’s stock price surged 6.82% to hit an all-time peak after the company posted record-breaking earnings results on December 17th. The chipmaker reported significant earnings and revenue beats, driven by AI demand and a strong outlook for the next quarter, bolstering investor confidence. Wider market gains due to lower inflation and the increasing likelihood of rate cuts also lifted tech stocks late in the week. Several investment banks, such as Goldman Sachs and Citigroup, raised their price targets, citing the company’s growth prospects among AI-linked stocks.
Commodities
Crude Oil
Crude oil prices declined 1.5%, with oil prices hitting a four-year low at the beginning of the week as the US continued to pressure Ukraine and Russia to engage and then sign up to a peace deal amid fresh US threats to place fresh sanctions on Russian oil if Moscow doesn’t show willingness to do so. The threat of supply disruption to Venezuelan oil exports increased after reports suggested the US continued to intercept tankers approaching or leaving the country. Weaker US data also suggested that oil demand may be softer in 2026.
Gold
Gold prices grew 0.85% in a positive week as the yellow metal was boosted by expectations for further interest rate cuts after softer-than-expected US data. Lower NFP and CPI inflation data also drove the greenback lower, making gold more attractive to foreign currency buyers. Gold also benefited from some safe-haven support amid unofficial reports that the US may yet decide to announce action against Venezuela.
WHEAT
Wheat prices declined 3.5% to trade close to a two-month low with reports suggesting that markets remain well supplied in North America and the Black Sea region. Favourable weather conditions have added to supply confidence in the US. However, in recent weeks, Ukraine has attacked Russian oil tankers for the first time, with Moscow vowing to respond. Late in the week, the Ukrainian port city of Odessa, a key export hub, was hit, a trend that could continue if there is no peace deal is reached.
USD/JPY
The USD/JPY rose 1.18% to a one-month peak by week’s end. While the Bank of Japan increased interest rates to 0.75%, uncertainty remains over the timing of further hikes. Increased Japanese government spending has pressured the yen, while positive market sentiment has also undermined the appeal of the safe-haven currency.
Recap
Last week, the S&P 500 edged up 0.1%, the Nasdaq climbed 0.4%, and the Dow Jones increased 0.6%.
US stock indices climbed last week after lower-than-expected employment and U.S. Inflation releases firmed market expectations that the Federal Reserve would have room to cut interest rates at least twice next year, supporting positive market sentiment. In geopolitics, a Russian delegation travelled to the US to discuss a peace deal with Ukraine, while the US seized another oil tanker bound for Venezuela.
Crude oil prices fell to a five-year low, but pared losses at the end of the week while natural gas declined to a six-week low amid warmer weather forecasts in the US. Silver prices posted fresh all-time highs, and gold prices also ended the week in the green. Platinum prices surged to seventeen-year highs, and Palladium prices hit a more than two-year high amid supply constraints.