Asia Stocks Poised for Gain as S&P 500 Hits Record: Markets Wrap
(Bloomberg) — Asian stocks were set for a mildly positive start on Friday after US shares as well as a broader gauge of global equities hit a fresh record.
Australia’s benchmark was up nearly 1% in early trading after the S&P 500 climbed 0.2% Thursday. Futures on the US benchmark were little changed while those on the tech-heavy Nasdaq 100 fell 0.1%. Despite the record highs, some caution for tech names persisted as Broadcom Inc.’s shares slid in late trading after the chipmaker’s outlook for artificial intelligence revenue failed to meet investors’ lofty expectations.
Thursday’s action lifted the MSCI All Country World Index — one of the broadest measures of the stock market — to a new closing high. The move, which came after the Federal Reserve cut interest rates as expected, placed the global equity benchmark on track for its best year since 2019.
“The momentum should continue into year-end. With rate cuts underway, a new Fed chair on deck, and earnings trending higher, the bull market looks positioned to extend into 2026,” said Gina Bolvin, President of Bolvin Wealth Management Group. “As more companies adopt AI, participation should broaden and sectors beyond the Magnificent Seven may start to show strength.”
Treasuries whipsawed, leaving yields fractionally higher after trading lower through most of Thursday. Data showed that initial jobless claims rose more than expected in the Dec. 6 week. An index of the dollar, meanwhile, traded around a two-month low.
Gold climbed more than 1% Thursday, closing in on a new record, while silver set its third daily closing high and has more than doubled this year. Oil fell and Bitcoin flip-flopped in a tight range around $93,000.
In Asia, data set for release includes industrial production for Malaysia and Japan, and inflation for India. Thai Prime Minister Anutin Charnvirakul moved to dissolve parliament, setting the stage for an early election after reports of a key political party backing his minority government moving to withdraw its support.
The tech sector will continue to be focus after dominating much of the recent market action following Oracle Corp.’s results — which brought worries about valuations and whether heavy spending on AI infrastructure will pay off back into focus.
While the sector has powered the S&P 500’s stunning rally this year, spending fears have prompted some investors to rotate into other areas as the US economic outlook remains robust. Nvidia Corp. fell 1.6% Thursday while the Magnificent Seven index of tech giants dropped 0.6%.
“Markets have grown far more wary of AI-related spending, which is a sharp contrast with mid-2025 when anything hinting at higher capex sparked excitement,” said Susana Cruz, a strategist at Panmure Liberum. “Oracle has been the weakest link in all this, largely because it’s funding a big chunk of its investment with debt.”
Fresh highs for US stocks follow the Federal Reserve’s rate cut this week and signs further easing remains in play next year. Traders stuck to bets on two cuts in 2026, even as the Fed’s new projections signaled only one such move.
“The effect of Oracle has been greater than the Fed. This already tells us everything as we’ve been witnessing a strong concentration and one theme — AI — leading the market,” said Alberto Tocchio, a portfolio manager at Kairos Partners. “This doesn’t mean that AI is gone or it’s a bubble, but we need to focus on a wider scale.”
Fed Chair Jerome Powell suggested that the Fed had now acted sufficiently to help stabilize the labor market while leaving rates high enough to continue weighing on price pressures. Officials upgraded their median outlook for growth in 2026, to 2.3% from the 1.8% they projected in September. They also foresaw inflation declining to 2.4% next year, from the 2.6% in the previous projection.
“The Fed’s ‘hawkish-but-bullish’ cut last night reinforces this: stronger 2026 growth, faster disinflation,” said Florian Ielpo, head of macro at Lombard Odier Investment Managers. “Cuts are continuing, but they’re no longer automatic — and that’s usually a constructive backdrop for equities.”
Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 8:36 a.m. Tokyo time Australia’s S&P/ASX 200 rose 0.9% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was unchanged at $1.1738 The Japanese yen was little changed at 155.60 per dollar The offshore yuan was little changed at 7.0505 per dollar Cryptocurrencies
Bitcoin fell 0.1% to $92,768.14 Ether fell 0.3% to $3,240.68 Bonds
The yield on 10-year Treasuries advanced one basis point to 4.16% Japan’s 10-year yield declined three basis points to 1.925% Australia’s 10-year yield declined one basis point to 4.71% Commodities
West Texas Intermediate crude rose 0.6% to $57.92 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.
©2025 Bloomberg L.P.
