The Stock Rally Is Broadening as AI Fever Cools Off

The US Supreme Court is set to rule on the legality of tariffs imposed by President Donald Trump in April, which previously caused significant market fluctuations. This ruling could have substantial implications for various stocks that have experienced growth since the tariffs were enacted.

The S&P 500 index experienced fluctuations as investors shifted their focus away from major technology stocks, opting instead for investments in old-economy and small-cap companies. This shift reflects a broader trend in market sentiment as investors reassess their portfolios amid changing economic conditions.

Slovakia's new debt management chief anticipates a reduction in the country's borrowing needs by up to €2 billion in 2026, projecting bond sales could reach as high as €11 billion. This shift reflects a more selective approach from investors towards sovereign bonds in the euro area.

Federal Reserve Bank of Chicago President Austan Goolsbee and Federal Reserve Bank of Kansas City President Jeff Schmid expressed their dissent regarding the recent decision to cut interest rates, citing concerns over inflation and economic stability. Their statements highlight a divergence within the Federal Reserve regarding monetary policy direction amidst ongoing economic challenges.

The U.S. has seized a sanctioned oil tanker off the coast of Venezuela, a move that threatens to exacerbate the country's already fragile economy, which is on the brink of hyperinflation. This seizure is part of a broader strategy by the U.S. to exert pressure on the Venezuelan government amid ongoing political turmoil.

China's market regulator has introduced new draft guidelines aimed at preventing automakers from engaging in aggressive price competition, which has been contributing to deflationary pressures in the economy. This move comes as car sales in the country have seen a significant decline, marking a shift in consumer behavior and demand.

The global oil tanker business has become increasingly complex, with geopolitical tensions and sanctions influencing operations. The ongoing Cold War dynamics are reshaping how petroleum is transported across international waters, making it a critical area of focus for market analysts.

India's inflation rate increased in November from a record low in the previous month, yet it remains significantly below the central bank's target of 4%. This situation suggests that there is room for potential interest rate cuts in the upcoming year.