The MSCI All-Country World Index rose 0.71% to 1,008.32, extending a rally sparked by strong corporate earnings and renewed investor optimism around artificial intelligence-related technology investments. Despite Friday’s gains, the index still showed a slight decline for the week.
In Japan, the yen came under selling pressure once the BOJ announced its rate hike, prompting some profit-taking and sending the currency toward levels that could trigger official intervention. The move pushed Japan’s 10-year government bond yield to a 26-year peak, while the Nikkei 225 closed up 1% for the session.
“The return to a more optimistic tone around the AI trade is certainly helping the Nasdaq,” said Michael James, equity sales trader at Rosenblatt Securities. His firm recently raised its price target for Micron Technology from $300 to $500 following robust earnings. “We’re not out of the woods, but market sentiment feels a lot better than it did last week.”
Wall Street reflected this enthusiasm, with the Dow Jones Industrial Average gaining 183.04 points, or 0.38%, to 48,134.89. The S&P 500 rose 59.74 points, or 0.88%, to 6,834.50, and the Nasdaq Composite advanced 301.26 points, or 1.31%, to 23,307.62.
Across Europe, the pan-European STOXX 600 index closed at a record high, rising 0.37% and adding 1.6% for the week—the strongest weekly gain since late November.
Economic data in the U.S. offered a mixed picture. Existing home sales increased only slightly in November, restrained by elevated mortgage rates and broader economic uncertainty. Meanwhile, the University of Michigan’s consumer sentiment survey fell short of analyst expectations but remained above the previous month’s level. Gary Schlossberg, global strategist at Wells Fargo Investment Institute, said, “The economy may be moving out of what appears to have been a mild soft patch. Inflation may have peaked, at least for now, which is encouraging for the Fed and markets alike.”
Currency and Bond Movements
The yen weakened sharply, dropping 1.38% against the dollar to 157.69, while the dollar index rose 0.27% to 98.70. The euro edged lower to $1.1711. In bond markets, U.S. Treasury yields climbed alongside global debt, with the 10-year yield rising to 4.149% and the 30-year yield reaching 4.8272%, reflecting a broader recalibration of interest rate expectations.
Oil and Precious Metals Rally
Energy markets also saw upward pressure, with oil prices rising on concerns over potential supply disruptions from Venezuela amid U.S. sanctions. U.S. crude settled at $56.66 per barrel, up 0.91%, while Brent crude rose 1.09% to $60.47 per barrel.
Precious metals gained as well, with silver hitting a record high of $67.22 per ounce on strong investment demand and supply tightness. Gold also edged higher to $4,339.03 per ounce, supported by speculation that the Federal Reserve may ease rates in the near future.
Overall, Friday’s market movements reflected a combination of central bank actions, corporate earnings, and geopolitical risks, leaving investors cautiously optimistic as they navigated mixed economic signals and shifting global financial conditions.