Global Markets
Canadian Markets
Canada’s S&P/TSX Composite Index declined as falling oil prices weighed on the energy sector. Technology stocks faced downward pressure as investors reacted to ongoing concerns about slowing growth in the sector, and Canadian banks also contributed to the decline, with concern over interest rate direction, and loan growth concerns.
Some economists are forecasting that Canada’s economy will face significant pressures heading into 2026, citing a combination of domestic and global factors. Rising interest rates, aimed at controlling inflation, are expected to increase borrowing costs for consumers and businesses, potentially slowing spending and investment. The housing market, which has already shown signs of cooling, could experience further weakness, impacting construction, real estate, and related sectors.
Additionally, consumer confidence could be strained by persistent inflation, eroding household purchasing power and reducing discretionary spending. Combined with ongoing uncertainties in trade relationships and global economic growth, these factors are leading economists to warn that Canada could enter a period of slower economic growth, potentially challenging the resilience of key sectors such as energy, banking, and technology.
American Markets
American, stocks dropped across the board, with the Nasdaq Composite leading the losses. The drop was driven by renewed concerns about inflated valuations in technology and artificial intelligence-related companies. Broadcom’s earnings results and guidance triggered worries about a potential AI bubble, prompting traders to move to the sidelines, and also caused weakness in major tech companies, including Nvidia, Oracle. As a consequence investors are rotating into more defensive sectors such as healthcare and consumer staples.
European Markets
European markets also fell as investors digested inflation updates from Germany and France. Annual inflation rates in Germany and France remained at 2.3% and 0.9%, respectively, in line with forecasts. Although energy and food prices eased, climbing costs in the services sector kept overall inflation stubborn. As a result, European investors remained cautious due to the persistence of inflationary pressures and uncertainty around the ECB’s monetary policy
In the United Kingdom, stocks also declined after data showed that the economy contracted by 0.1% in the third quarter. This slowdown raised concerns about economic growth and contributed to a weaker British pound. The currency depreciation reflected market expectations of potential monetary policy adjustments by the Bank of England in response to the weaker economy.
Corporate Stock News
Alphabet Inc (GOOGL): Papua New Guinea announced that Google will build three subsea cables funded by Australia under a mutual defence treaty, enhancing the digital infrastructure of PNG and the Bougainville autonomous region. The $120-million project links northern and southern Papua New Guinea and is part of Australia’s commitment under the Pukpuk Treaty.
Apple Inc (AAPL): A U.S. appeals court partly reversed an order requiring Apple to modify its App Store practices in a lawsuit brought by Epic Games, but upheld most of the contempt finding and an earlier injunction. The ruling allows Apple to claim a reasonable commission on certain off-platform transactions.
Bank of America Corp (BAC): The bank will promote 40 technology division executives to managing directors on January 1, up from 17 last year, marking the largest percentage increase among its divisions. Overall, 394 executives were promoted across all divisions, reflecting the bank’s focus on AI and digital tools.
Broadcom Inc (AVGO): The company projected Q1 revenue above Wall Street estimates at $19.1 billion but expects gross margins to decline due to a higher AI revenue mix. The backlog stands at $73 billion for the next 18 months. Additionally, Jefferies raised Broadcom’s target price to $500 from $480, citing accelerating AI chip demand and a growing backlog.
Costco Wholesale Corp (COST): Costco beat revenue and profit estimates for Q1, with revenue of $67.31 billion and EPS of $4.50. Same-store sales, excluding gas, rose 6.4%, aided by strong performance in same-day delivery services via Instacart, UberEats, and DoorDash.
Eli Lilly and Co (LLY): The FDA is considering speeding up review timelines for Eli Lilly’s experimental weight-loss pill, potentially reducing internal review from 60 days to 1–3 weeks depending on application complexity. A decision could come as early as March 28, ahead of the May 20 deadline.
Forge Global Holdings Inc (FRGE): Citizens downgraded Forge Global to Market Perform from Market Outperform following the previously announced sale agreement to Charles Schwab.
Intel Corp (INTC): Intel tested chipmaking tools from ACM Research, including two units previously targeted by U.S. sanctions in China and South Korea. The tools are being considered for Intel’s 14A advanced chipmaking process, slated for initial launch in 2027.
Lululemon Athletica Inc (LULU): CEO Calvin McDonald will step down in January. Interim co-CEOs are Meghan Frank and André Maestrini. Lululemon raised its annual profit forecast to $12.92–$13.02 per share and expects annual sales to rise despite a $210 million operating income hit from tariffs. Q4 revenue came in at $2.57 billion.
Moderna (MRNA): Jefferies initiated coverage with a Hold rating and a $30 target, noting the company’s outlook depends on stabilizing COVID vaccine sales and developing its broader vaccine and oncology pipeline.
Nvidia Corp (NVDA): Senator Elizabeth Warren requested that Nvidia CEO Jensen Huang and Commerce Secretary Howard Lutnick testify after President Trump greenlit sales of Nvidia’s H200 AI chip to China, raising national security concerns.
Reddit Inc (RDDT): Reddit filed a lawsuit in Australia’s High Court to challenge the country’s social media ban for children, arguing it infringes on free political communication and free speech. The action follows a prior challenge filed by teenagers from an Australian libertarian group.
Rubrik Inc (RUBR): Berenberg raised its target price to $119 from $114 after Rubrik reported strong Q3 results and issued positive guidance for upcoming quarters.
Tesla Inc (TSLA): U.S. sales of Tesla vehicles fell nearly 23% in November to 39,800 units, a near four-year low, despite the rollout of cheaper “Standard” models. Tesla’s market share in U.S. EVs increased to 56.7% from 43.1%.
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