Global Markets
American Markets
U.S. stocks traded higher today, supported by selective strength in the technology sector, although leadership within AI-related stocks was mixed. Shares of major artificial intelligence leaders, including AMD and Nvidia, moved lower likely over valuation concerns. However Broadcom and Amazon both rose. Semiconductor stocks tied to memory and storage outperformed sharply, as Micron Technology surged approximately 10 percent following improved outlook commentary and signs of stabilization in memory pricing, while SanDisk rallied nearly 30 percent, driven by renewed optimism around storage demand and corporate developments within the sector.
Economic data in the United States reinforced a narrative of gradual cooling. The December services sector PMI came in weaker than expected, indicating slower growth in service activity and easing demand pressures. While this raised some concerns about near-term economic momentum, investors largely interpreted the data as supportive of a more accommodative policy outlook, helping to underpin equity markets despite mixed sector performance.
Canadian Markets
Canadian equity markets also advanced to fresh highs, demonstrating resilience despite notable crosscurrents at the sector level. Weakness in oil prices continued to pressure the energy sector, weighing on large-cap producers and integrated names. However, this drag was more than offset by strong gains in the mining sector, as rising gold and copper prices lifted sentiment across precious and base metal stocks. The move higher in metals reflected a combination of renewed demand optimism, expectations for easing global monetary policy, and increased interest in hard assets as a hedge against economic uncertainty.
Broader economic concerns remained in focus, as several Canadian bank CEOs have recently highlighted rising economic inequality as one of the most significant long-term risks facing the country. Executives warned that growing disparities in income and wealth could constrain consumer spending, increase credit risk, and ultimately weigh on sustainable economic growth if left unaddressed. These comments underscore a cautious outlook from financial leaders, even as equity markets continue to push higher.
A recent survey showed that 61 percent of Canadians expect the economy to worsen in 2026, reflecting concerns around affordability, elevated interest rates, and slowing growth momentum. This disconnect between market highs and public pessimism suggests that current equity strength is being driven more by sector-specific tailwinds, such as rising metals prices than by broad confidence in the domestic economic outlook.
European Markets
European markets were also higher, with major indices reaching fresh highs. Sentiment was boosted by inflation data from Germany, where December inflation fell more than expected, strengthening expectations that the European Central Bank could move closer to easing monetary policy in 2026.
In the United Kingdom, stocks also advanced to new highs, with the FTSE rising roughly 1 percent. Healthcare stocks led the gains, despite data showing UK inflation rose in December.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
