1. Asia-Pacific markets trade mostly higher after Wall Street notches fresh record
Asia-Pacific markets traded mostly higher Friday, tracking Wall Street gains after two key benchmarks hit new records on the heels of the recent Federal Reserve decision to cut rates. The central bank on Wednesday lowered its key overnight borrowing rate by a quarter percentage point, putting it in a range of 3.5%-3.75%. Japan’s benchmark Nikkei 225 rose 0.96%, while the Topix added 1.18%. South Korea’s Kospi advanced 0.29%, while the small-cap Kosdaq traded around the flatline. Australia’s benchmark S&P/ASX 200 was 0.83% higher. Hong Kong’s Hang Seng index added 0.71%, while the mainland’s CSI 300 declined 0.2%. China’s top leaders wrapped up an annual economic planning meeting Thursday by affirming broad economic support for the year ahead, including boosting consumption and stabilizing the property sector.
2. S&P 500, Dow close at record highs as Oracle sparks rush out of AI trade into broader market
The Dow Jones Industrial Average and S&P 500 reached new heights on Thursday, as a Federal Reserve interest rate cut followed by disappointing Oracle results prompted investors to move out of high-flying tech stocks and into names that can benefit from a growing U.S. economy. The 30-stock Dow rose 646.26 points, or 1.34%, to finish at 48,704.01, a fresh closing high. The index also scored a new record intraday high, supported by a rise in Visa shares after the name was upgraded at Bank of America. The broad market S&P 500 traded up 0.21% to settle at 6,901.00, which was also a closing record. However, the Nasdaq Composite pulled back 0.26% to finish at 23,593.86.
3. Gold prices hold near a seven-week high
Gold traded around $4,270 per ounce on Friday, holding near a seven-week high and heading for a weekly gain, supported by expectations of further US monetary easing. Fresh signs of labour market cooling reinforced views that the Federal Reserve may deliver two rate cuts in 2026. Jobless claims for the week of December 6 rose more than expected, reaching their highest level in over two months. The data came after the Fed delivered its third 25 bps cut of the year and adopted a less hawkish tone than markets anticipated. Chair Powell signalled that additional rate hikes are essentially off the table, prompting traders to price in two cuts for 2026, even though the Fed’s projections suggest only one.
4. Oil prices stabilise on Friday, but still on track for weekly loss
WTI crude oil futures stabilized near $58 per barrel on Friday, but were still on track for a weekly loss of over 3% amid expectations of a global surplus. The International Energy Agency reaffirmed its forecast for a record supply glut, though slightly lower than last month’s estimate, and noted that global inventories have climbed to a four-year high. In contrast, OPEC maintained its 2026 outlook for both global oil supply and demand, signalling a more balanced market. Geopolitical tensions also influenced prices earlier in the week. The US intercepted a sanctioned Venezuelan tanker; a move Caracas labelled an “act of piracy.” Venezuela, which holds the world’s largest oil reserves, exported about 586,000 bpd last month, mostly to China.
5.Trump signs executive order for single national AI regulation standard, limiting power of states
President Donald Trump signed an executive order Thursday issuing a single regulation framework for artificial intelligence, undermining the power of individual states. “To win, United States AI companies must be free to innovate without cumbersome regulation,” the order says. “But excessive State regulation thwarts this imperative.” The Trump administration, with the aid of AI and crypto czar David Sacks, has been pursuing a path that would allow federal rules to pre-empt state regulations on AI, a move meant to keep big Democratic-led states like California and New York from exerting their control over the growing industry. The move marks a win for tech companies like OpenAI and Google and venture firm Andreessen Horowitz that have lobbied to limit regulations they view as overly burdensome.
6. Trump thinks more should be done to lower interest rates, White House says
President Donald Trump was happy to see the Federal Reserve cut interest rates by 25 basis points this week, but wants to see further reductions in borrowing costs, White House spokeswoman Karoline Leavitt told reporters on Thursday. “I know there was a quarter-point reduction this past week, and the president was pleased to see that, but he thinks more should be done,” Leavitt said. The U.S. central bank cut interest rates on Wednesday, but signalled borrowing costs are unlikely to drop further in the near term as it awaits clarity on the direction of the job market, inflation and the overall economy. Trump has repeatedly criticized Fed Chair Jerome Powell for not cutting rates earlier and more aggressively. The president is interviewing candidates to replace Powell, whose term as head of the central bank ends in May.
7. Trump administration to overhaul financial stability watchdog to focus on economic growth: Bessent
The Trump administration is overhauling a government watchdog charged with monitoring risks to the financial system to focus more on ways to boost economic growth and the “undue burdens” imposed by strict financial rules, Treasury Secretary Scott Bessent announced Thursday. Bessent said the Financial Stability Oversight Council, a panel created following the 2008 financial crisis which he chairs, will shift focus towards ways to ease financial rules, arguing the costs of regulations to economic growth constitute a risk themselves. As part of that effort, Bessent said the FSOC will establish working groups focused on market resilience and household resilience, as well a working group to explore the opportunities and risks posed by artificial intelligence. Bessent announced the changes on the social media platform X, ahead of an FSOC meeting he is scheduled to chair Thursday afternoon.
8.Democratic Senator Warren criticizes Trump’s Fed picks as lacking independence
Democratic Senator Elizabeth Warren labelled President Donald Trump’s top contenders to lead the Federal Reserve “sock puppets” on Thursday, singling out Kevin Hassett as someone who would not be able to maintain the U.S. central bank’s independence. The president is looking for someone who will do his bidding,” Warren said in an interview with CNBC. Warren is the top Democrat on the Senate Banking Committee, which is responsible for vetting nominees to the Fed’s board. Hassett, the front-runner to be the Federal Reserve’s next chair, works directly for Trump as director of the White House National Economic Council. Other top candidates include former Fed Governor Kevin Warsh and Fed Governor Christopher Waller. “Look, I am most worried about Kevin Hassett,” Warren said.
9. Oracle’s lease commitments jump by almost 150% as company builds out to meet AI demand
On Wednesday, Oracle told investors that it would ramp up capital expenditures in the current fiscal year to $50 billion from an earlier forecast of $35 billion because of new contracts from the likes of Meta and Nvidia. That’s not the only way the software giant plans to supply robust computing power to meet soaring demand. It’s also ratcheting up leases. As of Nov. 30, Oracle had $248 billion in lease commitments for data centres and cloud capacity commitments that will run for 15 to 19 years, the company disclosed in a quarterly filing on Thursday. That’s up 148% from the end of August. Oracle had $10 billion in cloud capacity arrangements at the end of the quarter, according to the filing.
10. Rivian announces new AI tech, chip and robotaxi ambitions
Shares of Rivian Automotive declined 6.1% Thursday after the electric vehicle maker held its first “Autonomy and AI Day,” with plans to eventually launch self-driving EVs. Rivian CEO RJ Scaringe and other executives said the automaker has developed a custom chip, car computer and new artificial intelligence models that will enable it to bring autonomous features to its forthcoming vehicles. Rivian also said it plans to roll out an Autonomy+ subscription with “continuously expanding capabilities” to customers of its second-generation vehicles in early 2026, to be powered by its Rivian Autonomy Processors and autonomy computers. The Autonomy+ offering will be priced at $2,500 as a one-time, up-front purchase or is available for $49.99 per month to start. By comparison, competitor Tesla offers its premium FSD (Supervised) option for $8,000 up front or a $99 per month fee.
11. Disney to invest $1 billion in OpenAI, license characters for Sora video tool
Walt Disney is investing $1 billion in OpenAI and will let the startup use characters from Star Wars, Pixar and Marvel franchises in its Sora AI video generator, a deal that could reshape how Hollywood makes content. The three-year partnership announced on Thursday is a pivotal step in Hollywood’s embrace of generative artificial intelligence, sidestepping the industry’s concerns about the impact of AI on creative jobs and intellectual property rights. As part of the licensing deal, Sora and ChatGPT Images will start generating videos using licensed Disney characters such as Mickey Mouse, Cinderella and Mufasa, starting early next year. The agreement excludes any talent likenesses or voices. “Through this collaboration with OpenAI we will thoughtfully and responsibly extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works,” Disney CEO Bob Iger said.
12. Tesla US sales drop to nearly 4-year low in November despite launch of cheaper versions
Tesla’s U.S. sales dropped to a near four-year low in November, despite the automaker’s rollout of new, cheaper versions of its best-selling electric vehicles, estimates from Cox Automotive given exclusively to Reuters showed on Thursday. Making a success of the more affordable variants, called Standard, is important for Tesla and a test of its strategy for how to keep selling cars and bring in revenue as it transitions to making robotaxis and building humanoid robots, which are the core reasons investors value the company at $1.4 trillion. EV sales have taken a hit broadly since the end of September when the Trump administration ended $7,500 federal tax credits. To combat the fall in demand, Tesla in October launched stripped-down versions of its Model Y SUV and Model 3 compact sedan, priced about $5,000 below the previous base models.