The S&P 500 was up to kick off the holiday trading week bolstered by AI firms like Nvidia, which is reportedly preparing to ship its H200 chips to China by mid-February 2026. Analysts at Jefferies have named Nike a top sector pick for 2026 due to its strong brand, efficient inventory management, and flexible supply chains, even though the stock has witnessed a decline recently amid weakening China sales.
The role of AI-based firms has been notable, with electric vehicle maker Tesla rallying 22% in 2025 alongside Alphabet and Nvidia, outperforming the S&P 500. Tesla is expected to close the year with significant gains. Investment in gold has also been recommended over bitcoin as prices of the former have jumped approximately 70% since the start of 2025.
In the insurance sector, Chubb (CB) is expected to have a bullish run in 2026 following a breakout above resistance at its 2024 peak, with a long-term target of approximately $380 for next year.
Warner Bros. Discovery (WBD) shareholders are deliberating between accepting Paramount’s $30 per share all-cash offer for the entire company or sticking with the initial Netflix deal for the Warner Bros. film studio and HBO Max wherein shareholders will receive 16% equity.
Large market movements include Dominion Energy whose shares fell around 5% after the Trump administration halted five East Coast wind projects, including Dominion Energy’s Coastal Virginia Offshore Wind, affecting the energy sector performance significantly. Nike’s stock dropped a further 2.5%, adding to the 10.5% fall it experienced in a recent post-earnings sell-off.
Additionally, the stocks of Paramount, Rocket Lab, and Stanley Black & Decker were among the ones that experienced considerable fluctuations in midday trading.
Sources:
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