The stock market experienced a volatile week characterized by a mix of record-highs early in the week, a subsequent retreat, and a focus on the start of fourth-quarter earnings season. We also had some geopolitical tensions as well as some policy-related volatility. While the S&P 500 and the Nasdaq posted slight weekly losses, small-cap stocks showed considerable strength.

The stock market rallied to record highs this week, with the Dow, the S&P 500, and the Russell 2000 leading the way higher more so than the Nasdaq, meaning this rally was driven by broad participation and not just the big tech stocks. We also saw positive sentiment from a weaker-than-expected jobs report suggesting potential Fed rate cuts, and all of this comes ahead of the new earnings season kicking off this week with the big banks set to report.

The S&P 500, the Nasdaq and the Dow all posted losses as 2025 wound down, partly due to profit-taking and a bit of weakness in the tech names. Overall, 2025 was a strong year for the market, with the S&P finishing the year up 16%, the Nasdaq up 20%, and Dow up 13%. Gold and silver rallied near the year’s end, with precious metals hitting highs before pulling back.

This past week, the stock market saw continued strength driven by AI enthusiasm (especially in chip stocks like Nvidia and AMD). Market strength was also driven by potential Fed rate cut hopes from softer inflation numbers as reported by the CPI, and rising precious metals (especially silver). Metals related stocks and ETFs rose in sympathy. FCX had a great week thanks to the rise in copper. GDX also saw substantial gains due to the rise in gold.

Last week in the stock market was marked by the resurgence of the AI trade, led by primarily by stocks like Nvidia and Oracle. Ther were some early-week jitters, but we had a strong finish late in the week, espoecially for tech stocks. We also saw a big drop and recovery for Nike, Micron beat on earnings, we had cooler-than-expected CPI data boosting sentiment, and we got a bit of corporate drama with Warner Bros. rejecting Paramount's bid, while cannabis stocks reacted to a Schedule III reclassification, and tech M&A activity picked up with IBM aquiring Confluence. Also, gold and silver neared record highs, while Bitcoin remained volatile but within a range.

This past week in the stock market was defined by a tech pullback, especially in AI, following weak guidance from Broadcom and concerns over Oracle's cloud/AI spending, leading to profit-taking in big tech like Nvidia, though the Dow and small-caps showed strength, hitting new highs as investors rotated into value/cyclical stocks. Also, the Federal Reserve's gave us that widely expected interest rate cut.

The markets have resumed their normal course--up and to the right! Markets are pricing in more Fed rate cuts, plus recent economic data regarding inflation has been positive. Both large caps and small caps are doing well. Tech and non-tech stocks are doing well. And Netflix bought Warner Brothers Discovery! Is now the time to get long NFLX?

Major U.S. stock indexes rallied for five straight sessions to close out a volatile November. Markets are now looking forward to a December rate cut. Also, early Black Friday sales figure showed a solid start to the holiday season. Plus, I look at some option trades that I'm considering for this week.