The US stock market continues to set new records, pulling European markets higher in its wake. The S&P 500 is up 12% since the start of 2025, while the Stoxx Europe 600 has gained 9.4%. Yet European investors who piled into popular S&P 500 ETFs are seeing muted results, with the iShares Core S&P 500 ETF down 0.8% this year due to a 13% slide in the dollar against the euro—only currency-hedged ETFs have been spared. After weeks of sideways trading, Wall Street is regaining momentum, logging six gains in seven sessions. The Dow Jones closed above 46,000 for the first time, and the Nasdaq 100 touched 24,000 intraday, extending a record-breaking year for US equities.
 
The bullishness is fueled by expectations that the Federal Reserve will resume its rate-cutting cycle next week. Inflation for August came in line with forecasts, giving the Fed cover for a quarter-point cut, even if stronger-than-expected economic data ruled out a larger move. For investors, cheaper money is what matters, as markets continue to price in growth and shrug off risks. Corporate earnings season reinforced that sentiment: financial results are increasingly seen less as hard fundamentals and more as signals of future potential, helping justify lofty valuations.
 
Elsewhere, gold broke its inflation-adjusted record from 1980, Brazil’s Supreme Court sentenced Jair Bolsonaro to 27 years for plotting a coup after his 2022 defeat, and in France, Euronext will replace Teleperformance in the CAC40. The week in the US will close with consumer confidence data from the University of Michigan, due at 10:00 am today.

In Asia-Pacific, the weekend is looking bright. Index gains range from 0.3% in India to 1.5% in Hong Kong. Australia and Taiwan are up 0.7%, while South Korea is up more than 1%. In Japan, the Nikkei 225 closed up around 1.1%.

Today's economic highlights:

The UK monthly GDP (2:00 am) and the University of Michigan confidence index (10:00 am) close out the week. See the full agenda here.

  • Dollar index: 97,76
  • Gold: $3,648
  • Crude Oil (BRENT): $67.60 (WTI) $63.43
  • United States 10 years: 4.034%
  • BITCOIN: $114,915

In corporate news:

  • Apple will launch a blood pressure detection feature on its smartwatch next week after receiving FDA approval on Thursday, according to Bloomberg News.
  • Adobe raised its revenue and profit forecasts for fiscal 2025, signaling strong demand for its software and increased monetization of AI tools. Shares are up 2.9% in premarket trading.
  • Kenvue’s interim CEO, Kirk Perry, met with Robert F. Kennedy Jr. in an attempt to dissuade him from citing its flagship drug Tylenol as a potential cause of autism in an upcoming report, the Wall Street Journal reported.
  • Microsoft and OpenAI announced on Thursday that they had signed a non-binding agreement setting new terms for their partnership, allowing OpenAI to restructure as a for-profit company. The European Commission also said on Friday it had accepted remedies proposed by Microsoft to address competition concerns related to its Teams platform. Shares are up 1.1% in premarket trading.
  • Nvidia and OpenAI plan to invest several billion dollars in data centers in the United Kingdom during a visit by their CEOs next week, coinciding with the visit of US President Donald Trump, Bloomberg reported.
  • Super Micro Computer gained 5.4% in premarket trading after the AI server maker began shipping Nvidia’s Blackwell Ultra systems.
  • Warner Bros Discovery rose 5.5% in premarket trading, extending Wednesday’s 28% gain after a source said Paramount Skydance was preparing a takeover bid for the Hollywood studio.

Analyst Recommendations:

  • Air Products & Chemicals : Argus Research upgrades to buy from hold with a target price of USD 317.
  • Amphenol : Fox Advisors maintains its outperform recommendation and raises the target price from USD 130 to USD 145.
  • Applovin : Wedbush maintains its outperform rating and raises the target price from USD 620 to USD 725.
  • Arista Networks : Citi maintains its buy recommendation and raises the target price from USD 136 to USD 176. 
  • Carnival : Deutsche Bank maintains its hold recommendation and raises the target price from USD 28 to USD 33.
  • Casey's General Stores : NorthCoast Research maintains its buy recommendation and raises the target price from USD 540 to USD 580.
  • Constellation Brands : Barclays downgrades to market weight from overweight and reduces the target price from USD 202 to USD 150.
  • Eastman Chemical : Vertical Research Partners maintains its hold recommendation and reduces the target price from USD 75 to USD 73.
  • Flagstar Financial : Truist Securities maintains its hold recommendation and raises the target price from USD 12 to USD 13.50.
  • Icon : TD Cowen maintains its hold recommendation and reduces the target price from USD 209 to USD 183.
  • Kroger : HSBC maintains its hold recommendation and raises the target price from USD 75 to USD 80.
  • Medpace Holdings : TD Cowen maintains its sell recommendation and reduces the target price from USD 366 to USD 356.
  • Molson Coors Beverage : Barclays downgrades to underweight from equalweight with a price target raised from USD 49 to USD 50.
  • Mondelez International : BNP Paribas Exane maintains its outperform rating and reduces the target price from USD 77 to USD 75.
  • Ralph Lauren : Argus Research maintains its buy recommendation and raises the target price from USD 300 to USD 360.
  • Reddit : Guosen Securities maintains its outperform recommendation.
  • Standardaero : Barclays initiates an overweight recommendation with a target price of USD 32.
  • The Jm Smucker : Argus Research downgrades to hold from buy.
  • Thor Industries : Citi maintains its neutral recommendation and raises the target price from USD 100 to USD 112.