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The S&P 500 reached a record high, supported by broad sector gains, as the "Santa Claus rally" began. The Dow rose 0.35%, S&P 500 up 0.15%, and Nasdaq remained flat. Nike shares increased after Apple CEO's purchase, while Intel fell due to Nvidia's halted testing. Micron Technology hit a record high, and Dynavax surged after Sanofi's acquisition announcement. The U.S. economy showed mixed signals, with strong growth but declining consumer confidence.
The article discusses three major AI trends to watch in 2026 and how to invest in them. These trends include the rise of custom AI accelerators, advancements in on-device AI, and the development of AI agents. Companies like Alphabet, Amazon, Apple, Qualcomm, Salesforce, and Meta Platforms are highlighted for their roles in these trends. Investors are advised to consider stocks of companies like Broadcom, Marvell, and Qualcomm to capitalize on these opportunities.
JPMorgan predicts Amazon's growth in AI, AWS, and margins will drive stock growth in the next decade. The focus is shifting from e-commerce to AWS acceleration, AI-led share gains, and margin discipline. AWS growth is expected to re-accelerate with AI workloads and Amazon's expanding AI stack. AI is also improving efficiency in logistics, fulfillment, and advertising. Margin expansion is driven by regionalization, inventory placement, and same-day delivery infrastructure. Despite heavy AI investment, free cash flow is expected to improve in 2026 and 2027.
Waymo's self-driving taxis stalled during a San Francisco blackout, blocking traffic and stranding passengers. The company will update its software to better handle such situations. The blackout, caused by a substation fire, affected 130,000 customers. Waymo's system struggled with the surge in traffic light failures, leading to service suspension. The company is working on software improvements and emergency response plans with city officials.
Investors with significant capital have taken a bearish stance on Walmart (NASDAQ:WMT), as observed through unusual options trades. Benzinga's options scanner detected 10 uncommon trades, with a sentiment split of 40% bullish and 50% bearish. The trades involve a price window of $65.0 to $110.0. Analysts maintain positive ratings with target prices ranging from $117 to $130. Walmart's current trading volume is 3,584,191, with a price of $111.24. Earnings announcement is expected in 57 days.
