Weekly Global Market Pulse – Fireworks on Wall Street, Fault Lines Abroad

Equity markets surged as the S&P 500 notched a third consecutive weekly gain, climbing 1.8% to a fresh all-time high. The Nasdaq Composite followed suit, while the Dow Jones Industrial Average advanced a modest 0.8%. Small-cap stocks outperformed, with the Russell 2000 jumping 3.4% as investors rotated out of megacap technology names. Sector performance was led by materials (+3.7%) and information technology (+2.6%), while communication services lagged (-0.24%). Nvidia's market capitalization approached $3.9 trillion, nearing Apple's record valuation.

European markets faced headwinds as the STOXX Europe 600 slipped 0.46% to 541, weighed down by middling PMI data and political uncertainty in the UK. In Asia, Japan's Nikkei 225 retreated 1.7% from its recent peak as profit-taking emerged near the 40,000 resistance level. South Korea's KOSPI gained approximately 2% on Optimism surrounding corporate governance reforms, while India's Nifty 50 edged 0.5% lower as heavyweight stocks cooled following record highs.

Commodity markets saw oil prices climb while Gold found support, reflecting the cautious tone across asset classes. Traders remained attuned to potential surprises from central banks, energy markets, and geopolitical developments. The week's muted IPO activity was offset by M&A speculation, particularly in Europe where Siemens gained ground after the US relaxed chip-software export restrictions.