In the United States, equity markets declined slightly last week following an unprecedented period of growth. The S&P 500 extended its winning streak to nine consecutive sessions through Tuesday, its longest run in over a year. All three major indices closed at record highs for a fifth consecutive trading day, a milestone not seen since 2017.
However, losses were driven primarily by companies linked to the AI sector, particularly Broadcom. The AI chipmaker saw its shares fall by 15% on Thursday despite reporting earnings that exceeded expectations. Investors were disappointed by the company’s forecast for AI chip revenues, which came in below market expectations, reigniting concerns about the pace and sustainability of AI-related investment. As a result, both the S&P 500 and NASDAQ erased gains made earlier in the week. The sell off deepened on Friday due to strong non farm payroll data which came in well ahead of estimates, increasing the likelihood of higher for longer rates. The NASDAQ had its worst day in a year, dropping 4% as a result. For the week, the S&P 500 and NASDAQ closed lower, declining by -2.38% and -4.25% respectively.
In corporate developments, Berkshire Hathaway made two significant investments last week as Greg Abel continues to put his stamp on the renowned investment company. Berkshire agreed to acquire Taylor Morrison Home Corporation, an American homebuilder operating across 12 US states. The $6.8 billion deal gives Berkshire a greater foothold in the housing market, complementing its existing ownership of Clayton Homes and one of the largest real estate brokerages in the United States. Perhaps more noteworthy, however, was the company’s increased commitment to Alphabet. Berkshire purchased $10 billion worth of shares in Google’s parent company, adding to the $16.6 billion stake it already held. This would make Alphabet one of the largest individual holdings in Berkshire’s portfolio.
Elsewhere, Wall Street trading firms saw revenues generated from trading activities increase by 45% in 2025 compared with 2024, highlighting their growing prominence within the financial sector. Firms such as Jane Street and Citadel Securities have benefited from the fact that major banks have largely withdrawn from proprietary trading since the 2008 Financial Crisis, as well as favourable market conditions. In particular, these firms have enjoyed substantial gains from proprietary trading, where they invest their own capital. Revenues from this segment rose by 60% across the major trading houses, reaching $84.3 billion in 2025. Trading firms have also benefited from an influx of retail investors in recent years, alongside soaring demand for exchange-traded funds (ETFs), which have become the preferred investment vehicle for many investors seeking exposure to public markets and other asset classes.
In technology, NVIDIA announced last week that it will, for the first time, launch a PC chip capable of running agentic AI workflows and acting as a personal “teammate”. The announcement is significant because it marks a departure from NVIDIA’s traditional dominance in the graphics processing unit (GPU) market and places the company in more direct competition with manufacturers such as Intel, Broadcom, and AMD. The move into PC chips suggests that the company, led by Jensen Huang, is looking beyond its core business for future revenue growth and aiming to evolve into a more diversified technology company capable of sustaining growth beyond the initial AI boom. The new superchip will combine NVIDIA’s Blackwell RTX GPU with a Grace central processing unit (CPU), offering all-day battery life and the ability to run demanding AI workloads. Notably, NVIDIA’s technology will be paired with Microsoft’s Windows operating system, with the first devices expected to become available by the end of 2026 and targeted at the premium end of the market. However, the company ultimately envisages a product family comprising around 30 laptop models and 10 desktop PCs aimed at the mass market.
Elsewhere, Meta is planning to launch AI agents for WhatsApp Business users. These agents will be capable of responding directly to customers, completing sales, and booking appointments. The initiative is also expected to provide Meta with a new revenue stream as the company seeks to diversify beyond its traditional advertising-based business model.
In Europe, equity markets delivered mixed performances over the week, with shares edging higher on Thursday following a more subdued start. Earlier in the week, European bourses were buffeted by the same energy and interest rate cross-currents that affected US markets. Sentiment was further impacted on Wednesday by the announcement of potential US tariffs, which could rise to 12.5% if implemented. The conflict in the Middle East also continued to weigh on investor confidence, despite a US-brokered ceasefire between Israel and Lebanon. For the week, the Euro Stoxx 50 closed 0.31% higher, while the STOXX Europe 600 finished -0.34% lower.
In the United Kingdom, the FTSE 100 traded broadly flat through the week, supported by gains among energy majors, with BP and Shell ranking among the index’s strongest performers. Mining stocks also benefited from a constructive backdrop in China, where economic activity remained resilient. However, declines in Asia-focused financial stocks, particularly HSBC and Prudential, weighed on the index. This followed reports in Hong Kong suggesting that the firms had suspended the opening of accounts for mainland Chinese residents. For the week, the FTSE 100 closed -0.15% lower.
