In the United States, equity markets were volatile last week, with a range of factors driving markets both higher and lower. Pressure stemmed from concerns over new tariffs and the future direction of US trade policy, alongside continued worries about AI valuations and their impact on the software sector. However, markets traded higher on Tuesday and Wednesday ahead of NVIDIA’s earnings release, before declining on Thursday as AI-related concerns re-emerged. Geopolitical risks also remained present, as the US and Iran met in Geneva to discuss nuclear treaty negotiations before the conflict begun on Saturday. For the week, the S&P 500 and NASDAQ closed -0.30% and -0.43% lower, respectively.
In earnings, NVIDIA, the world’s largest publicly traded company, reported results last Wednesday. The semiconductor leader comfortably exceeded expectations, posting revenues of $68.1bn compared with forecasts of $66.21bn. Revenues rose by 73% year on year, while net income doubled to $43bn. More than 90% of quarterly revenue came from its Data Centre segment, which generated $62.3bn, representing a 75% annual increase. Forward guidance also exceeded expectations. However, despite these strong results, shares declined by 5% on Thursday, as ongoing concerns surrounding the pace and sustainability of AI investment weighed on sentiment. Broader concerns about the long-term outlook for software companies in an AI-driven environment also contributed to the decline.
In corporate developments, the Warner Bros. Discovery takeover saga reached its conclusion last week, with Paramount Skydance submitting an improved offer for the studio. On Tuesday, it was revealed that Paramount, backed by the Ellison family of Oracle, had raised its offer, potentially placing Warner Bros.’ existing agreement with Netflix in doubt. The revised offer of $31 per share in cash also included higher termination fees should the deal fail to gain regulatory approval, as well as a “ticking fee”, under which shareholders would receive a quarterly payment for each quarter beyond 30 September that the deal remains incomplete. The $31 per share offer represents a significant premium to Netflix’s $27.75 offer. The offer proved to be too much for Netflix, who, after almost four months of negotiations walked away from the table on Friday.
In technology, Meta, which has increased its data centre capital expenditure to record levels in 2026, agreed a multibillion-dollar deal with chipmaker AMD, which could eventually see Meta acquire up to a 10% stake in the company. Under the agreement, AMD will provide customised chips with a total capacity of six gigawatts to support Meta’s expanding data centre infrastructure. The deal also includes a performance-based warrant, allowing Meta to purchase AMD shares at a predetermined price based on future chip orders. Such arrangements, where major technology firms acquire strategic stakes in semiconductor companies, are becoming increasingly common as AI and semiconductor ecosystems become more integrated. Elsewhere, Anthropic, which has recently attracted attention following the release of its new AI chatbot, has entered into a dispute with the Pentagon over the use of its technology. The company has reportedly refused government requests to remove safeguards that would enable its systems to be used for autonomous weapons targeting and domestic surveillance. This could result in regulatory or legislative action and represents one of the first significant tests of relations between Silicon Valley and the US government regarding the military and surveillance applications of AI.
In Europe, equities moved higher last week, supported by strong corporate earnings, with both the Euro Stoxx 50 and STOXX Europe 600 reaching record highs on Wednesday. However, markets faced some pressure following President Trump’s announcement of new 10% tariffs. Technology companies, including ASML, also declined later in the week after NVIDIA’s results triggered broader weakness across semiconductor-related stocks, despite the company exceeding expectations. For the week, the Euro Stoxx 50 and STOXX Europe 600 closed 0.56% and 0.91% higher, respectively.
In corporate developments, Novo Nordisk announced plans to halve the US price of its Wegovy weight-loss drug beginning in January 2027, as the Danish pharmaceutical company faces increasing competition from Eli Lilly. Under the revised pricing, Wegovy will be sold at approximately $675 per month wholesale, significantly below the cost of Eli Lilly’s competing drug, Zepbound, which exceeds $1,000 per month.
In the United Kingdom, the FTSE 100 reached record highs on both Tuesday and Thursday, supported by continued strength in the financial sector, particularly HSBC, which reached an all-time high, as well as strong earnings from major companies such as Rolls-Royce. For the week, the FTSE 100 closed 2.31% higher.
In corporate developments, GSK agreed last week to acquire Canadian-based biotechnology firm 35Pharma for $950m in cash. The company specialises in treatments for cardiovascular and respiratory diseases, with its lead candidate, HS235, showing potential in the treatment of pulmonary arterial hypertension, a serious and progressive condition. The acquisition represents GSK’s second transaction of 2026 and comes shortly after new CEO Luke Miels assumed the role in January.
