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Wall Street’s focus this week will be on the Federal Reserve’s final interest rate decision of the year. It will also be the penultimate full trading week of the year, and markets will hope to ride recent momentum into a strong year-end Santa Claus rally.
Traders widely expect the Fed on Wednesday to cut its key rate by another 25 basis points for a third straight monetary policy committee meeting. December rate cut odds have been on a bit of a roller-coaster ride since last month, but recent economic data has reinforced the chances. The Fed will get one final major update on the labor market in the form of the delayed October JOLTS report on Tuesday.
The earnings calendar is also active this week, headlined by Broadcom (AVGO), Costco (COST), Adobe (ADBE), and GameStop (GME).
For investors still reeling from Netflix’s (NFLX) blockbuster Warner Bros. (WBD) deal, this week could bring more M&A history as Electronic Arts (EA) shareholders are set to vote on Wednesday on a $55B acquisition offer from Saudi Arabia’s sovereign wealth fund. If approved, it would be the largest leveraged buyout in history.
Earnings
Earnings spotlight: Monday, December 8: Toll Brothers (TOL), Compass Minerals (CMP). See the full earnings calendar.
Earnings spotlight: Tuesday, December 9: AutoZone (AZO), GameStop (GME), Campbell’s (CPB). See the full earnings calendar.
Earnings spotlight: Wednesday, December 10: Oracle (ORCL), Adobe (ADBE), Daktronics (DAKT). See the full earnings calendar.
Earnings spotlight: Thursday, December 11: Broadcom (AVGO), Costco (COST), lululemon athletica (LULU). See the full earnings calendar.
Earnings spotlight: Friday, December 12: Johnson Outdoors (JOUT), Zedge (ZDGE). See the full earnings calendar.
Victor Dergunov founded the Investing Group The Financial Prophet in 2017 to share his investing philosophy and help members make smarter, more confident investment decisions. With over 20 years of hands-on experience across stocks, commodities, and crypto, he brings a well-rounded perspective to the markets. From major names like Apple and Tesla to alternative opportunities, Victor provides actionable insights designed to help investors build diversified, high-conviction portfolios.
Here are his latest takes:(Full Podcast – Free access) Victor Dergunov emphasized that his main focus right now is risk management after a very strong year, with his all-weather portfolio up roughly 73%. While he remains bullish on AI long term, he believes markets have become overheated due to retail-driven rallies, stretched valuations, and hawkish signals from the Federal Reserve. He views Palantir as a great company but dangerously overvalued, which led him to trim and eventually short the stock despite being an early long-time bull. In his view, valuation always matters, even in industry leaders. Victor also warned of froth across AI-related stocks and expects a healthy market correction due to limited near-term catalysts and growing macro uncertainty. As a result, he has increased cash, added hedges, and positioned more defensively while waiting for better entry points.
(Full Article – Free access) Victor Dergunov believes fears of an “AI bubble” are overstated and expects AI to grow in cycles rather than collapse suddenly. He views the recent sell-off in AI and momentum stocks as a healthy correction that reset valuations without damaging the underlying fundamentals. In his view, earnings remain solid, inflation is easing, and the Federal Reserve is likely to cut rates, creating a supportive backdrop for risk assets. He also points to strong global AI investment, government initiatives such as the Genesis Mission, and continued hyperscaler spending as reasons for optimism. While he acknowledges concerns around circular financing, he does not see it as an immediate warning sign. Overall, he considers the pullback a buying opportunity and expects markets to trend higher into 2026.
Join Victor Dergunov’s The Financial Prophet to master a disciplined, high-conviction investing approach focused on growth and risk management. Start with a 14-day free trial, then continue at a discounted price of $539.10. Get access to Victor’s real-money portfolios, AI and tech insights, market-timing strategies, and ongoing risk guidance – trusted by 800+ subscribers to invest with confidence and clarity. Learn more >>
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