Dow, S&P 500, Nasdaq sink as data-packed last full week of trading kicks off

Tesla (TSLA) stock briefly touched its all-time high of $479.86 on Monday before dipping below that level after Tesla bull Dan Ives of Wedbush wrote that the “autonomous chapter” has begun for the EV maker. Tesla shares were trading around $476.85 at last check.

Yahoo Finance’s Pras Subramanian reports:

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Netflix (NFLX) stock rose less than 1% in premarket trading after the streaming company said its plans to take over Warner Bros. Discovery (WBD) remained intact despite Paramount Skydance’s (PSKY) hostile bid.

In a letter to employees on Monday, Netflix’s co-CEOs Greg Peters and Ted Sarandos said Paramount’s move was “entirely expected,” according to Reuters. The CEOs also stated that their deal was “solid” and that they expect to clear regulatory hurdles.

Netflix’s acquisition of Warner Bros. Discovery’s streaming and studios assets is expected to take 12 to 18 months to finalize.

Warner Bros. Discovery stock edged lower ahead of the opening bell, while Paramount Skydance shares moved 0.7% higher.

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Yahoo Finance’s Ines Ferré reports:

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OpenAI (OPAI.PVT) — the world’s most valuable startup — is the winner of Yahoo Finance’s 11th annual Company of the Year award.

Three years ago, the company released ChatGPT 3.5. It’s been at the center of the artificial intelligence boom ever since.

It’s hard to overstate the impact the company had on the investing narrative this year. OpenAI struck megadeals with Microsoft (MSFT), Oracle (ORCL), Advanced Micro Devices (AMD), and Nvidia (NVDA). Its deal with AMD, for instance, sent the chipmaker’s stock soaring 24% in one day.

OpenAI amassed $1.4 trillion in committed spending over the next eight years, and it converted to a for-profit company — with a potential trillion-dollar IPO on the horizon. OpenAI’s private company shares have surged 153% this year as it landed a $500 billion valuation, according to Yahoo Finance’s private company data.

“It’s been a year where we have really hit kind of this day one of the next phase for OpenAI,” CFO Sarah Friar told Yahoo Finance Executive Editor Brian Sozzi in an exclusive interview (video above). “And we’ve seen … a lot of the ecosystem really start to move toward us to help us create this future.”

However, with so much riding on OpenAI and artificial intelligence in the markets, there are some big overhanging questions about the private company.

First, can OpenAI’s growth keep up with its staggering valuation? OpenAI’s 2025 revenue was $13 billion. HSBC estimated that OpenAI will have a $207 billion funding gap by 2030, even if its revenue multiplies as projected.

Second, can OpenAI hold on to its first-mover advantage? Models from Google (GOOG), Anthropic (ANTH.PVT), and others have gained traction in the space, leading OpenAI founder Sam Altman to declare “code red” in an internal memo earlier this month. And the demand for cloud services has benefited Big Tech incumbents.

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Yahoo Finance’s Jake Conley takes a look at what investors need to know this week.

He reports:

With another 25 basis point cut in the rearview for the Federal Reserve, attention is likely to focus on machinations around the next Fed chair to replace Jerome Powell, with reports late Friday suggesting Trump sees either Kevin Hassett or Kevin Warsh being named to the post.

The week’s economic calendar will also continue to work through the backlog of delayed data from the government shutdown, with the November jobs report set for release on Tuesday and November inflation data due out Thursday morning.

In the corporate world, Wednesday will see Micron (MU) report quarterly results, while investors on Thursday will get results from Accenture (ACN), NIKE (NKE), FedEx (FDX), and Olive Garden owner Darden Restaurants (DRI).

… The Federal Open Market Committee’s quarter-point rate cut on Wednesday marked the third such rate cut in 2025 and the most divisive of the year among the committee, with three dissents split across both sides of the move.

Now, market attention is turning to the potential for 2026 cuts — the Fed is projecting only one — and the drama around who President Trump will choose to replace Chair Jay Powell when his term ends in May.

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A trading week that ended with a thud also marked a turning point,

Yahoo Finance’s Hamza Shaban reports:

A trading week that ended with a thud also marked a turning point. Markets showed signs that the next leg upward won’t require Big Tech to lead the way.

Muscular corporate results and outlooks from a broadened set of sectors have powered lofty expectations. Projected returns for the next year are driving the growth story, and the latest Fed rate cut has further emboldened a move into cyclical names.

“The first eight months of the year the market was dominated by momentum and AI plays; since then, the market has shifted as valuations, sustainability around margins, and debt controversy developed around the technology sector,” said Eric Teal, chief investment officer for Comerica Wealth Management, in a note on Thursday.

But weakened tech enthusiasm leaves space for investor sentiment and returns to improve.

And from the perspective of Wall Street bulls, the more muted mood reflects a moment for the market to catch its breath, and suggests there’s room for investors to continue the rally.

… Some weakness in the AI trade could spur other sectors to rise. As Thomas Shipp, head of equity research for LPL Financial, said in a note earlier this week, an increase in volatility and a retreat from the AI theme may be required for value stocks to outperform next year.

The broadening out will also be spurred on by an accommodating Fed, and a long period of small caps lagging behind their larger siblings, said Teal.

Read more here in the takeaway from Morning Brief.