Stocks Close Higher as AI, Drugmakers and TikTok JV Lift Markets
U.S. stocks ended the week on a strong note, helped by gains in AI shares, a new pricing deal with drug companies, and a major win for Oracle. The Nasdaq 100 (NDX) rose 1.3%, the S&P 500 (SPX) added 0.88%, and the Dow Jones Industrial Average (DJIA) climbed 0.38%. The 10-year Treasury yield edged up to 4.15% while Bitcoin (BTC) gained 2.7% to $88,316. Gold (XAUUSD)settled just above $4,368, and oil (Oil – US Crude) rose to $56.51 per barrel. The market also saw a record options event on Friday. More than $7.1 trillion in notional contracts expired in a quarterly event known as “quadruple witching.” Traders pointed to this as a reason for higher volumes and more swings in the last trading hours of the week.
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AI Trade Picks Up Steam Again
Technology shares helped lift the market after a shaky stretch. Oracle Corporation (ORCL) jumped over 6% after it signed a deal to co-lead TikTok’s U.S. operations through a new joint venture. The agreement also covers handling U.S. user data and security audits, which helped ease concerns about the app’s shutdown.
Nvidia (NVDA) also rose more than 4% after reports said the White House may allow sales of its H200 AI chips to approved companies in China. The news boosted confidence in the AI trade, which had recently cooled off.
Micron Technology (MU) extended its rally after giving a strong forecast, adding another 7% on top of its 10% gain from the day before. The chipmaker said it expects healthy demand for memory products tied to AI systems.
Meanwhile, AI-linked data center providers also bounced; CoreWeave (CRWV), Nebius (NBIS), Cipher Mining (CIFR), and IREN (IREN) all rose sharply, with CoreWeave up over 20% for the day.
Drugmakers Cut Deals, Health Insurers Dip
Nine major pharmaceutical companies, including Amgen (AMGN), Merck (MRK), GSK (GSK), and Sanofi (SNY), signed a pricing deal with the White House. Under the agreement, they will offer select drugs at Most-Favored-Nation prices for Medicaid and list those prices on a new government portal called TrumpRx. In return, they will get a three-year pause on new tariffs and commit to $150 billion in U.S. investment.
Health insurers moved lower after President Trump said he would call a meeting to push them to reduce premiums. Shares of Humana (HUM), UnitedHealth (UNH), Cigna (CI), and Elevance Health (ELV) all fell slightly following the comments.
Cannabis Reclassification and Crypto Progress
The White House has made moves in other industries as well this week, as it issued an executive order to reclassify marijuana as a Schedule III drug. That would make it easier for cannabis firms to access banking services and lower their taxes. The AdvisorShares Pure U.S. Cannabis ETF (MSOS) rose on the news, despite a brief selloff driven by trading volatility.
Stocks That Made the Week
Rivian Automotive (RIVN) rallied 10% on Friday and is up double digits for the second straight day. The electric vehicle maker got price target hikes from analysts at Wedbush and Baird, who praised its lower-cost R2 launch and plans for autonomy. The company also teased a future robotaxi product.
Carnival Corporation (CCL) gained nearly 10% after its earnings beat expectations and the company provided a strong 2026 outlook. It also reinstated its dividend, helping the stock reach its highest level in over a year.
iRobot (IRBT) filed for Chapter 11 bankruptcy, marking the end of the road for the Roomba maker. The move came after Amazon (AMZN) abandoned its plan to buy the company earlier this year due to regulatory hurdles. iRobot now owes about $190 million and is being taken over by its overseas manufacturer. The case drew attention as a warning sign for small tech firms relying on Big Tech acquisitions as exit strategies.
Nike (NKE) slid over 10% after reporting weak sales in China and warning about lower margins. The company also said its direct-to-consumer model faced headwinds. Tariffs added pressure to its costs, dragging down investor confidence.
Lyft (LYFT) dropped more than 2% after a downgrade from Wedbush. The firm warned that the rise of autonomous vehicles and robotaxis could be a long-term risk to the ride-hailing business model.
The Week Ahead
Markets will enter the final stretch of the year with a possible Santa Claus rally in sight. Investors will keep a close eye on any updates around TikTok’s U.S. joint venture, AI chip approvals for China, and follow-through on drug pricing deals.
Cannabis stocks may stay volatile as traders digest the policy shift and look for signs of institutional inflows. With earnings season slowing, macro headlines, rate expectations, and policy moves will take the lead.
Despite the swings, analysts see room for a strong finish to 2025. Many investors are positioning for lower rates, lighter tariffs, and a solid growth backdrop in early 2026.
Upcoming Earnings and Dividend Announcements
The calendar is light this week, with only a few small- and mid-cap names reporting and limited activity on the dividend front as markets ease into the final days of December.
Earnings Preview
On Monday, Red Cat Holdings (RCAT), Ennis (EBF), and Maison Solutions (MSS) are set to report. Forecasts call for an EPS loss of $0.07 and $25.18 million in revenue for Red Cat. Ennis is expected to earn $0.41 per share on $100.50 million in revenue, while Maison Solutions is forecasted to break even with $29.50 million in sales.
On Tuesday, USBC (USBC) and Limoneira Co (LMNR) are due. USBC already posted an EPS loss of $0.032. Limoneira is expected to report a loss of $0.11 per share with revenue projected at $35.35 million.
There are no major reports scheduled beyond Tuesday, making this one of the quietest earnings stretches of the month.
Ex-Dividend Dates This Week
Dividend activity also slows this week, with only a few mega-cap names trading ex-dividend starting December 22. Below are the key names:
Ex-dividend Date December 22, 2025:
- Broadcom (AVGO) will pay $0.65 in 11 days, with a 0.69% yield and a Smart Score of 10
- Vistra Energy (VST) is set to return $0.23 in 11 days, yielding 0.55%
- Johnson Controls (JCI) will distribute $0.40 in 27 days, yielding 1.26%
- Cincinnati Financial (CINF) will pay $0.87 in 26 days
- Elbit Systems (ESLT) will distribute $0.75 in 16 days
- Lamar Advertising (LAMR) will return $1.80 in 11 days
Ex-dividend Date December 23, 2025:
- Restaurant Brands International (QSR) will pay $0.62 in 17 days
- Invitation Homes (INVH) will return $0.30 in 27 days
Ex-dividend Date December 24, 2025:
- Seagate Technology (STX) will pay $0.74 in 20 days
- Banco de Sabadell (BNDSF) will return $0.07 in 9 days
Ex-dividend Date December 26, 2025:
- Altria Group (MO) will pay $1.06 in 20 days, with a yield of 7.09%
- Philip Morris (PM) will return $1.47 in 25 days
- Petroleo Brasileiro (PBR) will pay $0.31 in 3 months
- Medtronic (MDT) will return $0.71 in 27 days
- Royal Caribbean (RCL) will pay $1.00 in 25 days
- Danaher (DHR) will distribute $0.32 next month
- Southwest Airlines (LUV) will pay $0.18 in 27 days
Investors tracking income opportunities should note that most payments will be made in mid-to-late January, with payout ratios ranging widely across sectors.