CNBC Daily Open: Small- and mid-caps stole the limelight last week

Winning week for markets 
Major U.S. indexes roseate connected Friday to end the week successful the green, contempt mega-cap stocks Nvidia and Alphabet shares dropping. Europe's determination Stoxx 600 precocious 1.18%. The banking index, which mislaid 2%, was the only assemblage to fall. Euro portion concern enactment was successful contraction territory in November aft remaining static successful October.  

Trump nominates Treasury secretary 
U.S. President-elect Donald Trump intends to nominate Scott Bessent, laminitis of the hedge money Key Square Group, arsenic his Treasury secretary. Like Trump, Bessent is successful favour of gradual tariffs and deregulation to enactment home concern and code commercialized imbalances. Bessent was chosen implicit erstwhile Fed Governor Kevin Warsh and backstage equity enforcement Marc Rowan. 

Amazon doubles concern successful Anthropic 
Amazon announced it would put an further $4 cardinal successful Anthropic, an artificial quality startup founded by ex-OpenAI employees. That brings Amazon's full backing successful Anthropic to $8 billion, though it volition stay a number investor, said Anthropic. The AI company's flagship merchandise is Claude, a chatbot similar OpenAI's ChatGPT. 

Climate woody astatine COP29 
At the COP29 clime league successful Azerbaijan, developed nations pledged to supply $300 cardinal annually to poorer countries to tackle clime change. This woody replaces an earlier committedness to supply $100 cardinal a year. Meanwhile, Sir Richard Branson, billionaire laminitis of Virgin, said that "we tin flooded clime change" if "everybody focused together." 

[PRO] Interest rates backmost successful focus 
This week, the October idiosyncratic depletion expenditures terms index, retired Wednesday, volition dominate attention.  "This mightiness beryllium 1 of the past large cardinal pieces of data" for the U.S. Federal Reserve earlier its December meeting, said a money manager. Minutes for the November gathering of the Federal Open Market Committee, releasing a time prior, volition springiness investors much penetration into the gait of aboriginal complaint cuts.  

Big-name tech and spot stocks faltered past week.  

Despite almost doubling its third-quarter revenue, compared with a twelvemonth earlier, Nvidia shares fell 3.2% connected Friday, capping disconnected a bumpy week during which the banal fluctuated betwixt the reddish and the green.  

Google-parent Alphabet, meanwhile, ended the week astir 5% little aft the U.S. Department of Justice recommended the institution divest its Chrome browser arsenic a remedy to its antitrust case. And Amazon, its Big Tech counterpart, retreated 3.4% during the week. 

That said, large indexes managed to reverse the erstwhile week's dip. The Dow Jones Industrial Average was 2% higher for the week and the S&P 500 and Nasdaq Composite some climbed astir 1.7%.  

Even though different Magnificent Seven stocks did lend to that, the indexes mostly person companies little successful the spotlight, similar Super Micro Company, to thank. 

Likewise, small-cap stocks, which person languished down their bigger cousins for years, look to beryllium staging a comeback arsenic involvement rates autumn and Trump is poised to reenter the White House. The Russell 2000 ended the week 4.5% higher, outperforming the supra 3 indexes.  

"Investors are rotating retired of the erstwhile precocious flyers of large-cap connection services and exertion and into different cyclical sectors of user discretionary, industrials, and financials, arsenic good arsenic mid- and small-cap stocks," said Sam Stovall, main concern strategist astatine CFRA Research.  

And bitcoin, erstwhile dismissed by astir mainstream investors and institutions arsenic an esoteric plaything that did not look to person immoderate inherent value, is adjacent to shattering the $100,000 ceiling. 

That said, this inversion isn't apt to last. "On the backmost of beardown expected gross maturation successful 2025, we support our affirmative presumption connected the AI compute manufacture and NVIDIA successful particular," UBS expert Sundeep Gantori wrote successful a Thursday note.  

Despite a impermanent dip, the AI play volition apt stay the main taxable for the markets adjacent year.  

— CNBC's Pia Singh, Alex Harring and Jesse Pound contributed to this report.