Global stocks rebounded from recent declines as anxieties surrounding the AI trade began to ease, with Europe's benchmark index reaching an all-time high. S&P and Nasdaq futures saw gains in thin holiday trading, spurred by a recovery in South Korean memory giants SK Hynix and Samsung Electronics. Europe's utility and technology sectors were particularly strong, contributing to a second consecutive record close for the Stoxx 600. The dollar weakened to a two-week low, while gold extended its gains.This rebound follows a period of choppy trading as markets assessed the sustainability of the AI-driven rally. Investors are now anticipating the upcoming earnings season for further insights into AI infrastructure spending and profitability. Despite the recent volatility, Goldman Sachs equity strategists believe fundamentals remain strong and the market is underpricing the profit potential in memory stocks and the AI hardware supply chain.Gold and Bitcoin saw significant jumps as momentum trading faltered, reflecting a shift in investor sentiment. Gold reached a nearly two-week high, supported by lessened expectations for Federal Reserve interest rate hikes. Bitcoin also reversed its recent decline, trading above $62,000. The outlook for easier monetary policy continued to pressure the dollar, which was on track for its worst weekly performance in over a month.Concerns about inflation leading to further Fed tightening have diminished due to easing oil prices and slower US labor market growth. The first fully priced Federal Reserve rate hike has been pushed back to December. Analysts suggest the Fed will likely maintain a cautious approach to policy tightening unless inflation shows clearer signs of moderation.European stocks, while trading little changed on Friday, were poised for a fourth consecutive week of gains, driven by optimism about the Fed holding off on rate hikes. Notable stock movements included significant gains for Genfit, Pluxee, MIPS, AFRY, and Maersk, while Craneware and Stellantis experienced declines. Asian stocks also experienced a broad rally, led by South Korean semiconductor makers bouncing back from a sharp two-day slide. Weaker-than-expected US employment data and lower oil prices contributed to improved risk sentiment in Asia. The overall performance of Asia's benchmark index remains closely tied to a few key technology names. Looking ahead, markets will monitor upcoming central bank decisions and earnings reports from major companies in the region.