Here are 5 key events that drove the stock market last week

Stocks finished higher on Friday, driven by volatile AI trading, sending the market higher for the week. The S&P 500 gained 0.1% for the week, while the Nasdaq gained 0.5%. While recording three positive weeks in the last four weeks, indices were still modestly low for the seasonally strong month of December. What's kept investors guessing lately are concerns about AI funding issues at Oracle's data center projects and broader concerns about levels of AI-related spending. .SPX .IXIC 5D mountain S&P 500 and Nasdaq 5 session performance After sharp losses earlier in the week, the market rebounded on Thursday, with shares of Micron Technology rising 7% to record highs following the memory solutions provider's breakout the previous evening. Oracle bailed out on Friday, with its shares rising more than 6.5% after TikTok agreed to sell its U.S. operations to a new joint venture that includes the software and cloud infrastructure giant and private equity group Silver Lake. Oracle shares were down modestly for the week. Here are five key moments that drove the market last week. 1. AI chip makers Nvidia was one of our highlights on Friday, with shares of the leading AI chip brand finishing the week up 3.4%. The US government has launched a formal review that could result in the first shipment of Nvidia's second most powerful H200 chips to China. In terms of valuation, Nvidia is currently trading at 23.5 times fiscal 2027 earnings estimates. That's cheap for a stock with an average five-year multiple of over 70. That strength helped propel fellow Club Broadcom higher on Friday. But the custom chip designer couldn't overcome huge losses of 5.4% on Monday and Wednesday and for the week. 2. Nike earnings Nike posted better-than-expected earnings and revenue in the second quarter of fiscal 2026, and its turnaround gained momentum in North America. But worsening China sales and disappointing Q3 fiscal guidance sent the stock plunging 10.5% on Friday, capping four consecutive sessions of losses. Nike shares lost 13% for the week. Jim Cramer expressed confidence in CEO Elliott Hill's ability to right the ship, calling Nike's post-earnings stock decline a buying opportunity. Following Thursday evening's press release, we reiterated our buy-equivalent 1 rating but lowered our price target to $75 from $80. 3. Correction in Capital One We strengthened our position in Capital One on Friday, recording a solid 36% gain on shares purchased in March. Shares of the credit card issuer, which closed at a record high on Thursday, have gained 20% since the close on Nov. 20, outperforming the S&P 500's gain of about 3.5% in the same time period. The sale does not change our investment thesis. We remain bullish on Capital One through 2026, seeing the benefits of the Discover acquisition and increased share buybacks. The day before the trade, we raised our Capital One price target from $250 to $270. However, we lowered our rating to 2.4, the equivalent of hold. We added the Texas Roadhouse acquisition to our position in Texas Roadhouse on Wednesday. Despite the consumer narrative of weakening, the company remains a bright spot in the restaurant category. It has delivered consistent performance in comparable sales driven by its competitive pricing, despite offsetting headwinds from higher beer prices. 5. Cut at Costco On Tuesday, we cut our position in Costco in half as shares struggled in a tough retail environment. We decided to take action after the membership-only retailer delivered another mixed quarter on December 11, with renewal rates falling sequentially from the previous quarter in the first quarter of fiscal 2026. We are concerned that a slowdown in renewal rates will negatively impact earnings growth. The company's monthly sales also remain moderate with the decline in non-food purchases. We gained 200% on shares purchased in early 2020. (Jim Cramer's Charitable Trust is long NVDA, AVGO, NKE, COF, COST, TXRH. See here for a full list of stocks.) When you subscribe to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trading alert before buying or selling a stock in his charitable foundation's portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.