The FTSE 100 has reached a one-month high, while Wall Street is facing some issues. Tech stocks like Nvidia and Alphabet are down. Investors are worried about AI, leading them to shift their focus from tech to commodities, as they look for opportunities in potential US economic growth. **Netflix Partners with Warner Bros** Netflix is on the rise after Warner Bros announced a collaboration with the streaming service. This partnership aims to expand Netflix’s content, which is crucial for attracting and keeping subscribers. Netflix shares, previously at an eight-month low, now seem more appealing due to concerns about high tech valuations. There’s a clear divide between the UK and US markets. The optimism in the FTSE 100 is not reflected on Wall Street. The FTSE 100 has rallied over 4% in the last month, surpassing 8,450 for the first time since September. This difference suggests that it might be beneficial to focus on UK stocks rather than US tech for the rest of the year. The decline in major tech stocks, such as Nvidia and Alphabet, indicates a change in sentiment away from the AI-driven surge that dominated much of 2025. Nvidia’s stock has dropped 15% from its November highs, and options markets are anticipating higher volatility in the first quarter of 2026. This could be a good time to consider buying put options on tech-heavy indices or individual high-flying stocks to protect against further declines. This shift is directing investment towards commodities, which could benefit from improved US economic growth forecasts. Crude oil futures have climbed back above $90 a barrel for the first time since the supply cuts announced in the summer of 2024. Long positions using call options on energy and industrial metals ETFs look promising as we head into the new year. **Streaming Industry Update** The streaming landscape is undergoing a significant change, with the potential Warner Bros. and Netflix partnership emerging as a clear winner. Netflix shares have risen sharply from their recent lows, and the market views this as a big boost for its content library and subscriber growth. Call options on Netflix with a $650 strike price for February 2026 are seeing strong interest, signaling bullish sentiment. In contrast, Paramount is now facing challenges after being overlooked. The company’s shares dropped 18% following the news, raising concerns about its future strategy in a rapidly consolidating market. Buying puts on Paramount may be a wise move, anticipating further struggles as it competes. Create your live VT Markets account and start trading now.

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