Market Momentum Shifts as Tech Sector Leads the Charge
The US stock market witnessed a significant turnaround on Monday, driven by a resurgence in the tech sector. Tesla’s shares soared by as much as 8% following a Bloomberg report that President-elect Donald Trump’s team is looking to ease US rules for self-driving vehicles. This development has sparked optimism among investors, who are now eagerly awaiting Nvidia’s earnings report on Wednesday for insight into the strength of the AI trade.
Economic Outlook: A More Measured Year Ahead
Wall Street strategists are predicting a more subdued year for stocks in 2025, with BMO Capital Markets chief investment strategist Brian Belski initiating a 2025 year-end target of 6,700 for the S&P 500. This represents a 14% upside from Friday’s close. Morgan Stanley chief investment officer Mike Wilson has also issued a 12-month target of 6,500 for the S&P 500, representing a nearly 11% increase for the benchmark index over the next year.
Treasury Secretary Nomination: A Key Stumbling Block
The contest for Treasury Secretary is emerging as a key challenge in Donald Trump’s presidential transition. Candidates are rising and falling by the day, with top advisers making their arguments before millions of followers. The situation remains fluid, with no clear frontrunner emerging yet.
Oil Prices Surge on Production Halt
Oil prices jumped on Monday after crude production was halted at a massive oilfield in Norway due to a power outage. This development, combined with the Biden administration’s authorization of US-made long-range missiles in the Ukraine-Russia war, has added to surging prices. West Texas Intermediate (CL=F) futures rose more than 2.5% to hover above $68 per barrel, while Brent (BZ=F) traded just above $73.
Netflix Recovers from Technical Glitches
Netflix shares recovered from earlier losses on Monday after the streaming giant’s highly anticipated boxing event between heavyweight champion Mike Tyson and YouTube personality Jake Paul experienced technical glitches throughout the live broadcast. The issues have sparked concerns about the company’s ability to deliver other types of live programs, especially with the upcoming NFL Christmas Day games in just over a month.
Bitcoin Rebounds from Weekend Retreat
Bitcoin has rebounded from its biggest retreat since the election at the weekend, trading above $91,000 on Monday. The cryptocurrency has been a closely watched ‘Trump trade’, surging since Donald Trump’s presidential election win. Trump has promised pro-crypto incentives, including the creation of a bitcoin national stockpile.
Nvidia Stock Falls Ahead of Earnings
Nvidia shares fell more than 2.5% in early trading ahead of the AI chip giant’s quarterly results this week. Investors are assessing a report over the weekend from the Information claiming the company may have hit a snag with its next-generation Blackwell technology involving an overheating issue.
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