GoAI Market Wrap - 24th Dec

Stock Market  

On Tuesday (Dec 23), U.S. stocks continued strengthening intraday, with all three major indices rising for the fourth consecutive day. The S&P 500 closed at a new high.  

 

At the close, the S&P 500 Index rose 0.46% to 6,909.79 points — surpassing the December 11 record high; the Dow Jones Index rose 0.16% to 48,442.41 points; the Nasdaq Composite Index rose 0.57% to 23,561.84 points.  

 

The “fear gauge” VIX continued lower, closing at 14 — the lowest in a year.  

 

Mega-cap tech stocks broadly strengthened, with Nvidia up over 3%, Broadcom up over 2%, Google and Amazon up over 1% — driving the Nasdaq to outperform the Dow and S&P.  

 

Pre-market, the U.S. Commerce Department’s initial estimate showed Q3 GDP annualized growth at 4.3% — above Q2’s 3.8% and the expected 3.2%.  

 

Influenced by the data, market expectations for Fed rate cuts next year moderated, causing early weakness before a rebound.  

 

eToro analyst Bret Kenwell commented that despite strong growth, ordinary people may feel differently — consumer confidence reports prove this.  

 

Kenwell said: “If consumer spending holds resilient through the holidays and Q4, it should be positive for GDP. Corporate earnings continue exceeding expectations — bulls hope this trend persists.”  

 

Apollo Wealth Management CIO Eric Sterner said: “The odds of a Fed cut early next year may be lower, but we’ll soon know who Trump nominates as new chair — almost certainly someone more dovish than Powell.”  

 

Earlier intraday, Trump said anyone disagreeing with his views will never be Fed chair. He wants the new chair to lower rates when markets perform well, not “destroy” them for no reason.  

 

Wednesday, U.S. stocks close three hours early; the highly anticipated “Santa Claus rally” begins, with a full closure Thursday. Bespoke Investment Group notes post-Christmas trading days are historically the year’s most consistent upside periods.  

Global Hotspots  

Trump: Those disagreeing with my views will never be Fed chair  

 

President Trump said on the 23rd local time that anyone disagreeing with his views will never be Fed chair. Trump said he wants the new Fed chair to lower rates when markets perform well, not “destroy” them for no reason.  

 

Powell’s term ends in May next year. By law, the President nominates the Fed chair, subject to Senate confirmation. Despite prolonged intense criticism from Trump over rate cuts, Powell has refused to resign and emphasized Fed monetary policy independence.  

 

Trump recently said in interviews that former Fed Governor Kevin Warsh tops his list for next Fed chair. He also said both Warsh and NEC Director Kevin Hassett are good.  

 

Bessent: Fed’s 2% inflation target open for discussion – could become a range  

 

Treasury Secretary Bessent supports reviewing the Fed’s 2% inflation target once inflation steadily returns. Bessent suggested turning it into a range like 1.5%–2.5% or 1%–3% once re-anchored. Bessent acknowledged public cost-of-living concerns, saying “we understand Americans are suffering” and blaming high prices on the Biden administration.  

 

U.S. Q3 growth 4.3% – fastest in two years  

 

Driven by resilient consumer and business spending, U.S. economy grew at the fastest pace in two years in Q3. The Bureau of Economic Analysis report Tuesday showed inflation-adjusted Q3 GDP annualized at 4.3%. Q2 was 3.8%, also consumer-driven.

 

The BEA originally planned an initial Q3 estimate October 30 but canceled due to the government shutdown. It typically releases three quarterly estimates, refining with more data, but for this pre-shutdown quarter, only two estimates.  

 

Japan’s new fiscal year budget and defense budget likely both record highs  

 

Japan’s FY2026 budget draft is nearing completion, with total expected at ¥122 trillion— a new record. Details show defense budget at ¥9 trillion (~RMB 405.6 billion) — also a record initial annual defense budget. The Finance Ministry will consult departments December 23–24 and finalize at a December 26 cabinet meeting.  

 

South Korea’s first commercial rocket launch fails  

 

South Korea’s first commercial rocket “Hanbit-NANO” appeared to disintegrate and explode shortly after launch Tuesday morning at Brazil’s Alcantara Launch Center — the launch failed.  

Corporate News  

Nvidia to hold closed-door summit next week to tackle AI-era power shortage crisis  

 

Market sources say Nvidia will host a closed-door summit next week aimed at solving the increasingly severe power shortage in the AI era.

 

Earlier this month, Morgan Stanley raised its 2025–2028 U.S. data-center cumulative power shortfall estimate from 44 GW to 47 GW — equivalent to the electricity consumption of 9 Miamis or 15 Philadelphias.  

 

TSMC Japan second fab may shift to 4nm chips to meet AI demand  

 

TSMC is considering producing more advanced 4nm chips at its second Japan fab to address surging AI demand. Three sources say the potential shift from originally planned 6/7nm could delay construction and require design changes.

 

The fab, located in Kumamoto prefecture next to TSMC’s first Japan plant, began construction in late October and is slated for production in 2027.  

 

Australia’s under-16 social media ban takes effect – Reddit sues communications minister  

 

Australia’s social media ban for those under 16 officially took effect December 10.

 

Reddit filed a lawsuit in Australia’s High Court against Federal Communications Minister Anika Wells, arguing the law infringes privacy and political communication. Reddit claims in court filings the ban should be declared invalid for interfering with implied freedom of political communication in the Australian Constitution.  

 

Indian official: Brookfield to invest $1B in Mumbai global capability center  

 

Maharashtra Chief Minister Devendra Fadnavis posted on X on December 12 local time that asset manager Brookfield will invest $1 billion to build a global capability center in Mumbai, with an agreement to be signed soon. The project is expected to create 15,000 direct jobs and 30,000 indirect jobs.  

 

JD.com recruiting on-device AI chip talent  

 

JD.com is hiring talent in on-device AI chips, mainly focused on compute-in-memory AI chips for robots, smart appliances, and other hardware endpoints.

 

Job postings show salaries of 40–100K RMB × 20 months for compute-in-memory chip design engineers. JD.com has not responded.

 

Xiaopeng Motors: Firmly opposes any form of price fraud and unfair competition  

 

Xiaopeng Motors issued a statement supporting the Auto Industry Price Behavior Compliance Guidelines, pledging to thoroughly review and continuously optimize its pricing management and compliance system to ensure transparency and standardization from product pricing to sales services.

 

The company vows to strictly adhere to clear pricing, protect consumer rights to information and choice, and firmly oppose any form of price fraud or unfair competition.  

Forex & Commodities  

WTI crude futures settled up 0.64% at $58.38 per barrel; Brent crude futures up 0.50% at $62.38 per barrel.  

 

International gold and silver continue new highs. COMEX gold futures up 1.02% at $4,515 per ounce; COMEX silver futures up 4.44% at $71.61 per ounce.  

Key Events  

Gold rally not over yet – JPMorgan bullish: Could hit $6,000 by end-next year!  

 

This year, gold’s dazzling performance surprised many — up over 70% YTD. As 2026 approaches, investors care more about next year’s outlook.  

 

Wall Street veteran Ed Yardeni, founder of Yardeni Research, offers the latest answer: “Prepare for even higher gold prices in 2026!”  

 

He sharply raised his end-2026 gold target from $5,000/oz to $6,000/oz.  

 

In a latest client report: “When gold broke $3,000/oz early this year, we forecast $4,000 by year-end and $5,000 by end-next year.”  

 

“But now gold is above $4,500. We raise our end-2026 target to $6,000. We still expect $10,000 by end-2029.”  

Cryptocurrency  

Bitcoin 24h −1.06% to $87,621.16.  

 

Ethereum −1.67% to $2,968.88.  

 

XRP −1.39%, BNB −1.38%, Solana −2.21%.  

 

Dogecoin −2.12%, Cardano −1.58%.  

Key Events  

Strategy adds cash reserves and pauses Bitcoin purchases  

 

Strategy Inc. increased cash reserves to $2.19 billion and paused Bitcoin purchases last week. As the largest digital asset treasury company, it appears preparing for a prolonged crypto winter. Per Monday SEC filing, the Virginia-based firm raised $748 million last week via common stock sales.

 

In the prior two weeks, it bought ~$2 billion Bitcoin, bringing total holdings to ~$60 billion.