Weekly Market Recap | Dec 16 – Dec 22

Key Takeaways

US tech stocks, led by Tesla, have driven S&P 500 gains, with Tesla’s market cap nearing $1.4 trillion after a 73% surge since the presidential election. In contrast, European giants like Novo Nordisk and LVMH are set to end 2024 in the red.
The US economy grew at 3.1% in Q3, boosted by stronger consumer spending and exports, surpassing previous estimates. This signals continued economic strength, with consumer spending seeing its fastest rise since early 2023.
Russian President Vladimir Putin has offered talks with President-elect Donald Trump, while defending his Ukraine invasion. Meanwhile, the G-7 is considering lowering the oil price cap to curb Moscow’s war funding, and the UK is in talks with Australia to join the Global Combat Air Programme.
Federal Reserve Chair Jerome Powell has signaled a more cautious approach to rate cuts in 2025, surprising investors and causing stocks and bonds to plunge. The dollar soared to its highest since 2022, while 10-year Treasury yields hit a seven-month high.
Nvidia’s deal to buy Israel’s Run:ai has won unconditional EU approval, while Adobe faces concerns over competition from AI startups like OpenAI. Apple has canceled its iPhone hardware subscription service, and Chinese firms Hillhouse and CPE are planning Abu Dhabi offices, drawn by the UAE’s tax-free status and financial appeal.

IPO’s in the week

The Leishen Group, a China-based provider of clean-energy equipment and integrated solutions for the oil and gas industry, is set to go public. Founded in 2007, the company is committed to providing customers with high-performance, safe, and cost-effective energy solutions. Leishen Energy Holding will list on Nasdaq with an IPO price of $4.00, issuing 1,375,000 shares, effective December 19, 2024.
Youxin Technology, a provider of SaaS and PaaS platforms, has announced its IPO on Nasdaq, offering 2,300,000 shares at $4.50, dated December 20, 2024. The company’s platform enables retail enterprises to digitally transform their transaction-related activities, including distribution recording, store transaction tracking, and e-commerce solutions.
Range Capital Acquisition Corp. Announces IPO of 10,000,000 Shares at $10.00 Per Share on Nasdaq, Effective December 20, 2024. The company is a blank check company focused on effecting a merger, share exchange, asset acquisition, or other business combination with a target entity.
New Century Logistics, an international freight forwarding company and logistics service provider, has gone public with an initial public offering (IPO) listed on the Nasdaq stock exchange. The company, which serves direct shippers and other freight forwarders, priced its IPO at $4.00 per share, issuing 1,250,000 shares, with the transaction dated December 18, 2024.
YSX Tech, a Cayman Islands exempted company, announced its initial public offering (IPO) on Nasdaq. The company provides comprehensive business solutions mainly for insurance companies and brokerages in China through its variable interest entities. The IPO consists of 1,250,000 shares priced at $4.00, with a listing date of December 18, 2024.

Markets this week

The S&P 500 Index lost 132.94 points (-2.19%) during the week.
Russell 1000 lost $8.98 (-2.69%) during the week.
Russell 2000 lost 102.50 points (-4.37%) during the week.
CBOE Volatility Index gained 3.99 points (+27.77%) during the week.
Bitcoin (BTC-USD) lost $6,537.65 (-6.27%) during the week.
Ethereum (ETH-USD) lost $479.10 (-12.12%) during the week.
Gold lost $17.80 (-0.67%) during the week.
Silver lost $0.74 (-2.40%) during the week.
WTI (West Texas Intermediate) lost $1.86 (-2.60%) during the week.
Brent Crude Oil lost $1.92 (-2.58%) during the week.

Tesla shares have jumped 73% since the U.S. presidential election, turning a 2.3% annual loss into a 69% gain for 2024. The rally added $572 billion to its market cap, now near $1.4 trillion. This week, shares dipped 3.5% after a strong two-week run, amid broader market pressures.
Boeing CIO Susan Doniz has stepped down, with Dennis Eng named interim leader of IT & Data Analytics.
Adobe shares face their worst month in two years as weak forecasts spark concerns over competition from AI startups like OpenAI.
Chinese firms Hillhouse and CPE plan Abu Dhabi offices, joining Western peers drawn by the UAE’s tax-free status and financial appeal.
China’s property sector, in its fifth year of crisis, faces ongoing debt struggles, with bonds of firms like New World and Vanke deeply distressed.
Bond yields surge amid the steepest rate-cut cycle since 1989, with traders fearing continued struggles as the Fed slows easing in 2025.
European giants like Novo Nordisk and LVMH are set to end 2024 in the red, as US tech stocks drive S&P 500 gains, marking Europe’s worst performance relative to the S&P in 25 years.
The US economy grew at 3.1% in Q3, boosted by stronger consumer spending and exports, surpassing the previous estimate of 2.8%. Consumer spending saw its fastest rise since early 2023, signaling continued economic strength.
Apple has canceled its iPhone hardware subscription service, a project in development since 2022, and reassigned the team to other initiatives.
Stocks and bonds plunged after Federal Reserve Chair Jerome Powell signaled a more cautious approach to rate cuts in 2025, surprising investors. The dollar soared to its highest since 2022, while 10-year Treasury yields hit a seven-month high.
Italian authorities are probing CK Hutchison’s telecom unit for allegedly evading taxes during its €3.4 billion asset sale to Cellnex Telecom.
The euro is nearing parity with the US dollar again due to weak economic growth in Europe, low interest rates, political instability, and the threat of US tariffs.
The market reacted sharply to the Fed’s 25 basis point rate cut and raised inflation outlook for 2025, with bonds and gold also selling off.
India’s stock market is booming, driven by a shift towards equity investing, with analysts predicting it will become a major wealth engine, similar to the US in the 1990s.

Politics Weekly

Russian President Vladimir Putin offered talks with President-elect Donald Trump while defending his Ukraine invasion. Trump, set to take office on Jan. 20, has urged Ukraine’s Zelenskiy to consider a deal to end the war.
UK Prime Minister Keir Starmer voiced opposition to trade tariffs, emphasizing the need to preserve strong UK-US trade ties ahead of Trump’s proposed import duties
President-elect Donald Trump supports abolishing the debt ceiling, calling it the “smartest thing Congress could do,” according to an NBC News interview.
The G-7 is considering lowering the oil price cap from $60 to $40 or enforcing a full ban to curb Moscow’s war funding.
Fighting alongside Russia in Ukraine gives North Korea a chance to test its military strategies and equipment against forces using similar weapons to those of its rival.
Congress passed a stopgap bill with $100 billion for disaster and farm aid, signed by President Biden to prevent a shutdown.
President-elect Trump and Elon Musk-backed plan, including a debt-ceiling increase, was decisively rejected in a floor vote, reflecting bipartisan opposition.
Tucker Carlson and Donald Trump Jr. opposed Mike Pompeo’s potential appointment as defense secretary, citing his criticism of election fraud claims and the Jan. 6 Capitol riot.
The U.S. may ban TP-Link routers, which hold 65% of the market, over national security concerns tied to cyberattacks.
Donald Trump and SoftBank CEO Masayoshi Son announced a $100 billion U.S. investment plan, set to create 100,000 jobs in AI and emerging technologies over the next four years.
The U.K. is in talks with Australia to join the Global Combat Air Programme, a multinational project to develop a next-gen fighter jet rivaling the U.S. F-35. The U.K., Italy, and Japan have already partnered, aiming to launch a stealth, supersonic fighter by 2035.
Trump allies are concerned his mass deportation plans may be scaled back. While committed to targeting immigrants who crossed illegally, the president-elect’s team is focusing on those with criminal records.
Xi Jinping, despite being invited to Donald Trump’s inauguration, isn’t planning to attend but may send a senior official to represent him.
The Biden administration is revising overdraft fee rules, offering banks a $5 flat fee or cost-based caps. The change, aimed at limiting $35 fees, will take effect in October 2025.
President-elect Donald Trump called Panama Canal fees a “rip-off” on Truth Social, demanding lower rates or a return of the canal to the US.

Technology Advancements this week

In a significant development, OpenAI has unveiled its latest AI system, o3, which is slated to launch in early 2025. This move is seen as a major step forward in the company’s ongoing competition with Google in the AI space.
A US indictment has been filed against an Israeli national for allegedly collaborating with the LockBit hackers, a group known for extorting numerous high-profile companies, including Boeing and Royal Mail. The individual, who holds Israeli and Russian citizenship, was reportedly recruited through the Telegram chat app.
US President-elect Donald Trump is receiving widespread attention from tech CEOs, despite his previous criticism of the industry. Trump appears to be enjoying the company of wealthy executives, who are seeking to build relationships with the incoming administration.
The European Union has given unconditional approval to Nvidia’s acquisition of Israeli company Run:ai, citing no concerns about competition in the market. Run:ai has been a strategic partner with Nvidia since 2020, and the deal is expected to further strengthen their collaboration.
Google contract workers have secured a landmark union agreement with Accenture, their employer, that prohibits keystroke monitoring and safeguards their right to work remotely.
Amazon Delays Return-to-Office Mandate for Thousands of Workers Due to Space Constraints.
The US Supreme Court will hear TikTok’s challenge to a looming ban on January 10. The law requires TikTok to be sold by its Chinese parent company to avoid a US ban.
The US has launched an investigation into TP-Link, a China-founded router manufacturer, over concerns about national security. TP-Link dominates the home router market in the US, but its devices have been exploited in Chinese cyberattacks.
Instagram is projected to generate $32 billion in ad revenue, accounting for 50% of Meta’s US ad sales in 2025. This growth is driven by users spending most of their time watching videos on the platform.
Walmart’s stock has surged 78% this year, outpacing its retail competitors, both big and small. The company’s stock is on track for its best year since 1998, driven by market-share gains and profit growth.