Weekly Market Recap | Dec 23 – Dec 29

IPO’s this week:

• Park Ha Biological Technology Co., Ltd. has gone public on Nasdaq with an initial public offering (IPO) of $4.00 per share, issuing 1,200,000 shares on December 27, 2024. The company specializes in skincare and cosmetic products, along with after-sales beauty services in physical stores, catering to customers in China.
• Translational Development Acquisition Corp. (TDACU) launched its initial public offering on the NASDAQ Global market, pricing 15,000,000 shares at $10.00 each, raising $150,000,000 on December 23, 2024. The company is a blank check entity seeking a business combination with one or more businesses.
• Health In Tech, Inc. (HIT) is set to go public on the NASDAQ Capital Market, offering 2,300,000 shares at $4.00 each. The company aims to raise $9,200,000 in its initial public offering, priced on December 23, 2024. HIT is an innovative insurance technology platform that provides technical solutions to transform and improve efficiency in the healthcare industry.

Markets Weekly:

1. The S&P 500 gained 30.59 points, marking a 0.51% increase.
2. The Russell 1000 ETF gained 1.86 points, a 0.57% increase.
3. The Russell 2000 gained 5.50 points, a 0.25% increase.
4. The CBOE Volatility Index fell 2.14 points, marking an 11.83% decline.
5. Bitcoin (BTC-USD) lost $934.53 (-0.98%) during the 5-day trading week.
6. Ethereum (ETH-USD) gained $51.41 (1.57%) during the 5-day trading week.
7. Gold gained $16.50 (0.63%) during the week.
8. Silver gained $0.08 (0.27%) during the week.
9. WTI (West Texas Intermediate) gained $0.86 (1.24%) during the 5 days.
10. Brent Crude Oil gained $0.98 (1.35%) during the week.

• The S&P 500 fell 1.1% and the Nasdaq 100 dropped 1.4% on Friday, led by a slide in the “Magnificent Seven” tech giants, trimming this week’s gains.
• Trump’s tariff threats are disrupting supply chains, prompting US and European companies to rush orders and raise prices, while Chinese factories seek new buyers.
• Tokenization is growing on Wall Street, with major firms like BlackRock, Visa, and Mastercard leading the way. It promises more liquidity and lower costs, but risks and regulatory challenges remain.
• The Federal Reserve cut rates by 25 basis points but signaled a slower pace of future cuts, surprising markets and causing a shift in investor expectations.
• Risks to Middle East crude flows are rising as tensions between Israel, the Houthis, and Saudi Arabia threaten oil supplies, with the situation now posing a greater risk to production.
• US bank stocks are expected to keep growing, with hedge funds increasing exposure by 50%. Analysts foresee record net interest income and strong earnings through 2025.
• Banks are entering the stablecoin market, previously led by Tether, to capitalize on profits. Institutions like Societe Generale and Revolut are launching their own stablecoins, fueled by new European regulations and potential US legislation.
• Options trading averages 48 million daily contracts in 2024, up 9% and on pace for a record, fueled by retail traders seeking high-risk bets.
• Gold rose 27% in 2024 to $2,617.20, outpacing the S&P 500. Wall Street predicts prices could hit $3,000 in 2025, driven by expected Fed rate cuts.
• Evolve Bank, managing $10 billion for fintechs like Stripe, faces turmoil after Synapse’s bankruptcy left over 100,000 customers unable to access funds in commingled accounts.
• Bond investors are cautious after two tough years, selling Treasurys and exiting long-term funds. With yields at two-year highs, many are shifting to short-term T-bills.
• Major U.S. banks, including JPMorgan and Bank of America, sued the Federal Reserve over a lack of transparency in stress testing, citing unpredictable capital volatility.
• Commerce Secretary Gina Raimondo emphasized U.S. investment over export controls to stay ahead of China in chip manufacturing.

Politics Weekly:

• Trump’s call for U.S.-led Bitcoin mining is unlikely as global players dominate the industry, with U.S. miners contributing less than 50% of network power.
• China removed military officials You Haitao and Li Pengcheng from parliament without explanation, continuing a leadership purge in its defense sector.
• Russia’s attack on Christmas Day with 70 missiles and 100 drones left 500,000 without heat in Kharkiv and forced power cuts across Ukraine.
• Trump has asked the U.S. Supreme Court to pause a law threatening to ban TikTok, seeking time to negotiate a resolution over national security concerns.
• South Korea’s parliament impeached Acting President Han Duc-k-soo, following Yoon’s suspension, worsening political instability and economic risks.
• Russian President Putin apologized to Azerbaijani President Aliyev after a December 25 Azerbaijan Airlines crash killed 38, with 29 survivors, some seriously injured.
• Gazprom will stop gas supplies to Moldova on January 1 due to a $709 million debt dispute with Moldovagaz. The halt will also affect the Transnistria region.
• Senegal’s Prime Minister Ousmane Sonko bypassed parliament to approve the 2025 budget, a 6.4 trillion CFA-franc ($10.2 billion) package. Opposition lawmakers have 24 hours to file a censure motion.
• Montenegro will extradite crypto founder Do Kwon to the U.S. over the $40 billion TerraUSD and Luna collapse in 2022.
• A Jeju Air Boeing 737-800 crashed in South Korea, killing 179 people. Two flight attendants survived, and investigators are looking into a possible bird strike.

Technology Advancements this Week:

• Alibaba and E-mart have announced plans to launch a joint online shopping venture. The two companies will merge the assets of AliExpress Korea and Gmarket, their respective e-commerce platforms, into a 50-50 joint venture. This partnership aims to create a more robust and competitive e-commerce platform in the market.
• Taiwan has blocked Uber’s planned acquisition of Foodpanda’s local business, citing competition concerns and dealing a blow to the US firm’s Asian expansion plans.
• China’s SMIC, the country’s largest chip maker, extends its rally. The surge is driven by growing enthusiasm for artificial intelligence (AI) and accelerated chip localization. Investor sentiment remains buoyant, fueling the company’s stock growth.
• Microsoft Integrates AI Assistant into 365 Subscription. The company has added Copilot to its service in multiple markets. This move comes with a price hike for subscribers.
• China’s artificial intelligence (AI) capabilities are rapidly advancing, with local startups employing innovative workarounds to challenge industry leaders like OpenAI, despite limitations in accessing cutting-edge chips.

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