Good Morning!
On the final day of 2024, the S&P 500 closed at 5,881, down 0.43%, while the NASDAQ recorded a decline of 0.9% to 19,310. The Dow Jones Industrial Average retreated to 42,544, down 0.69%. The Russell 2000, however, edged up 0.11%, closing the day at 2,230.
Crypto Highlights
Bitcoin (BTC): Currently trading at $97,144, up 2.8% over the past 24 hours.
Ethereum (ETH): Rose to $3,486 per coin, up 3.87%.
Solana (SOL): Gained 9.77% in the last day, currently at $208.12.
Ripple (XRP): Jumped 11% in the last 24 hours at $2.40 per coin.
Stellar (XLM): Rose by 14% to $0.431 per token.
XRP closed the year above the all-important $2 mark for the first time in its history reflecting a bullish trend.
Upcoming Earnings
There are no significant earnings announcements scheduled for today.
Headlines
Cybertruck Explosion Outside Trump Hotel in Las Vegas Leaves One Dead, Seven Injured
A Tesla Cybertruck exploded outside the Trump International Hotel in Las Vegas on Wednesday, killing the driver and injuring at least seven others. Authorities discovered gas canisters, camp fuel, and firework mortars in the truck's bed.
The Cybertruck, rented via Turo, arrived in Las Vegas shortly before the explosion. Tesla CEO Elon Musk stated that the vehicle operated correctly and attributed the blast to fireworks or a bomb in the truck's cargo. Investigators are tracing the vehicle’s movements and renter history but have not disclosed the identity of the person who rented the truck.
US Mortgage Rates Climb to Six-Month High, Dampening Demand
US mortgage rates rose to their highest level since early July during the Christmas holiday week, curbing demand for home purchases and refinancing. The contract rate on a 30-year fixed mortgage increased 8 basis points to 6.97% for the week ending Dec. 27, following a 14-basis-point rise the prior week, according to the Mortgage Bankers Association (MBA).
Applications for home purchases fell nearly 7% to their lowest level since mid-November, while refinancing activity dropped over 23% to a one-year low.
Euro Falls to Weakest Level Against Dollar Since 2022
The euro slid to its lowest level against the dollar in over two years, reaching $1.0314 on Thursday, amid concerns about Europe's economic prospects. This marks an 8% decline since late September. The pound also dropped to an eight-month low, weighed down by weak UK growth and heightened recession fears.
Fears of US trade tariffs, political instability in major EU economies, and expectations of aggressive European Central Bank (ECB) rate cuts relative to the Federal Reserve have pressured the euro. Strategists predict the currency could reach parity with the dollar by mid-2025, a threshold last seen during the 2022 energy crisis. Compounding these challenges, Russian gas flows to Europe via Ukraine were halted, intensifying energy supply concerns as winter storage depletes rapidly.
VLCCs Poised for Gains Amid Geopolitical Uncertainty in 2025
Very Large Crude Carriers (VLCCs) are set to benefit from a potential squeeze on Iranian oil exports and a low orderbook, according to a report by Fearnley Securities. The Norwegian investment bank predicts a challenging year for most shipping sectors but highlights geopolitical tensions in Russia and the Middle East as key wildcards that could significantly influence market dynamics.
Tesla’s Annual Deliveries Decline for the First Time Amid Rising Competition
Tesla reported its first-ever annual decline in vehicle deliveries, handing over 1.79 million units in 2024, a 1.1% decrease compared to the previous year and below analysts’ expectations of 1.806 million. Fourth-quarter deliveries also missed estimates, with 495,570 vehicles delivered against a forecast of 503,269. Despite incentives like zero-interest financing, demand fell for Tesla’s aging models.
Nvidia RTX 5080 Rumored to Launch January 21 Following CES Debut
Nvidia's RTX 5080 is rumored to hit shelves on January 21, following its anticipated debut at CES on January 6. According to Hong Kong media outlet HKEPC, the sales embargo for the RTX 5080 is expected to lift nearly two weeks after the announcement, a typical interval for Nvidia GPU launches. However, there’s no confirmation about the launch dates for other GPUs in the Blackwell lineup, such as the RTX 5090 and RTX 5070.
The RTX 5080 is rumored to feature Nvidia's GB203-400-A1 core with 10,752 CUDA cores and 16GB of faster GDDR7 memory, delivering a 10% CUDA core increase over the RTX 4080. Built on a custom 4NP process node from TSMC, the Blackwell architecture promises improved performance through higher density and architectural changes. With AMD not competing in the high-end GPU space this generation, the RTX 5080 may face little competition, giving Nvidia significant pricing flexibility. Further details are expected at Nvidia’s CES keynote on January 6.
Ford Recalls Nearly 300,000 Trucks Due to COVID-Era Fuel Issues
Ford is recalling approximately 300,000 Super Duty and Medium trucks equipped with 6.7-liter Power Stroke diesel engines due to high-pressure fuel pump (HPFP) failures linked to the COVID-19 pandemic. The affected vehicles, produced between 2020 and 2022, include the F250, F350, F450, F550, and F600 models.
The deposits accelerate wear on the pump’s drivetrain roller and tappet body cooling passages, leading to partial or total pump failure. Symptoms range from long cranks and reduced power to complete engine shutdown.
TSMC Advances 2nm Technology with Pilot Line and Ambitious Production Targets
TSMC is progressing rapidly in its development of 2nm (N2) technology, with a pilot production line now being established at the Hsinchu Baoshan fab (Fab 20). Initial monthly capacity is expected to reach 3,000–3,500 wafers, scaling significantly with the addition of the Kaohsiung fab (Fab 22). By the end of 2025, the combined monthly capacity for TSMC’s 2nm production is projected to exceed 50,000 wafers, increasing to 120,000–130,000 wafers per month by late 2026. This expansion reflects strong demand from major clients like Apple, MediaTek, Qualcomm, and others.
TSMC's advancements in 2nm technology promise significant performance and efficiency gains. At the IEEE International Electron Devices Meeting, the company revealed that N2 technology offers a 24–35% reduction in power consumption or a 15% performance improvement at the same voltage, with transistor density 1.15 times higher than the 3nm generation.
German Power Prices Drop Below Zero Amid Renewable Energy Surge
German power prices fell below zero on the first trading day of 2025. Intraday prices turned negative for four hours overnight as wind-energy generation surged to 40 gigawatts, Germany's highest output. In 2024, Germany experienced 468 hours of negative prices—a 60% rise from the previous year—while France and Spain also saw significant increases
German Police and Medical Experts Call for Nationwide Fireworks Ban
German police unions and medical associations have renewed calls for a nationwide ban on private fireworks, citing their reckless use during New Year’s celebrations. Despite restrictions allowing fireworks only during limited hours, reports of misuse and accidents have persisted. The GdP police union and the German Medical Association argue that the annual chaos endangers public safety and overburdens emergency services.
U.S. Steel Shares Surge on Nippon Steel White House Proposal
U.S. Steel (X) shares rose 8% to $33.40 after a Washington Post report revealed a proposal from Nippon Steel (NPSCY) to the White House. The proposal aims to secure approval for Nippon’s pending acquisition of U.S. Steel. The takeover plan has attracted significant attention, with the latest development boosting market confidence in the deal's potential progress.
Alibaba to Sell Sun Art Stake at Significant Loss to Refocus on Online Core
Alibaba Group has agreed to sell its more than 70% stake in Sun Art Retail Group Ltd. to private equity firm DCP Capital for up to HK$12.3 billion ($1.6 billion), marking a significant loss on its investment. The e-commerce giant previously paid $3.6 billion in 2020 to double its stake in Sun Art, which now has a market value of about $3 billion. Following the announcement, Sun Art shares plunged 35% in early Hong Kong trading, while Alibaba's shares dropped over 1%.
