Good Morning!
Stock markets closed higher on Monday as investors embraced optimism about a potential "Santa Claus rally" to cap off the year. The S&P 500 gained 0.57%, the Dow Jones Industrial Average rose 0.23%, and the NASDAQ climbed 0.54%, led by rising strength in the technology sector. Trading volumes were light ahead of the holiday-shortened week.
The New York Stock Exchange will observe a shortened trading session this Christmas Eve, allowing investors and traders to wrap up their holiday strategies before the festive season. Markets will close early at 1:00 PM ET, giving participants a chance to reflect on the year’s market performance and prepare for the final trading days ahead. This lighter session often sees reduced trading volumes.
We wish you a Merry Christmas and a prosperous holiday season!
Crypto Highlights
Bitcoin’s Dip to $93K: Bitcoin experienced a 2.14% drop in the last 24 hours, trading at $93,990.75. Despite the decline, trading volumes rose by 2.99% to $54.79 billion, indicating active trading during the price correction. Bitcoin’s market cap now stands at $1.86 trillion, reflecting cautious investor sentiment.
Ethereum (ETH): Up 5% to $3,460 since yesterday afternoon, leading the altcoin rally.
Solana (SOL): Gained 5.5% in the last 24 hours reaching $195, showcasing strong momentum.
XRP: Posted a gain rise of 6.31%, trading at $2.31.
Upcoming Earnings
There are no significant earnings announcements scheduled for today.
Headlines
Trump Reportedly Calls for NATO Members to Boost Defense Spending to 5% of GDP
President-elect Donald Trump is reportedly urging NATO allies to more than double their defense spending targets, asking member nations to allocate 5% of their GDP to defense. This proposal, as reported by Financial Times and The Telegraph, significantly exceeds NATO's current target of 2% and marks an escalation from Trump’s previous call for 4% during his first term.
Trump's team has also assured European officials that the incoming administration will continue supporting Ukraine, despite concerns stemming from Trump’s campaign criticism of U.S. military aid to Kyiv.
Trump Teases US Expansion Into Panama, Greenland, and Canada
President-elect Donald Trump has hinted at ambitious territorial expansions that echo the doctrine of Manifest Destiny, proposing ideas to annex Canada, reclaim the Panama Canal, and acquire Greenland. During remarks in Arizona, Trump described Greenland as a "necessity" for national security and labeled the Panama Canal a "vital national asset," suggesting the US might retake control unless Panama reduces fees for American ships. These proposals, though controversial, align with Trump’s "America First" agenda and have sparked strong responses from foreign leaders.
Panama's President José Raúl Mulino declared the canal’s ownership “non-negotiable,” dismissing Trump’s criticism as ignorant of history, while Greenland’s Prime Minister reaffirmed the territory is “not for sale.”
Top Economist Predicts 0% Probability of US Recession in 2025, Warns of Other Risks
Torsten Sløk, chief economist at Apollo, has dismissed the likelihood of a US recession in 2025, assigning it a 0% probability. Instead, Sløk released a list of key risks for global markets, highlighting potential challenges that investors should monitor closely.
Russian Cargo Ship Sinks Off the Coast of Spain
The Russian cargo ship Ursa Major, reportedly involved in evacuating military personnel and equipment from Russian bases in Syria, sank in the Mediterranean Sea near Spain on Monday night. The Russian Foreign Ministry confirmed the incident, stating the ship sank following an explosion in the engine room.
While the ship’s captain claimed it was carrying empty containers at the time, analysts believe Ursa Major was part of a mission involving five vessels tasked with removing soldiers and materiel from Syria. Ursa Major was part of the “Syrian Express,” supplying the Russian military in Syria.
Trump Says Putin Seeks Urgent Meeting Over Ukraine War
President-elect Donald Trump announced that Russian President Vladimir Putin has expressed a strong interest in meeting to discuss the ongoing war in Ukraine. Speaking at Turning Point’s AmericaFest convention, Trump shared that Putin conveyed his desire for talks "as soon as possible" and emphasized the urgency of ending the conflict, which he described as "horrible."
Ukraine Signs Direct Contract with Rheinmetall for Artillery Ammunition
Ukraine’s Ministry of Defense has signed a direct contract with German defense manufacturer Rheinmetall for the supply of 155mm artillery shells, with deliveries set to begin in the first half of 2025. This agreement, funded by the Ukrainian state budget, marks a significant milestone in strengthening Ukraine’s defense capabilities and is the first such deal with Rheinmetall for 155mm ammunition
Israel Sells Slovakia Advanced Air Defense System in $580 Million Deal
Israel has finalized its largest defense deal with Slovakia, valued at approximately €560 million ($580 million). The agreement, announced by Israel’s Defense Ministry, includes the sale of the Barak MX Integrated Air Defense System, developed by Israel Aerospace Industries (IAI). The system is designed to counter advanced aerial threats, including ballistic missiles, and will significantly enhance Slovakia’s defense infrastructure.
Volkswagen Shares Fall as Markets Struggle to Digest Union Deal
Volkswagen shares dropped by 3% in early trading on Monday as analysts pointed to uncertainty surrounding the automaker’s recent cost-cutting deal with unions and anticipated challenges in 2025. The agreement, described by unions as a "Christmas miracle," involves plans for over 35,000 future job cuts and a 25% reduction in production without immediate plant closures or layoffs. However, analysts criticized the deal for lacking urgency and falling short of market expectations.
Trump’s 25% Tariff Proposal Threatens Canada’s Recovering Auto Industry
President-elect Donald Trump’s plan to impose a 25% tariff on Canadian imports could pose an existential threat to Canada’s recovering automotive industry, particularly in Ontario, the country’s manufacturing hub. With five automakers — including Ford, GM, Stellantis, Toyota, and Honda — producing 1.54 million vehicles in the province last year, largely for U.S. consumers, the potential tariffs have raised alarm among industry leaders and policymakers.
Ontario Premier Doug Ford warned that such tariffs would harm both Canadian and American economies, as automotive production relies on cross-border supply chains where parts and raw materials move back and forth multiple times. Analysts estimate that the proposed tariffs could add $1,750 to $10,000 to the price of vehicles assembled in Canada and Mexico, which account for 23% of U.S. auto sales. “We should be focusing on China and Mexico, not on its closest ally,” Ford said, advocating for stronger U.S.–Canada trade ties.
US Plans to Blacklist Sophgo Over TSMC Chip Found in Huawei Processor: Reports
The United States is reportedly planning to blacklist the Chinese company Sophgo for its involvement in a Taiwan Semiconductor Manufacturing Company (TSMC)-produced chip found in Huawei's Ascend 910B AI processor. This development, reported by Reuters, is part of ongoing efforts by the US to restrict companies linked to Huawei, which has been on the US Entity List since 2019.
Sophgo, associated with Bitcoin mining equipment supplier Bitmain, gained attention when a chip in Huawei's system was identified as matching one it had ordered from TSMC. Despite Sophgo's claims in October that it has no direct or indirect business ties with Huawei, the US Commerce Department is reportedly preparing to add the company to its restricted trade list, citing national security concerns.
Trump Appoints Bo Hines as Executive Director of New Crypto Council
Former college football player and Republican political candidate Bo Hines has been appointed by Donald Trump as the Executive Director of the Presidential Council of Advisers for Digital Assets. Announced on Truth Social, this move is part of Trump’s strategy to position the U.S. as a global leader in digital assets. Hines will collaborate with David Sacks, the administration’s AI and crypto czar, to foster growth and innovation in the crypto industry.
Hines, despite limited crypto experience, has been backed by pro-crypto political action committees during his campaigns. His role will focus on supporting industry leaders and shaping a regulatory environment favorable to digital assets. The appointment complements Trump’s other pro-crypto initiatives, such as appointing former SEC Commissioner Paul Atkins, a crypto supporter, to lead the SEC. Alongside Hines, Trump named Sriram Krishnan as Senior Policy Advisor for AI, highlighting his administration’s focus on technological advancement.
NVIDIA’s Blackwell Ultra “B300” AI Lineup Rumored To Launch By GTC 2025, Setting the Stage for the Next Era of AI
NVIDIA is reportedly preparing to unveil its next-generation "Blackwell Ultra" AI lineup, the B300 series, at the GTC conference in March 2025. This new architecture promises significant advancements, including up to 1.4x higher FP4 performance compared to the previous generation and an increase in memory capacity from 192 GB to 288 GB using 12-Hi stacks of HBM3E technology. The GB300 AI server is also expected to feature a massive 1400W TDP, showcasing NVIDIA's focus on maximizing computational power for AI applications.
Demand for these GPUs is already surging, with the entire Blackwell AI GPU supply reportedly sold out for the next 12 months. Key suppliers like Foxconn and Quanta are ramping up R&D efforts, with Foxconn leveraging its expertise in liquid cooling as NVIDIA transitions to this technology for its next-gen servers.
NVIDIA to Establish “Second HQ” in Taiwan, Focusing on Local Workforce
NVIDIA is reportedly planning to establish a secondary headquarters in Taiwan, underscoring the country’s importance to its operations and supply chain. The new facility reflects CEO Jensen Huang’s commitment to providing a dedicated space for local employees and recognizing Taiwan’s role in NVIDIA’s global success.
According to reports, NVIDIA is searching for up to 3 hectares of land in Taipei to build the headquarters. However, due to land availability challenges in the capital, the company may consider locations north of Taipei. In the meantime, NVIDIA has rented a 10,000-square-foot building in Taipei’s Nangang District as a temporary base for its Taiwan HQ. The proposed facility is expected to complement an R&D center announced earlier, which will employ up to 1,000 engineers.
TSMC’s Wafer Manufacturing 2.0 Reshapes Advanced Packaging Market
TSMC’s introduction of "Wafer Manufacturing 2.0" in July 2024 has transformed the advanced packaging supply chain by integrating packaging, testing, and photomask production into its operations. This shift challenges traditional OSAT dominance and establishes a new industry benchmark. Companies like Samsung and Intel are also adopting integrated packaging strategies to strengthen their foundry and IDM offerings. The market for advanced packaging, particularly 2.5D/3D technologies, is poised for rapid growth, with global penetration projected to reach 49% by the end of 2024, according to Yole Intelligence. However, China's penetration lags at 40%, highlighting the region’s effort to close the gap.
Chinese firms, including Huatian Technology and Tongfu Microelectronics, are making significant investments to advance their capabilities in 2.5D/3D packaging. Huatian’s $669 million Pangu Semiconductor project aims to begin production in 2025, while Tongfu is building a $1 billion facility for advanced packaging, targeting completion by 2029.
MicroStrategy Buys 5,262 More Bitcoin, Joins Nasdaq 100
MicroStrategy (MSTR), the software company known for its aggressive bitcoin (BTC) acquisition strategy, has added 5,262 BTC to its holdings for the seventh consecutive week. The latest purchase, totaling $561 million at an average price of $106,622 per bitcoin, brings the company’s total holdings to 444,262 BTC, valued at approximately $42.2 billion at current market prices.
This acquisition, funded through the company’s at-the-market (ATM) share sales program, raises MicroStrategy’s average cost per bitcoin to $62,257. Executive Chairman Michael Saylor teased the purchase on Sunday via X, formerly Twitter, ahead of its official announcement. The company now has $7.08 billion remaining under its ATM program for potential future investments.
TSMC Shares Reach Record High, Poised for Best Year Since 1999
Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, saw its shares touch a record high on Tuesday in Taipei, highlighting the company’s exceptional performance this year. The stock rose as much as 1.4%, briefly surpassing its previous peak on November 8, before closing flat. This comes as US chip stocks, including key customer Nvidia, rallied overnight.
TSMC shares have surged 82% in 2024, driven by strong investor enthusiasm. The company is considered a prime beneficiary of the AI boom, with market analysts like LFDE’s Net describing it as the “best way” to capitalize on the AI investment theme. This performance positions TSMC for its best annual stock gain since 1999.
Electric Aircraft Startup Lilium Ceases Operations, Lays Off 1,000 Workers
Lilium, a prominent name in the electric aircraft industry that once raised over $1 billion, has ceased operations and laid off approximately 1,000 employees. The 10-year-old company, known for developing vertical take-off and landing (VTOL) aircraft, faced insurmountable challenges in securing financing and overcoming insolvency. Lilium co-founder Patrick Nathen confirmed the closure in a heartfelt LinkedIn post, describing the end of the company’s mission as “heartbreaking.”
Elon Musk’s xAI Secures $6 Billion to Accelerate AI Expansion
Elon Musk’s artificial intelligence company, xAI, has raised $6 billion in its latest funding round, bringing its total funding to $12 billion. The round, disclosed in a filing with the U.S. Securities and Exchange Commission, included investments from notable firms such as Andreessen Horowitz, BlackRock, Fidelity, Nvidia, AMD, and Sequoia Capital. This significant infusion of cash comes as xAI targets a $50 billion valuation, double what it achieved just six months ago.
Nordstrom to Go Private in $6.25 Billion Deal with Founding Family and Mexican Retailer
Nordstrom announced on Monday that it will go private in a $6.25 billion buyout deal involving its founding family and Mexican retailer El Puerto de Liverpool. Under the agreement, Nordstrom’s founding family will hold a majority 50.1% stake, while Liverpool will own the remaining 49.9%. Common shareholders will receive $24.25 in cash per share, a premium over the $23-per-share offer the family proposed in September, which valued the company at $3.76 billion. The transaction, approved unanimously by Nordstrom's board, is expected to close in the first half of 2025.
