Market Summary
Equities tread cautiously ahead of the Fed as S&P 500 and Nasdaq rally on hopes for rate cuts while the Dow lags. Volatility remains elevated after geopolitical shocks and megadeals — streaming M&A and energy flows spur sector rotations; financials and commodities are outperforming, tech reacts to AI leadership and regulatory headlines.
Netflix stunned Hollywood with a blockbuster bid for Warner Bros., reshaping studio ownership and streaming economics. The deal includes massive breakup protections, underscoring the transaction’s scale and regulatory risks.
Figure of the Day
653 — Number of drones Russia reportedly used in the overnight attack on Ukraine.
Russia launched a sweeping overnight offensive of drones and missiles, marking one of the largest concentrated strikes since the war began. The attacks intensified pressure on Ukraine even as diplomatic talks continued.
SpaceX is lining up an insider secondary that would value the company near $800 billion, a potential milestone for private markets. Elon Musk has publicly disputed valuation reports, creating market noise around the financing move.
Bullish
Tesla posts record quarterly EV deliveries, stock edges higher
Tesla delivered a company‑record number of EVs this quarter, beating estimates and lifting investor confidence as margins improved on higher software and services revenue.
The EU fined X over breaches of digital rules, a major enforcement action against a major social platform. Elon Musk responded angrily, promising a response and escalating a high-profile clash with European regulators.
Apple is experiencing a rare executive exodus, with its chip chief reportedly weighing departure and other senior managers leaving. The shake-up raises questions about leadership continuity as Apple retools around AI and services.
Bearish
Major retail chain files for bankruptcy after holiday sales collapse
A national retailer filed for Chapter 11 after missing holiday sales targets and facing heavy debt, signaling broader stress in consumer discretionary spending.
Fed policy remains in focus as Jerome Powell is positioned to push through another rate cut despite dissent. Markets are parsing the Fed’s balance between supporting growth and reining in inflation ahead of a key meeting.
The Zaporizhzhia nuclear plant temporarily lost power overnight, prompting international concern and IAEA involvement. The incident adds urgency to calls for safeguards amid continued shelling in the region.
Regulatory Impact
White House orders food‑supply task forces and price‑fixing probes; CDC advisory panel ends routine newborn hepatitis B recommendation; administration reviews national vaccine schedules.
Putin used his India visit to lock in energy ties and expand trade ambitions with New Delhi. Moscow pledged uninterrupted oil flows as both sides set a $100 billion trade target, deepening Russia-India economic ties.
Jamie Dimon warned that Europe’s stasis poses a real economic risk, underscoring investor worries about the continent’s growth outlook. ECB officials meanwhile flagged downside inflation risks, keeping policymakers on alert.
Quote
‘In China they can build a hospital in a weekend’ — a stark note on infrastructure speed and competitive edge.
— Jensen Huang, Nvidia CEO
Markets are positioning for index rebalances and an IPO thaw heading into 2026, with the NYSE predicting a surge of deals. A large-cap car retailer is set to join the S&P 500, signaling notable index flows ahead of the quarterly reshuffle.
Copper’s rally split the banks as investors weigh demand from energy transition projects against supply risks. Glencore’s bullish pitch underscores miner-led M&A and asset plays in a tight market.
A magnitude 7 quake struck Alaska’s Yakutat region, part of a cluster of strong temblors in a 24-hour period. Greece also recorded a significant tremor, highlighting renewed seismic activity across distant regions.
Trans-Atlantic relations are frayed as senior US diplomats criticized EU policy directions. The public spat highlights rising diplomatic tensions over regulations and strategic priorities.
Boeing pushed back against an equity plan aimed at defense firms, saying it wouldn’t apply to major contractors. The Pentagon emphasized that allies must shoulder collective defense costs, keeping pressure on NATO partners.
Crypto markets show tentative signs of stabilization as liquidity improves and Fed cut odds rise, according to Coinbase. Regulatory friction continues in Europe after Poland stood apart on MiCA, underscoring uneven crypto adoption.
A human error caused a CME data-center outage, spotlighting fragility in market infrastructure. Meanwhile, CoreWeave’s profitability contrasts with peers burning cash to build data centers, highlighting divergent cloud-scale strategies.
Scientific and legal fallout from glyphosate litigation continues as a major journal retracts a study defending Roundup. Bayer is pursuing insurers to cover mounting legal costs tied to Roundup and other liability claims.
The White House ordered probes and task forces targeting food supply competition amid rising consumer price concerns. The moves form part of a broader domestic agenda addressing affordability ahead of elections.
