Market Summary
Markets rallied after the Fed’s 25bp cut, pushing the Dow close to record highs while the S&P 500 and Nasdaq were mixed as AI and tech stocks lagged. Volatility rose as Oracle’s weak guidance and AI capex fears weighed on tech, even as cyclical sectors and financials led gains.
Fed moves and projections reshape markets: policymakers cut rates again while signaling limited easing next year. The dot-plot split highlights internal dissent and raises questions about the path for 2026.
Figure of the Day
3.75% – Federal funds target after the Fed’s third consecutive quarter-point cut.
Oracle’s results rattled investors, reviving concerns about AI spending and corporate capex. The company’s guidance and rising data-center outlays have pushed markets to reassess AI valuations.
The U.S. seizure of a tanker off Venezuela escalates tension with Caracas and raises geopolitical risk in energy markets. Moscow and Caracas pushed back, complicating a fraught transatlantic security picture.
Bullish
Adobe tops Q4 targets — AI adoption fuels growth
Adobe beat fiscal Q4 targets and forecast continued recurring-revenue growth as customers adopt its AI-driven tools, supporting a stronger outlook for 2026.
More on investors.com
Disney is making a major strategic bet on OpenAI, deepening tech-media ties and unlocking IP for AI video. The deal signals Hollywood’s rush to monetize intellectual property for generative AI platforms.
SpaceX inches toward a blockbuster IPO that would reshape the markets for 2026. Elon Musk’s comments and company signals have reignited investor speculation about timing and valuation.
Bearish
Coupang CEO resigns after massive data breach — trust hit
A major data breach at Coupang forced executive turnover and raises long-term customer-trust and regulatory risks for the South Korean e-commerce giant.
More on techcrunch.com
TIME names the ‘Architects of AI’, spotlighting leaders shaping the sector. The recognition underscores AI’s centrality to corporate strategy and regulatory scrutiny alike.
Brussels moves to lock down Russian central assets as Europe seeks funding for Ukraine. Member states rushed to agree emergency measures, raising legal and diplomatic stakes with Hungary and Moscow.
Regulatory Impact
Fed cut policy rate to 3.75% and signaled only one cut in 2026; EU moved to immobilise Russian assets and approved €623m in chip grants; Mexico approved tariffs up to 50% on Chinese imports.
Nexo doubles down on Latin America with the acquisition of Argentina’s Buenbit, signaling a push to regulated crypto services. The deal accelerates institutional crypto expansion in the region.
Wall Street experiments with blockchain and TradFi linkages as banks pilot tokenized debt issuance and exchanges prep TradFi derivatives. These moves mark a steady institutional embrace of on-chain settlement tools.
Quote
The dot-plot dissents show the Fed is split — markets must price uncertainty, not certainties.
— Anonymous senior Fed official
Eli Lilly’s late-stage trial shows large weight loss and pain benefits, boosting its obesity franchise. The data intensifies competition in the lucrative weight-loss drug market.
Weekly jobless claims jumped, highlighting labor market volatility after the holidays. Economists warn seasonal adjustments and Fed moves will complicate near-term policy reads.
EU regulators raided Temu’s European HQ amid foreign subsidy probes, intensifying scrutiny of Chinese-backed e-commerce players. The inspections heighten regulatory risk for rapid-growth marketplaces.
The battle for Warner Bros. Discovery is accelerating as bidders weigh hostile tactics and heavy financing. Netflix and Paramount maneuvers could reshape the media landscape and debt markets.
Mexico approved large tariff hikes on Chinese and other Asian imports, intensifying trade frictions. Beijing warned the move risks harming bilateral trade and global supply chains.
Brussels greenlights large chip subsidies while European regulators seek simpler bank rules to spur growth. The moves aim to shore up competitiveness amid a global tech race.
Demand for AI chips and tracking concerns are reshaping the semiconductor trade. Asian buyers chase Nvidia H200s even as firms test tools to track GPU locations amid export worries.
Markets rallied after the Fed cut, with the Dow hitting near-record territory despite tech weakness. Investors weighed central-bank easing against renewed AI valuation concerns.
Brussels opens probes into Big Tech’s use of content for AI, raising antitrust pressure on Google and peers. Regulators are probing scraping and content use as generative AI scales.
