Market Summary
Markets are jittery after mixed economic data and big policy moves. The S&P 500 and Nasdaq traded with rotation out of high‑multiple tech while the Dow lagged amid industrial and energy weakness. Volatility rose as jobs data cooled, oil slid to multiyear lows and banks reallocated cash into Treasuries, leaving markets cautious ahead of central‑bank signals.
President Trump ordered a blockade of sanctioned oil tankers bound for Venezuela, escalating U.S. pressure on Maduro. Related reports show U.S. seizures and disruptions have already paralysed Venezuela’s oil exports, with a few firms continuing to operate.
Figure of the Day
$350bn – Amount JPMorgan pulled from the Federal Reserve to buy Treasuries and lock in yields.
OpenAI is in high-level talks with Amazon over a multibillion-dollar investment and use of AWS chips. Multiple reports confirm negotiations could reshape cloud-AI partnerships and valuations in the sector.
Databricks has raised fresh capital as demand for AI infrastructure stays hot, pushing private valuations higher. The funding round underscores investor appetite for AI-first enterprise software ahead of IPO talk.
Bullish
SBI Shinsei Bank Jumps 16% in Tokyo Debut
SBI Shinsei Bank surged in its trading debut after a successful ¥322bn IPO, signaling strong investor appetite for Japan fintech listings.
More on japantimes.co.jp
Ford is writing down billions and retreating from flagship EV projects amid weak demand and political headwinds. The automaker’s strategic pivot signals a broader industry reassessment of EV bets.
The delayed U.S. jobs reports show a cooling labour market with mixed payroll gains. Rising unemployment and softer hiring are reshaping expectations for growth and Fed monetary policy.
Bearish
CoreWeave Slides Amid AI Infrastructure Fears
CoreWeave shares plunged as investors reassess AI-infrastructure profitability, stoking wider concerns about overbuilt capacity and financing risks in the sector.
More on investors.com
Atlanta Fed officials warn that moving too quickly on rate cuts could imperil central bank credibility. Fed commentary is sharpening market debate over the timing and scale of near-term easing.
JPMorgan shifted hundreds of billions out of Reserve deposits to lock in higher Treasury yields, driving a large reallocation in bank balance sheets. Markets and policymakers are watching the implications for liquidity.
Regulatory Impact
Regulators moved fast: FDIC outlines GENIUS Act application procedures and proposed the first stablecoin rule; UK to review EV sales targets; EU softens the 2035 combustion-engine ban. Trade and tech penalties loom in US‑EU rows.
Oil plunged as supply expectations and progress on peace talks pressured prices, taking crude to multi-year lows. The energy rout is weighing on related commodity-linked sectors and producers.
Regulatory rulings and enforcement actions hit Tesla over Autopilot marketing, forcing urgent changes to advertising and sales in California. The decisions raise risks for EV growth and Tesla’s brand.
Quote
Some AI startups are wildly overpriced — a correction is coming.
— Demis Hassabis, Google DeepMind CEO
OpenAI is bulk-hiring senior government-facing talent to expand global partnerships and country-level AI initiatives. The move signals a push to cement ties with policymakers and governments.
Chinese AI chip makers are drawing frenzied demand as GPU supply tightens and investors pile into new listings. MetaX’s blockbuster debut exemplifies investor appetite for domestic AI hardware plays.
Beijing adjusts trade protections and heavy industry output faces pressure as demand softens. Policy moves on tariffs and steel signal sector stress and broader trade tensions with the EU.
Europe created a Hague-based commission to adjudicate Ukraine reparations while Kyiv continues to stretch its military capabilities. Together these items mark sustained European focus on legal and battlefield fronts.
UK inflation cooled sharply in November, increasing the odds of a Bank of England rate cut. The data shifts market expectations and intensifies political debate over the economy.
U.S. regulators are moving to define how banks can issue payment stablecoins under the GENIUS Act, proposing formal application procedures. The FDIC’s parallel rulemaking shows regulators are building a framework for tokenized payments.
Cryptocurrency markets are testing technical supports even as institutional demand for XRP ETFs grows. Bitcoin faces downside pressure while exchange-traded products attract fresh capital.
Warner Bros’ board is preparing to rebuff Paramount’s $108bn hostile bid, while financing frictions surfaced as key backers withdrew. The takeover battle is roiling media M&A and strategic options for studios.
Lawmakers and utilities are probing the power burden from rapid AI data centre builds as local grids strain. State-level outages and capacity issues underscore the infrastructure cost of the AI boom.
