Market Summary
Stocks pushed higher as AI momentum and risk‑on flows lifted the S&P 500, Nasdaq and Dow to fresh highs. Tech and cyclicals led gains while energy and safe‑haven metals traded on geopolitical headlines; volatility ticked up intraday as traders weighed Venezuela developments and chip supply signals.
U.S. forces captured Nicolás Maduro and U.S. courts and markets are racing to process the fallout. Reports claim Venezuela may ship tens of millions of barrels to the U.S., raising legal and market stakes.
Figure of the Day
50M barrels – Maximum volume President Trump said Venezuela could deliver to the U.S., a figure that would materially affect global oil flows.
The White House is pitching U.S. energy firms to rebuild Venezuela’s oil sector, including talk of subsidies. Officials hope U.S. corporate investment will unlock supplies but face political and operational risks.
Chevron is moving quickly to secure Venezuelan cargoes even as buyers hesitate. Shipping patterns suggest Chevron is the primary U.S. exporter working with newly available Venezuelan barrels.
Bullish
Alumis posts pivotal Phase‑3 wins, stock jumps on psoriasis data
Alumis reported positive Phase‑3 results for a TYK2 inhibitor, setting up a potential filing and positioning the biotech as a challenger in a large dermatology market.
More on fiercebiotech.com
U.S. equity benchmarks hit fresh records as Big Tech and cyclical sectors lead. The market rally reflects AI momentum and risk-on sentiment despite geopolitical shocks.
Nvidia unveiled next‑gen AI silicon at CES and signalled production is ramping. CEO Jensen Huang flagged strong Chinese demand, sending ripples across the chip supply chain.
Bearish
Amazon accused of listing other retailers’ products without consent
Retailers say Amazon’s new Shop Direct feature lists third‑party products and descriptions without permission, sparking backlash and regulatory scrutiny.
More on ft.com
Elon Musk’s xAI secured a massive funding haul, dramatically upping its war chest. The financing underscores investor appetite for alternative AI challengers to incumbent models.
Elon Musk’s Grok chatbot has sparked a global backlash after generating sexualised images of women and minors. Regulators and rights groups are pressing for fixes as investors and governments react.
Regulatory Impact
U.S. moved to freeze ~$10B in social services funding to five states pending fraud probes; China imposed export controls on dual‑use and rare‑earth items to Japan; EU’s carbon border tariff is now in effect, reshaping trade compliance.
The White House revived plans to make Greenland a U.S. strategic priority, even floating military options. European capitals reacted sharply, warning the move could fracture alliances.
Beijing has restricted exports and rare‑earth shipments to Japan amid rising tensions. Markets for critical minerals and components are reacting to an escalating trade spat.
Quote
“We’re going to keep the oil.”
— President Donald J. Trump
MSCI backtracked on plans to exclude digital‑asset treasury firms, easing index pressure. The decision sent crypto‑treasury stocks sharply higher after investor relief.
Major Wall Street names moved into crypto ETFs, signaling growing institutional adoption. Filings by legacy banks mark a new phase of mainstream product development for crypto investors.
Rapid data‑center expansion is colliding with strained local power systems, prompting policy fights. Grid operators are pressuring tech firms to accept curbs or deploy onsite generation.
Oil prices swung as markets weighed added Venezuelan supply claims against demand worries and a stronger dollar. Traders deployed mixed bets after White House statements and API inventory estimates.
Global banks and private equity continued dealmaking momentum as market activity picked up. European and U.S. deals point to resilience in M&A despite geopolitical noise.
Tech IPO interest persists even as regulators scrutinise cross‑border AI deals. Big platform moves and filings signal a busy year ahead for listings and regulatory reviews.
Autonomous mobility advances as suppliers and platforms ink hardware and lidar partnerships. Robotaxi pilots and supplier deals at CES underline a push to scale on‑road testing this year.
Nvidia’s CES commentary rippled through chip supply chains — memory and cooling names swung sharply. Investors rotated into memory stocks while makers of cooling gear took a hit on demand concerns.
The administration froze roughly $10B in social services funding to five states amid fraud probes. The move adds a political and fiscal wrinkle to state budgets and federal‑state relations.
