- Wall Street Weighs ‘Hawkish Cut’ While Tech Shines: Markets Wrap
This year’s frontrunners, big technology stocks, set a record while Treasuries sank as investors braced for a
slowdown in the pace of the Federal Reserve’s interest-rate cuts ahead of a meeting next week. The Nasdaq
100 climbed for the fourth week in a row powered by a Friday surge in Broadcom Inc. across the entire chip
technology complex. The tech-heavy gauge rose 0.8% to an all-time high for tall-time high for the second
time in three days while other major US stock indexes struggled. The S&P 500 slid 0.6% this week while the
blue-chip Dow Jones Industrial Average dropped 1.8%. Shares in Broadcom Inc. jumped 24% to a record after
predicting a boom in demand for its artificial intelligence chips and reaching a $1 trillion market value. Peers
Marvell Technology Inc., Micron Technology and Nvidia Corp. also rose. - Dow slides for a seventh straight day for longest losing streak since 2020
The Dow Jones Industrial Average fell for a seventh session on Friday, posting its longest run of losses since 2020. The blue-chip index lost 86.06 points, or 0.2%, to close at 43,828.06. The Nasdaq Composite gained
0.12% to 19,926.72. The S&P 500 ended the session little changed, closing at 6,051.09. For the week, the
Dow posted a 1.8% decline, while the S&P 500 slid about 0.6% and ended a three-week winning streak. The
Nasdaq rose 0.3% during the period. - Oil eases from highest in weeks, investors eye Fed rate cuts
Oil futures eased from their highest levels in weeks as investors awaited a meeting of the Federal
Reserve later this week for indication of further rate cuts. Falls were limited however by concerns of supply
disruptions in the event of more U.S. sanctions on major suppliers Russia and Iran. Brent crude futures fell 21
cents, or 0.3%, to $74.28 a barrel by 0110 GMT after settling at their highest level since Nov. 22 on Friday.
U.S. West Texas Intermediate crude dropped 30 cents, or 0.4%, to $70.99 a barrel after reaching its highest
settlement level since Nov. 7 in the previous session. - Gold edges higher with spotlight on Fed meeting
Gold prices inched higher on Monday as investors anticipated a potential interest rate cut by the Federal
Reserve this week, with focus on the central bank’s language on rate cuts next year. Spot gold was up 0.1% to
$2,652.07 per ounce as of 0155 GMT. Meanwhile, U.S. gold futures slipped 0.2% to $2,670.90. - Bank of Japan expected to keep rates on hold this week
A slim majority of economists, 13 out of 24, polled by CNBC expects the Bank of Japan to stand pat after its
two-day policy meeting ends on Thursday. The same majority predicts the central bank will raise rates in
January. Analysts see the yen strengthening to 147.4 against the U.S. dollar by end-2025 from around 154
currently. - China’s November retail sales miss expectations as real estate slump deepens
China’s retail sales rose by 3% in November from a year ago, according to National Bureau of Statistics data
released Monday, missing the forecast of 4.6% in a Reuters poll. The slump in real estate investment for the
January to November period deepened, shrinking by 10.4% from a year ago, following a 10.3% decline
reported in the January to October period. November industrial production rose by 5.4% from a year ago,
above the expectations of 5.3% growth among economists polled by Reuters, accelerating from a climb of
5.3% in the prior month. - South Korea markets rise early Monday after President Yoon’s impeachment
South Korean markets are on pace for a fifth straight day of gains after President Yoon Suk Yeol was
impeached on Saturday. The blue-chip Kospi rose early Monday morning, but pared gains later in the session.
The small-cap Kosdaq was 0.7% higher. - The 24 Hours of Rate Cuts That End Year of Global Central-Bank Easing
A year when inflation subsided enough for monetary policy easing to start in most advanced economies is
about to conclude with a 24-hour flurry of decisions led by the Federal Reserve. The US announcement will
take center stage on Wednesday, followed by peers in Japan, the Nordics and the UK over the following day,
amounting to half of the world’s 10 most-traded currency jurisdictions. Those events will draw most
attention among investors bracing for the last big week for monetary policy in 2024. By close of play on
Friday, at least 22 central banks accounting for two-fifths of the global economy will have set borrowing
costs. - Europe’s Rates Head Lower in Readiness for Another Trump Era
Europe’s central banks are taking a determined dovish turn to aid economies bracing for more disruption
from Donald Trump’s second stint in the White House. Decisions by policymakers in Frankfurt and Bern on
Thursday to cut interest rates left little doubt over the prospect of possible future easing to cushion the
effect of unknowns ranging from trade tensions to geopolitically stoked currency volatility. - France’s Macron names centrist Francois Bayrou as new prime minister following political turmoil
French President Emmanuel Macron on Friday named Francois Bayrou as his new prime minister, concluding
a week of political deadlock following the toppling of Michel Barnier’s government last week. Macron was
expected to announce a successor a day after Barnier’s departure but, in a sign of the country’s political
stalemate, that decision was twice delayed. The incoming prime minister will now face many of the same
pressures as his predecessor, with the left and right expected to harass the new government for their own
agendas for the 2025 budget. - Coffee prices climb to near 50-year highs, and it may take years for the rally to run out of steam
A record-breaking rally for coffee prices shows no sign of slowing down, analysts say, with some warning it
could take years for one of the world’s most traded commodities to recover.
Drought and high temperatures, alongside a global reliance on supplies from relatively few regions, are
regarded as the key drivers for the dramatic price rise. History suggests that coffee prices will only ease back
as and when supply improves and stocks are replenished, David Oxley, chief climate and commodities
economist at Capital Economics, said in a research note. - Tesla
Tesla rose 4.3% Friday after Reuters reported that President-elect Donald Trump’s team recommended
ending a rule for reporting car crashes. According to Reuters, Tesla has reported the most crashes under the
program and the requirement has been disliked by CEO Elon Musk. - Ciena, the networking equipment company, advanced 6.2% a day after posting its best performance
since August 2023
Shares closed 15% higher on Thursday after Ciena issued strong first-quarter and fiscal 2025 revenue, despite
the company falling short of Wall Street’s earnings expectations. On Friday, Bank of America upgraded the
stock to a buy from neutral on the back of stabilizing demand and accelerated cloud and AI momentum. The
upgrade comes in the wake of the company’s results, which analyst Tal Liani writes shows a better-than
expected growth trajectory. Trends are turning out better than we expected, with stabilizing demand at
North American Service Providers (SPs), and Hyperscalers’ AI bandwidth needs driving accelerated order
momentum. The company’s three-year outlook “seems brighter than we had anticipated. PT to $95 from
$70. - Bitcoin rises to new record above $106,000 as investors await this week’s Fed decision
Bitcoin rallied to a new all-time high Sunday evening as investors awaited an expected interest rate cut by the
Federal Reserve later this week. Investors are expecting the Fed to lower interest rates this week during its
two-day policy meeting, which will conclude Wednesday. Bitcoin is now up nearly 8% for the month, 50%
since the U.S. presidential election and 145% for the year. - Broadcom Surges 24%, Hits $1 Trillion Market Cap Amid AI Boom
Broadcom’s shares surged 24% after a strong earnings report, pushing its market valuation to over $1 trillion.
The company’s revenue grew 51% annually to $14.05 billion, driven by a 220% increase in AI-related
revenues. The semiconductor sector also rallied, with Marvell Technology gaining 10.8% and the
semiconductor index rising 3.2%, as investors remain optimistic about AI and tech innovation. - Marvell Technology Shares Surges 10%, Hits All-Time High of $120
Marvell Technology Group (MRVL, Financial) jumped 10% on Friday, hitting an all-time high of $120. Investors
cheer the semiconductor company’s market cap of over $101 billion as it is growing confident in its strategic
direction and its ability to ride the wave of high storage, processing and networking demand. A return to
profitability in the near term is expected, based on a consensus of 28 analysts who recently revised their
earnings expectations upward for benefits despite operating with a moderately levered balance sheet.
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