Investors prepare for less US rate cuts in 2025. Tesla and Marvell shares hit new record highs. Tesla still seems underestimated. Model Q could drive earnings more 25% above expectations

There’s two and a half weeks to go before year's end, so investors are repositioning their investments selectively for the year ahead. While investors see the US Federal Reserve cutting rates by 0.25% this week, they’re also bracing for less rate cuts in 2025 as the US economy is growing stronger than expected. So investors are selling bonds, which is pushing up yields to 4.4% – their highest level in a month. While traders are buying the US dollar, believing Trump’s trade policies will keep the dollar higher for longer, which took the US dollar index to a month high.

Firstly - Given the backdrop could be volatile this week with the Fed meeting, US retail sales data and Fed’s preferred inflation gauge all being released? Well  Consider Dow Jones 30 stocks such as Nvidia, Amazon and Salesforce continue to fall from their fresh highs. This has pressured the Dow Jones to fallen for seven days. Its longest pull back since 2020. The technical indicators suggest more down days are ahead before stocks can resume their long-term drive high. Secondly- Investors need to consider Wall Street is backing the Nasdaq 100 and stocks in it, that will likely do well under Trump. It’s why the pin-up tech index rose to a new record high on Friday. It’s up 30% this year.

e from Tesla’s Model 3 and Model Y, which make up 95% of Tesla’s deliveries from selling 1.7 million EVs. And now fresh analysis from Bloomberg suggest Tesla’s earnings could be 25% above Wall Street’s forecasts.

...as the AI-custom silicon chip maker proved its worth by signing a five-year cloud computing deal with Amazon’s AWS. Marvell has now won contracts with top hyper scaler companies such as Meta and Microsoft. And Marvell is touted as key next beneficiary of the next capital AI spending ahead. Micron shares another chip maker also moved higher on Friday. Keep an eye on this stock as well. It’s market share in the high bandwidth memory semiconductor market is expected to expand as chip markets like Nvidia ramp up AI-chip production. Micron last week was awarded about $6.2 billion in Federal subsides to boost American semiconductor manufacturing. Intel, TSMC were also awarded subsidies from the Chips act.

Lastly consider that if you’re investing in a commodity company, commodity metal prices are lower, with silver leading the losses, falling 1.4%, with copper, nickel, iron ore and gold all lower. Metal prices are not only being pressured by the higher US dollar but disappointing data out of China, showing banks are issuing far less loans than expected. But that narrative could change quickly if China cuts interest rates soon. It probably will too, which will delight commodity investors.