At the close, the Dow Jones dropped by 418.48 points, a decrease of 0.97%, closing at 42,573.73 points; the Nasdaq fell by 235.25 points, a decline of 1.19%, closing at 19,486.78 points; the S&P 500 Index decreased by 63.90 points, down by 1.07%, closing at 5,906.94 points.
According to Zhito Finance, on Monday, the three major indices closed lower, with the Dow dropping over 400 points, and the 10-year US Treasury yield falling from its highest level since May. The price of Henry Hub Natural Gas futures surged over 16%, with February natural gas futures up 16.34%, closing at 3.9360 USD per million British thermal units.
As of the market close, the Dow dropped 418.48 points, a decline of 0.97%, closing at 42573.73 points; the Nasdaq fell 235.25 points, down 1.19%, closing at 19486.78 points; the S&P 500 Index declined 63.90 points, a decrease of 1.07%, closing at 5906.94 points. NVIDIA (NVDA.US) rose 0.3% against the trend, while Tesla (TSLA.US) fell 3.3% and Apple (AAPL.US) decreased by 1.3%. Faraday Future (FFIE.US) jumped 78%. The Nasdaq Golden Dragon China Index declined by 1.9%, Alibaba (BABA.US) went down 1%, and Xpeng Motors (XPEV.US) fell 6%.
European stocks saw the German DAX30 Index decline by 117.78 points, down 0.59%, closing at 19840.85 points; the UK FTSE100 Index fell by 28.53 points, a decrease of 0.35%, closing at 8121.25 points; the France CAC40 Index dropped 41.81 points, down 0.57%, closing at 7313.56 points; the Europe Stoxx 50 Index decreased by 29.43 points, a decline of 0.60%, closing at 4869.45 points; the Spain IBEX35 Index rose by 9.33 points, up 0.08%, closing at 11534.63 points; the Italy FTSE MIB Index gained 12.03 points, up 0.04%, closing at 34173.00 points.
In the Asia-Pacific stock market, the Nikkei 225 Index fell 0.96%, the Indonesia Jakarta Composite Index rose 0.62%, and the South Korea KOSPI Index decreased by 0.22%.
In the crypto market, Bitcoin dropped over 1.6%, closing at 92128.52 USD; Ethereum fell by 0.77%, closing at 3327.32 USD.
In the gold market, spot gold decreased by 0.51%, closing at 2607.92 USD per ounce, with an intraday trading range of 2628.14-2596.19 USD; COMEX gold futures fell 0.40%, closing at 2621.50 USD per ounce, with an intraday trading range of 2640.70-2608.40 USD.
[Crude Oil] The February futures price for West Texas Intermediate (WTI) crude oil on the New York Mercantile Exchange rose by $0.39, an increase of 0.55%, closing at $70.99 per barrel; the February futures for Brent crude oil on the European Intercontinental Exchange rose by $0.22, an increase of 0.3%, closing at $74.39 per barrel.
[Forex] The USD Index, which measures the dollar against six major currencies, rose by 0.13% on the day, closing at 108.132 in the foreign exchange market. As of the New York foreign exchange market close, 1 euro exchanged for 1.0397 dollars, down from 1.0428 dollars the previous trading day; 1 British Pound exchanged for 1.2544 dollars, down from 1.2582 dollars the previous trading day. 1 dollar exchanged for 157.09 Japanese Yen, down from 157.94 Yen the previous trading day; 1 dollar exchanged for 0.9040 Swiss Franc, up from 0.9018 Swiss Franc the previous trading day; 1 dollar exchanged for 1.4359 Canadian Dollar, down from 1.4411 Canadian Dollar the previous trading day; 1 dollar exchanged for 11.0249 Swedish Krona, up from 11.0011 Swedish Krona the previous trading day.
[Metal] LME copper futures fell by $72, closing at $8910 per ton. LME aluminum futures fell by $7, closing at $2551 per ton. LME zinc futures fell by $12, closing at $3019 per ton. LME lead futures fell by $22, closing at $1948 per ton. LME nickel futures rose by $104, closing at $15415 per ton. LME tin futures rose by $485, closing at $29295 per ton. LME cobalt futures remained unchanged, closing at $24300 per ton.
[Macroeconomic News]
Redfin: The number of homes for sale in the USA reached a four-year high in November. According to data from the real estate company Redfin, the number of homes for sale in November set a new record since 2020, increasing by 0.5% compared to October and 12.1% compared to the same period last year. Redfin stated that one major reason for the sharp increase in supply is the backlog of unsold homes, many of which are unpopular with buyers due to high prices or being uninhabitable. In November, over half (54.5%) of the listed homes had been on the market for at least 60 days without a contract. Homes priced at $0.65 million or below are typically in high demand, but now often face stagnant sales due to sellers likely pricing them too high.
Institutions: The Chicago PMI in the USA has weakened for three consecutive months. Analysis institutions reported that the December Chicago PMI has weakened for the third consecutive month, dropping from 40.2 in November to 36.9. This month’s recorded figure is the second lowest since the pandemic began, only higher than the 35.4 in May of this year, down nearly 10 points from 46.6 in September, indicating a significant weakening of the economy. This contrasts with some survey results seen since the election, where many businesses anticipated protectionist policies. However, it is consistent with other data, including the preliminary S&P Global Manufacturing PMI (falling from 49.7 to 48.3) and the Philadelphia Fed Manufacturing Survey Index (falling from -5.5 to -16.4).
[Individual Stock News]
Fannie Mae (FNMA.US) and Freddie Mac (FMCC.US) surged by 40%. The tycoon claims the two houses are likely to be released from conservatorship. The oldest controversy on Wall Street has once again come to the forefront. The stock prices of the American mortgage giants Fannie Mae and Freddie Mac surged on the US OTC market, following billionaire Bill Ackman's post that sparked optimism about the possibility of these two companies being freed from federal conservatorship under Trump 2.0. The prices of the two companies’ stocks rose by as much as 40%, marking a new high since November. Ackman, who holds stocks in the two companies, wrote, 'What is particularly noteworthy about these two companies today is that there are reliable paths to get them out of conservatorship in a relatively short period, specifically within the next two years.' Trump made several attempts to privatize the two companies during his first term. Within a month after Trump's potential victory in 2024, the stock prices of Freddie Mac and Fannie Mae rose by 116% and 143%, respectively. During the end of 2007 to 2008, the two companies were severely impacted by the US subprime mortgage crisis and were on the brink of bankruptcy, as they had or guaranteed half of the $12 trillion total value of the US mortgage market and were too big to fail. Thus, on September 6, 2008, the US government decided to take control of the two companies.
Antitrust investigation approved. NVIDIA (NVDA.US) has officially completed its acquisition of the AI startup Run:ai. The two companies confirmed on December 30 that NVIDIA has completed the acquisition of the Israeli AI startup Run:ai. The founder of Run:ai stated in a blog post that the company plans to open-source its software. "Although Run:ai currently only supports NVIDIA's GPUs, open-sourcing the software will enable it to expand to the entire AI ecosystem." NVIDIA and Run:ai announced the deal at the end of April this year, but did not disclose the transaction price. The European Commission announced on the 20th of this month that it unconditionally approved the acquisition proposal, believing that the transaction would not raise competition concerns in the European Economic Area. Previously, media reports indicated that the U.S. Department of Justice had also conducted an antitrust investigation into the transaction.
Boeing (BA.US) shares slightly recovered as South Korea ordered an investigation following a Boeing plane crash. Boeing's stock closed down 2.31%, having previously dropped over 5%. A Boeing 737-800 jet of South Korea's Jeju Air crashed upon landing at Muan International Airport on Sunday, resulting in 179 casualties. South Korean officials stated that investigators are examining factors that may have led to the crash, including bird strikes, potential failures in the aircraft's control systems, and the pilot's eagerness to attempt landing shortly after declaring an emergency. Hargreaves Lansdown stock analyst Aarin Chiekrie stated: While the cause of the crash is still under investigation, it has brought greater reputational damage to Boeing this year.
