As markets brace for the Federal Reserve's final policy meeting of the year, scheduled at 2:00 p.m. Wednesday, Goldman Sachs highlighted 20 exchange-traded funds (ETFs) that have historically shown outsized <a href="https://www.benzinga.com/topic/federal-reserve">moves around Fed decision days</a>.



While a 25-basis-point rate cut to a target range of 4.25%-4.50% is widely anticipated, the market's focus is on the Fed's forward guidance, particularly the Summary of Economic Projections (SEP) and the updated &#8220;dot plot.&#8221;



Following December's expected cut, Goldman Sachs projects a more measured pace of easing next year, forecasting rate cuts in March, June, and September, with the terminal rate seen at 3.50%-3.75%.



Read Also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42554114/all-eyes-on-december-fed-meeting-as-traders-await-interest-rate-projections">All Eyes On December Fed Meeting As Traders Await Interest Rate Projections</a>



<h3 class="wp-block-heading">Market Dynamics Around Fed Days</h3>



U.S. equity markets have displayed strong short-term gains during Fed meeting weeks in 2024. 



Investors employing a simple strategy of buying the S&amp;P 500 index at market close before a Federal Open Market Committee (FOMC) announcement and selling at close the following day have captured median returns of 1.1% across the past seven meetings.



Yet those extending the trade horizon to 15 sessions post-Fed meeting have enjoyed significantly larger average gains of 3.29%, more than double the short-term returns. Notably, every Fed meeting this year has resulted in positive 15-day returns.



"We observe that U.S. banking ETFs, such as SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>) and SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>), have seen unusually large moves on FOMC days since 2022" Goldman analysts wrote in a recent note.



For bond-focused investors, the report highlights consistent post-meeting gains in high-yield and investment-grade ETFs like iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HYG#NYSE">HYG</a>) and iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LQD#NYSE">LQD</a>).



Meanwhile, energy-focused ETFs, such as the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), have seen negative reactions. 



<h3 class="wp-block-heading">ETFs Showing Heightened Fed-Day Moves</h3>



Here's Goldman Sachs' list of 20 ETFs with the largest absolute moves – which include both positive and negative swing – on FOMC days:



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>ETF Name</th><th>Focus</th><th>Average Absolute Move on FOMC since 2022</th><th>Average Absolute Move (Last 3 FOMC events)</th></tr></thead><tbody><tr><td>SPDR S&amp;P Regional Banking ETF </td><td>Regional Banking</td><td>2.5%</td><td>1.5%</td></tr><tr><td>VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>)</td><td>Semiconductor</td><td>2.4%</td><td>3.7%</td></tr><tr><td>iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>)</td><td>Semiconductor</td><td>2.4%</td><td>3.3%</td></tr><tr><td>SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>)</td><td>US Large Banks</td><td>2.2%</td><td>1.3%</td></tr><tr><td>SPDR S&amp;P Biotech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XBI#NYSE">XBI</a>)</td><td>Biotech</td><td>2.0%</td><td>0.3%</td></tr><tr><td>United States Oil Fund </td><td>Oil</td><td>1.9%</td><td>2.0%</td></tr><tr><td>Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td><td>Technology</td><td>1.9%</td><td>2.3%</td></tr><tr><td>iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>)</td><td>Silver</td><td>1.7%</td><td>2.4%</td></tr><tr><td>Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)</td><td>Nasdaq 100</td><td>1.7%</td><td>1.7%</td></tr><tr><td>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td><td>Discretionary</td><td>1.6%</td><td>1.0%</td></tr><tr><td>iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>)</td><td>Russell 2000</td><td>1.5%</td><td>0.3%</td></tr><tr><td>SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)</td><td>S&amp;P 500</td><td>1.2%</td><td>0.9%</td></tr><tr><td>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</td><td>S&amp;P 500</td><td>1.2%</td><td>0.9%</td></tr><tr><td>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td><td>Financial</td><td>1.1%</td><td>0.7%</td></tr><tr><td>SPDR Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>)</td><td>Gold</td><td>0.9%</td><td>1.4%</td></tr><tr><td>iShares J.P. Morgan USD Emerging Markets Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EMB#NASDAQ">EMB</a>)</td><td>EM Bond</td><td>0.8%</td><td>0.6%</td></tr><tr><td>iShares iBoxx $ High Yield Corporate Bond ETF </td><td>HY Corp Bond</td><td>0.6%</td><td>0.3%</td></tr><tr><td>iShares iBoxx $ Investment Grade Corporate Bond ETF </td><td>IG Corp Bond</td><td>0.6%</td><td>0.7%</td></tr><tr><td>iShares 7-10 Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IEF#NASDAQ">IEF</a>)</td><td>7-10 Year Treasury</td><td>0.6%</td><td>0.7%</td></tr><tr><td>iShares TIPS Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TIP#NYSE">TIP</a>)</td><td>TIPS Bond</td><td>0.5%</td><td>0.4%</td></tr><tr><td>Average</td><td></td><td>1.5%</td><td>1.3%</td></tr></tbody></table></figure>



Check Out: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42539116/fed-meetings-made-stock-traders-richer-in-2024-could-wednesday-bring-last-big-rally">Fed Meetings Made Stock Traders Richer In 2024: Could Wednesday Bring Last Big Rally?</a></li>
</ul>



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20 ETFs Primed For Unusually Big Swings On Fed Meeting Days

The Federal Reserve is set to wrap up 2024 with its last Federal Open Market Committee (FOMC) meeting on Wednesday, delivering what's expected to be its third <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42514008/fed-poised-to-cut-interest-rates-by-0-25-this-week-heres-why-your-focus-should-shift-to-other-signals">consecutive interest rate cut. </a>



Policymakers are expected to lower the federal funds rate by 0.25%, bringing it to a target range of 4.25%-4.50%.



While the move has been widely anticipated, traders are less concerned about the cut itself and more focused on the Fed's forward-looking guidance — particularly the updated Summary of Economic Projections (SEP) and the closely watched "dot plot."



Here&#8217;s what you need to know. 



<h3 class="wp-block-heading">December&#8217;s Dot Plot, Inflation Forecasts Likely To Show Hawkish Revisions</h3>



In September, the Fed's dot plot – a chart that shows where each policymaker thinks interest rates should be in the future –&nbsp;projected the federal funds rate would finish 2024 at a median level of 4.4%. 



The expected 0.25% cut at this meeting aligns with that projection, leaving little surprise on the surface. 



Yet, the December SEP will offer a glimpse into the Fed's plans for 2025 and beyond, potentially reshaping market expectations.



Back in September, the Fed forecasted 100 basis points of rate cuts in 2025, signaling four 0.25% reductions over the year. But with recent data showing hotter-than-expected inflation and stronger economic growth, policymakers are expected to scale back these projections. 



Analysts are split on a downward revision of 25 to 50 basis points, implying only two or three rate cuts in 2025. This adjustment would reflects a more cautious approach by the Fed. 



Fed futures – which reflects market-based interest rate expectations – currently assign a 74% chance on two rate cuts by December 2025, and 26% odds indicating three or more cuts, as per CME FedWatch.



<h4 class="wp-block-heading">Fed&#8217;s Summary of Economic Projections – September 2024</h4>



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Variable</th><th>2024</th><th>2025</th><th>2026</th><th>2027</th><th>Longer Run</th></tr></thead><tbody><tr><td>Change in real GDP</td><td>2.0</td><td>2.0</td><td>2.0</td><td>2.0</td><td>1.8</td></tr><tr><td>Unemployment rate</td><td>4.4</td><td>4.4</td><td>4.3</td><td>4.2</td><td></td></tr><tr><td>PCE inflation</td><td>2.3</td><td>2.1</td><td>2.0</td><td>2.0</td><td>2.0</td></tr><tr><td>Core PCE inflation</td><td>2.6</td><td>2.1</td><td>2.0</td><td>2.0</td><td></td></tr><tr><td>Federal funds rate</td><td>4.4</td><td>3.4</td><td>2.9</td><td>2.9</td><td>2.9</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">Inflation Forecasts: The Fed's Roadmap To 2% At Stake</h3>



Inflation remains the Fed's top concern. 



In September, the Fed projected that the PCE price index would decline from 2.3% in 2024 to 2.1% in 2025, eventually hitting the 2% target in 2026. Core PCE inflation — its preferred inflation gauge — was expected to fall from 2.6% in 2024 to 2.1% in 2025.



If the updated projections indicate a slower return to the 2% target, it could signal a prolonged pause in rate cuts, underscoring the Fed's struggle to balance its inflation mandate with economic growth. 



Markets will be on high alert for any language from Fed Chair Jerome Powell that hints at inflation's persistence.



<h3 class="wp-block-heading">Market Dynamics And Powell's Tightrope</h3>



Fed meetings this year have delivered positive reactions by stocks. 



Buying the S&amp;P 500 index – as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – at market close the day before a Fed meeting and selling the day after has yielded a median gain of 1.1% over the last seven meetings. Extending the holding period to 15 days boosts the average profit to 3.29%, more than double the one-day return.



Read also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42539116/fed-meetings-made-stock-traders-richer-in-2024-could-wednesday-bring-last-big-rally">Fed Meetings Made Stock Traders Richer In 2024: Could Wednesday Bring Last Big Rally?</a>



Yet, Powell has a delicate task ahead. 



At his last public appearance on Dec. 4, Powell acknowledged the Fed's improved growth outlook but cautioned that inflation has proven more persistent than expected. 



"We can afford to be a little more cautious as we try to find neutral," he said, striking a tone that hints at flexibility but leaves markets guessing.



The press conference following the December meeting will be pivotal. Powell must thread the needle between reassuring investors about disinflation progress and addressing inflation's recent uptick. 



A hawkish tone — emphasizing inflation risks — could jolt markets with renewed volatility, while a dovish stance might fuel optimism and risk-taking.



Bottom line, the last Fed meeting of the year isn't just about the interest rate cut, as the real action lies in the updated Summary of Economic Projections and Powell's remarks.



Investors will be dissecting every word for clues about the Fed's strategy heading into 2025. 



If Powell strikes the right balance, markets could rally into the new year. If not, expect a rollercoaster ride as traders recalibrate their expectations for the Fed's next moves.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42489039/feds-december-meeting-could-crush-rate-cut-optimism-for-2025">Fed&#8217;s December Meeting Could Crush Rate Cut Optimism For 2025</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

All Eyes On December Fed Meeting As Traders Await Interest Rate Projections

Micron Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) will release earnings for its first quarter, after the <a href="https://www.benzinga.com/quote/MU/earnings">closing bell on Wednesday, Dec. 18.</a>



Analysts expect the Boise, Idaho-based company to report quarterly earnings at $1.77 per share, versus a year-ago loss of 95 cents per share. Micron projects to report quarterly revenue of $8.71 billion, compared to $4.73 billion a year earlier, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.



The company has beaten analyst revenue estimates in six straight quarters and seven of the last 10 quarters overall.



With the recent buzz around Micron, some investors may be eyeing potential gains from the company's dividends too. As of now, Micron offers an annual dividend yield of 0.42%. That&#8217;s a quarterly dividend amount of 11.5 cents per share (46 cents a year).



So, how can investors exploit its dividend yield to pocket a regular $500 monthly?



To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $1,551,460 or around 14,286 shares. For a more modest $100 per month or $1,200 per year, you would need $310,270 or around 2,857 shares.



To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.42 in this case). So, $6,000 / $0.42 = 14,286 ($500 per month), and $1,200 / $0.42 = 2,857 shares ($100 per month).



Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.



How that works: The dividend yield is computed by dividing the annual dividend payment by the stock&#8217;s current price.



For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).



Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.



MU Price Action: Shares of Micron gained 0.3% to close at $108.60 on Tuesday.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="How to Find Dividend Stocks: Scan, Analyze, and Capture with Benzinga Pro" width="500" height="281" src="https://www.youtube.com/embed/pVF0O2lsEH4?start=1&#038;feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
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Read More: 



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<li><a href="https://www.benzinga.com/24/12/42531171/top-2-utilities-stocks-that-could-sink-your-portfolio-this-quarter">Top 2 Utilities Stocks That Could Sink Your Portfolio This Quarter</a></li>
</ul>



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Long Ideas

News

Trading Ideas

How To Earn $500 A Month From Micron Stock Ahead Of Q1 Earnings

Former BitMEX CEO Arthur Hayes on Wednesday issued a stark warning about a potential "harrowing dump" in cryptocurrency markets around Donald Trump's <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/42232116/dogecoin-to-hit-69-cents-by-inauguration-day-polymarket-traders-are-not-convinced">inauguration on Jan. 20, 2025.</a>



What Happened: Hayes argues that overly optimistic investor expectations for Trump's economic policies will clash with the slow pace of real-world change, leading to a sharp sell-off.



In his latest blog post <a href="https://cryptohayes.substack.com/p/trump-truth?utm_campaign=post&amp;utm_medium=web&amp;triedRedirect=true">titled</a> &#8220;Trump Truth&#8221;, Hayes outlines his outlook for the crypto market as Trump prepares to assume office for his second term.



Hayes believes that while Trump's policies are likely to favor asset price inflation and a weaker U.S. dollar in the long term, immediate results are unlikely. 



"The market believes that Trump and his people can immediately achieve economic and political miracles," Hayes wrote. He warns that the crypto market will face a reality check, saying, "I believe the crypto markets will experience a harrowing dump around Trump's January 20th 2025 inauguration day."



Hayes explains that Trump has only one year to implement any significant policy changes before mid-term campaigning begins in late 2025, which will limit his administration's ability to enact meaningful reforms. 



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42537836/litecoin-hbar-etfs-could-come-before-xrp-solana-heres-why">Litecoin, HBAR ETFs Could Come Before XRP, Solana: Here&#8217;s Why</a>



He added that <a href="https://www.benzinga.com/news/24/12/42257531/heres-how-ray-dalio-thinks-trumps-second-term-could-reshape-the-us-and-the-world">structural economic issues</a> cannot be solved within such a short timeframe, setting up investors for disappointment.



Despite predicting short-term volatility, Hayes remains confident in the broader bull market for cryptocurrencies, particularly Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>). 



He believes Trump's policy goals—including weakening the U.S. dollar to reindustrialize America—will ultimately increase the global supply of fiat currency and drive demand for hard assets like Bitcoin. 



"Trump Truth shows me the structural deficiencies of the global order… The best way to maximize returns is to own Bitcoin and crypto," he emphasized.



While Hayes acknowledges the risks of timing the market, he outlined his firm Maelstrom's strategy of reducing exposure ahead of the inauguration, with plans to buy back positions during the anticipated sell-off. 



"Maelstrom will be lightening up on certain positions in advance, hoping to rebuy some core positions at lower prices sometime in 1H25," he wrote.



What&#8217;s Next: Hayes concluded by cautioning traders against underestimating the challenges Trump will face and stressed that, while a near-term correction is likely, he remains committed to long-term crypto investments.



"We are committed to admitting defeat if the bull market steamrolls through January 20th, licking our wounds, and getting back on the bull."



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42526592/bitcoin-ethereum-etfs-see-688m-net-inflows-analysts-target-124000">Bitcoin, Ethereum ETFs See $688M Net Inflows, Analysts Target $124,000</a></li>
</ul>



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Cryptocurrency

$BTC

Trump Inauguration Could Coincide With A 'Harrowing Dump' For Crypto, Arthur Hayes Warns

The global fund managers increased their allocation to <a href="https://www.benzinga.com/24/12/42527883/top-3-financial-stocks-which-could-rescue-your-portfolio-for-december">financial stocks</a>, which include both banks and insurance companies, to an all-time high in December.



What Happened: According to the Bank of America&#8217;s Global Fund Manager Survey, as reported <a href="https://finance.yahoo.com/news/investors-allocation-to-us-stocks-hits-record-high-amid-super-bullish-sentiment-bofa-survey-164349535.html">by</a> Yahoo Finance, investors&#8217; allocation to banks increased by 23% points in December compared to the previous month. This resulted in global fund managers being 41% overweight on banking stocks in December, which is the highest since January 2022.



Similarly, the allocation to insurance companies surged by 15% points month-on-month. This represented an overweight position of 20% within the sectors by the global fund managers. It is the highest since February 2014.



Furthermore, the investor positioning relative to their historical long-term positions increased within the financial universe, followed by the U.S. stocks and utilities, according to the BofA survey.



The investors were underweight with respect to their exposure to cash, Eurozone stocks, staples, and bonds.



See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42531373/financial-stocks-near-record-year-could-trump-deregulation-fuel-bigger-gains-in-2025">Financial Stocks Near Record Year: Could Trump Deregulation Fuel Bigger Gains In 2025?</a>



What Are The Analysts Saying



Mario Georgiou, executive director, head of investments at InCred Global Wealth U.K., in an <a href="https://www.benzinga.com/24/11/42158682/donald-trumps-win-positive-for-financials-energy-sector-as-pro-growth-effects-will-outweigh-inflationary-pressures-says-analyst">exclusive conversation with Benzinga</a>, described tax cuts and deregulation as tailwinds to the markets. He considers inflationary policies such as tariffs and immigration impacts as headwinds, leading to a steepening yield curve, and higher term premiums.



"Financials offer an attractive risk-reward and that this recent post-election rally has room to run," added Georgiou. According to him "Financials are not only well positioned to capture the benefits of the above-mentioned Trump tailwinds, but are also less impacted / would even benefit from the Trump headwinds."



Bank of America's global economics team recently summarized the sentiment, stating, "Pro-growth policies like deregulation of financial services and energy, as well as lower taxes, are boosting market sentiment and asset prices."



According to Goldman Sachs analyst Richard Ramsden, large-cap banks remain optimistic about the economy. &#8220;Healthy consumer spending trends and strong corporate balance sheets have supported a constructive outlook,&#8221; Ramsden said in a recent note.



The top-performing financial stocks of 2024 include Robinhood Markets, Interactive Brokers Group, Coinbase Global, KKR &amp; Co, and Wells Fargo.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Company</td><td>YTD Performance</td></tr><tr><td>Robinhood Markets Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>)</td><td>236.54%</td></tr><tr><td>Interactive Brokers Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBKR#NASDAQ">IBKR</a>)</td><td>111.59%</td></tr><tr><td>Coinbase Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>)</td><td>98.65%</td></tr><tr><td>KKR &amp; Co Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KKR#NYSE">KKR</a>)</td><td>85.99%</td></tr><tr><td>Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>)</td><td>43.54%</td></tr><tr><td>Blackstone Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BX#NYSE">BX</a>)</td><td>42.75%</td></tr><tr><td>M&amp;T Bank Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTB#NYSE">MTB</a>)</td><td>41.08%</td></tr><tr><td>JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>)</td><td>38.52%</td></tr><tr><td>Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>)</td><td>36.04%</td></tr><tr><td>Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>)</td><td>34.09%</td></tr><tr><td>Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>)</td><td>32.89%</td></tr><tr><td>Fifth Third Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FITB#NASDAQ">FITB</a>)</td><td>29.53%</td></tr><tr><td>PNC Financial Services Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>)</td><td>26.71%</td></tr><tr><td>Arthur J. Gallagher &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AJG#NYSE">AJG</a>)</td><td>25.74%</td></tr><tr><td>HSBC Holdings Plc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSBC#NYSE">HSBC</a>)</td><td>21.24%</td></tr><tr><td>Prudential Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRU#NYSE">PRU</a>)</td><td>13.69%</td></tr><tr><td>American International Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIG#NYSE">AIG</a>)</td><td>3.46%</td></tr></tbody></table><figcaption class="wp-element-caption">Note: Data as of market close on Dec. 17, 2024</figcaption></figure>



The iShares U.S. Financial ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) has risen 31.35% year-to-date.



Similarly, other financial-focused ETFs have seen strong gains. The Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) surged 30.3%, while the Vanguard Financials Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFH#NYSE">VFH</a>) climbed 30.89%.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/24/12/42546991/dows-rare-nine-day-decline-falls-behind-267-single-day-crashes-since-1900">Dow&#8217;s Rare Nine-Day Decline Falls Behind 267 Single-Day Crashes Since 1900: Is Tech Shift To Blame?</a></li>
</ul>



Photo courtesy: Shutterstock

Equities

Market Summary

General

COIN

FITB

HOOD

HSBC

IBKR

Fund Managers Increase Allocation To Banking And Insurance Stocks In December: Here Are The Best Performing Financial Stocks In 2024

U.S. stock futures climbed on Wednesday in premarket hours as Wall Street awaits the Federal Reserve&#8217;s final interest rate decision for 2024 and its monetary policy forecasts for 2025.



On Tuesday, the Dow Jones index fell for the <a href="https://www.benzinga.com/news/earnings/24/12/42546507/dow-records-longest-losing-streak-since-1978-nvidia-declines-fear-greed-index-in-neutral-zone">ninth session in a row</a> to record its longest losing streak since 1978.



The 10-year and two-year Treasury notes yielded 4.40% and 4.25%, respectively. The Federal Open Market Committee will announce its decision later in the day after a two-day meeting.



It is widely expected to announce another interest rate reduction at the conclusion of their meeting on Wednesday. Expectations of a 25 basis point rate cut rose to 95.4%, from 58.7% a month ago, according <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">to</a> CME Group&#8217;s FedWatch tool.



If the Fed cuts rates, it would be the third consecutive cut, bringing the federal funds rate down from its current level of 4.50% to 4.75%. Following the meeting, Chairman Jerome Powell&#8217;s remarks will be closely scrutinized by market participants.



Investors will receive another critical economic data point on Friday with the release of the November personal consumption expenditures (PCE) inflation index. This release follows other inflation indicators that suggest price increases accelerated in November.



Prior to that, GDP revisions on Thursday will reveal whether the economy maintained the previously estimated 2.8% growth rate for the third quarter.



<figure class="wp-block-table"><table><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>0.24%</td></tr><tr><td>S&amp;P 500</td><td>0.28%</td></tr><tr><td>Dow Jones</td><td>0.24%</td></tr><tr><td>Russell 2000</td><td>0.49%</td></tr></tbody></table></figure>



In premarket trading on Wednesday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was up 0.25% to $605.80 and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.24% to $537.09, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.



Cues From The Last Session



The <a href="https://www.benzinga.com/news/earnings/24/12/42546507/dow-records-longest-losing-streak-since-1978-nvidia-declines-fear-greed-index-in-neutral-zone">Dow Jones Industrial Average </a>extended its losing streak to nine consecutive sessions on Tuesday, its longest downturn since 1978. This negative trend weighed on the broader U.S. stock market.



While Tesla shares rallied after a positive analyst upgrade, Nvidia experienced a slight decline.



On the economic front, U.S. retail sales exceeded expectations in November, suggesting increased consumer spending. However, industrial production contracted, signaling a slowdown in manufacturing activity.



The S&amp;P 500 saw a broad-based decline, with industrials, energy, and financials leading the losses. Consumer discretionary stocks, on the other hand, bucked the trend and closed higher.



At the close of trading, the Dow Jones Industrial Average had fallen by approximately 268 points to 43,449.90. The S&amp;P 500 and Nasdaq Composite also ended the day lower, declining by 0.39% and 0.32%, respectively.



<figure class="wp-block-table"><table><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-0.32%</td><td>20,109.06</td></tr><tr><td>S&amp;P 500</td><td>-0.39%</td><td>6,050.61</td></tr><tr><td>Dow Jones</td><td>-0.61%</td><td>43,449.90</td></tr><tr><td>Russell 2000</td><td>-1.18%</td><td>2,334.08</td></tr></tbody></table></figure>



Insights From Analysts



The Dow Jones Industrial Average index last saw a nine-day fall for the first time since February 1978, according to FactSet data. However, the index has seen steeper crashes in a single day as compared to the cumulative erosion it has witnessed over these nine days.



Dow Jones has fallen nearly 3.47% to 43,449.90 points over the last nine days since Dec. 4, when it was at 45,014.04 points.



&#8220;Since 1900, I see 267 times it lost more than 3.47% in a single day,&#8221; said Ryan Detrick, chief market strategist at Carson Research.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The Dow is down 3.47% the past 9 days (and lower all 9 of them). Since 1900, I see 267 times it lost more than 3.47% in a single day.&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1869205905780388184?ref_src=twsrc%5Etfw">December 18, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



According to BlackRock, the global economy is undergoing a transformation that could keep shifting the long-term economic trend. They suggest that investors should shift to distinct drivers of risk and return.



&#8220;That creates a wide range of potential outcomes and a need to use scenarios to guide portfolio construction, we think. Government bonds have become a less reliable cushion against risk asset selloffs in this new regime. So investors should consider new diversifiers like gold and bitcoin – not to replace bonds, but to get exposure to distinct drivers of risk and return.&#8221;



&#8220;We see the AI buildout and adoption creating opportunities across sectors,&#8221; BlackRock&#8217;s note added.



&#8220;Overall, with so much uncertainty around tariffs and inflation, bond market volatility is unlikely to fade anytime soon,&#8221; said JPMorgan in their note.



&#8220;The week's economic data releases appeared to be enough for markets to solidify expectations for a rate cut at the upcoming Federal Reserve meeting,&#8221; said T Rowe Price in their weekly note.



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures" target="_blank" rel="noreferrer noopener">How To Trade Futures</a>



Upcoming Economic Data



Important data is slated to be released this week that will help investors determine the future course of action.



<ul>
<li>On Wednesday, housing starts, and building permit data for November will be announced at 8:30 a.m., ET.</li>



<li>The FOMC&#8217;s interest rate decision will be announced at 2:00 p.m., ET, and the Fed Chair Jerome Powell&#8217;s press conference will begin at 2:30 p.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Parazero Technologies Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PRZO#NASDAQ">PRZO</a>) was up 71.24% in premarket trading after it regained Nasdaq compliance.</li>



<li>Nukkleus Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NUKK#NASDAQ">NUKK</a>) gained 45.37% after the company announced it acquired a 51% controlling stake in Star 26 Capital.</li>



<li>Corvus Pharmaceuticals Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRVS#NASDAQ">CRVS</a>) rose 17.73% in premarket after it said that it would report interim data from its Phase 1 clinical trial evaluating Soquelitinib in patients with moderate to severe atopic dermatitis, on Dec. 18.</li>



<li>Applied DNA Sciences, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APDN#NASDAQ">APDN</a>) fell 13.04% in pre-market trading after reporting weak quarterly sales.</li>



<li>Quantum Computing Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QUBT#NASDAQ">QUBT</a>) was up 13.28% after it received a NASA contract doe Goddard Space Flight Center to use its entropy quantum optimization machine to help the space agency&#8217;s imaging.</li>



<li>Investors are awaiting earnings results from General Mills, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>), Jabil Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JBL#NYSE">JBL</a>, )) and Micron Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) today.</li>
</ul>



Commodities, Bonds And Global Equity Markets:



Crude oil futures were lower in the early New York session by 0.03% to hover around $70.08 per barrel.



The gold spot index rose by 0.08% to $2,664.21 per ounce. The dollar index was up 0.04% to 106.997 level.



Asian markets were mixed on Wednesday, as Hong Kong&#8217;s Hang Seng, China&#8217;s CSI 300, and South Korea&#8217;s Kospi index advanced. Whereas, Japan&#8217;s Nikkei 225, India&#8217;s S&amp;P BSE Sensex, and Australia&#8217;s ASX 200 index declined. Most European markets advanced.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/24/12/42548385/fund-managers-increase-allocation-to-banking-and-insurance-stocks-in-december-here-are-the-best-performing-financial-stocks-in-2024">Fund Managers Increase Allocation To Banking And Insurance Stocks In December: Here Are The Best Performing Financial Stocks In 2024</a></li>
</ul>



Photo courtesy: Wikimedia

Futures

Pre-Market Outlook

APDN

CRVS

NUKK

PRZO

QUBT

US Stocks To Open Higher As Rate Cut Expectations Surge: All Eyes On Dow Jones To Break Its 9-Day Losing Streak

The U.S. has the world&#8217;s largest companies by market capitalization and about two-thirds of the MSCI World Index is dominated by companies based out of America.



What Happened: U.S.-based companies ranking among the world&#8217;s top ten firms by market capitalization include Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), and Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>).



These magnificent seven firms along with Broadcom are the beneficiaries of the U.S. tech and AI boom. The remaining two non-U.S. firms that make up the top ten include Saudi Arabian Oil Co and Taiwan Semiconductor Mfg Co Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSMC#NYSE">TSMC</a>).



According to an X post by Kevin Gordon, director and senior investment strategist at Charles Schwab, &#8220;Such an imbalance has not been seen since the late 1980s.&#8221; The data shared by him shows nine out of the top ten companies by market capitalization were based out of the U.S. in the 1980s.



"…the US, with 4% of the world's population, roughly a quarter of global GDP and a third of global profits, now accounts for more than two-thirds of the MSCI World index's capitalization. Such an imbalance has not been seen since the late 1980s…,&#8221; he said.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">"…the US, with 4% of the world's population, roughly a quarter of global GDP and a third of global profits, now accounts for more than two-thirds of the MSCI World index's capitalization. Such an imbalance has not been seen since the late 1980s…" ⁦<a href="https://twitter.com/Gavekal?ref_src=twsrc%5Etfw">@Gavekal</a>⁩ <a href="https://t.co/OKO0XCPld5">pic.twitter.com/OKO0XCPld5</a>&mdash; Kevin Gordon (@KevRGordon) <a href="https://twitter.com/KevRGordon/status/1868748830851633403?ref_src=twsrc%5Etfw">December 16, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Why It Matters: Additionally, the top ten constituents in the MSCI World index are U.S.-based firms. This index captures 1,397 large and mid-cap companies across 23 developed markets.



According <a href="https://www.msci.com/documents/10199/178e6643-6ae6-47b9-82be-e1fc565ededb">to</a> MSCI&#8217;s latest release, dated Nov. 29, the U.S. has a weightage of 73.92% in the index, followed by Japan with 5.23%, the United Kingdom with 3.44%, Canada with 3.1% and France with 2.5%.



The index has the highest exposure of 25.29% to information technology companies, followed by 16.3% to financial firms.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/price-target/24/12/42513306/elon-musks-tesla-nearly-5-times-more-expensive-than-industry-average-stock-surges-over-60-since-election">Elon Musk&#8217;s Tesla Nearly 5 Times More Expensive Than Industry Average: Stock Surges Over 60% Since Election</a></li>
</ul>



Photo courtesy: Shutterstock

Global

AAPL

AMZN

AVGO

GOOG

GOOGL

MSCI

MSFT

NVDA

TSLA

TSMC

US Stocks Led By Apple, Nvidia, And Other Tech Giants Dominate Nearly Two-Thirds Of MSCI World Index, Drawing Parallels To 1980s Peak

Leading cryptocurrencies stayed muted on Tuesday ahead of the Federal Reserve's last policy decision of 2024.



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:30 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>-0.18%</td><td>$105,942.00</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-2.29%</td><td>$3,873.95</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-1.68%</td><td>$0.3916</td></tr></tbody></table></figure>



What Happened: Bitcoin made a new all-time high of $108,000 in early trading hours before falling sharply to $105,000 shortly thereafter. Volatility persisted throughout the day, with the leading coin bouncing around and below $107,000.



Ethereum's decline was steeper, as it dropped below $4,000 to a low of $3,800.



The total cryptocurrency liquidations surpassed $316 million in the last 24 hours, with long liquidations accounting for an overwhelming share.



Bitcoin's Open Interest rose despite the price weakness, suggesting the opening of new short positions. Nearly 60% of Binance futures traders were betting against Bitcoin, according to the Long/Short Ratio.



Market sentiment remained in the "Extreme Greed" region, per the Cryptocurrency Fear &amp; Greed Index.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:30 p.m. ET)</td></tr><tr><td>Pudgy Penguins (PENGU)</td><td>+487.34%</td><td>$0.02936</td></tr><tr><td>Bitget Token (BGB)</td><td>+12.58%</td><td>$3.90</td></tr><tr><td>Cronos (CRO)</td><td>+11.16%</td><td>$0.1941</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.78 trillion, following an increase of 2.43% over the last 24 hours.



Major stock indexes closed in the red on Tuesday. The Dow Jones Industrial Average fell for the ninth consecutive day, dropping 267.58 points, or 0.61%, to close at 43,449.90. The S&amp;P 500 lost 0.39%, ending at 6,050.61, while the tech-heavy Nasdaq Composite reversed from its record highs, falling 0.32% to 20,109.06.



Investors are now preparing for the final monetary policy decision on Wednesday. The Fed is widely expected to enact a 0.25% cut, with traders pricing in a 97% possibility of such a scenario, as per the <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">CME FedWatch</a> tool.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Widely followed cryptocurrency analyst Rekt Capital said that this was only the start of Bitcoin's parabolic phase, drawing parallels with historical price action.



"Historically, this phase has lasted on average ~300 days Bitcoin is only on day 41 of its parabolic phase," the analyst stated.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> has only just begun its Parabolic Phase in the cycle Historically, this phase has lasted on average ~300 days Bitcoin is only on Day 41 of its Parabolic Phase<a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> <a href="https://twitter.com/hashtag/Crypto?src=hash&amp;ref_src=twsrc%5Etfw">#Crypto</a> <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a>&mdash; Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1869042931518374304?ref_src=twsrc%5Etfw">December 17, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Cryptocurrency influencer Quinten Francois said that the Bitcoin cycle was being pushed by institutional investors and not retail.



"BTC is knocking at its ATH while there is no hype or euphoria. Why? Retail is in alts,&#8221; Francois added.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> is knocking at its ATH while there is no hype or euphoria Why? Retail is in alts This <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> cycle isn't pushed by retail It's the institutional cycle&mdash; Quinten &#x7C; 048.eth (@QuintenFrancois) <a href="https://twitter.com/QuintenFrancois/status/1868920066097697080?ref_src=twsrc%5Etfw">December 17, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Data fetched from Google Trends also <a href="https://trends.google.com/trends/explore?geo=US&amp;q=bitcoin&amp;hl=en">showed </a>that search interest for Bitcoin has dwindled sharply from its peak just after Donald Trump's win last month.



Photo by Avi Rozen on Shutterstock



Read Next:&nbsp;&nbsp;&nbsp;&nbsp;



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42535718/raoul-pal-predicts-violent-upside-for-bitcoin-targets-250000">Raoul Pal Predicts &#8216;Violent Upside&#8217; For Bitcoin, Targets $250,000</a></li>
</ul>

Movers

$DOGE

$ETH

Bitcoin, Ethereum, Dogecoin Stay Muted Before Fed's Interest Rate Decision: Analyst Says BTC In Parabolic Phase, Reveals Its Duration

Rep. Marjorie Taylor Greene (R-Ga.) voiced her support for the privatization of the United States Postal Service, amidst its financial woes on Tuesday.



What Happened: In a recent post on X, Greene expressed her long-held belief in the need for privatizing the USPS. She emphasized that her newly formed committee, along with the support of Elon Musk and Vivek Ramaswamy&#8211;<a href="https://www.benzinga.com/news/global/24/11/41927289/trump-appoints-elon-musk-and-vivek-ramaswamy-to-lead-doge-targeting-bureaucracy-and-65-trillion-federal-spending-we-will-not-go-gently">headed</a> Department of Government Efficiency, is gaining momentum in pushing for this change.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">We need to privatize <a href="https://twitter.com/USPS?ref_src=twsrc%5Etfw">@USPS</a>—I've been saying it for years!<a href="https://twitter.com/DOGE?ref_src=twsrc%5Etfw">@DOGE</a> and my new committee have a lot of momentum heading into next year. The American people gave President Trump a mandate, but they gave all of us in Washington a mandate, too. Selling the Postal Service is a smart… <a href="https://t.co/WqEKXddlFH">pic.twitter.com/WqEKXddlFH</a>&mdash; Rep. Marjorie Taylor Greene&#x1f1fa;&#x1f1f8; (@RepMTG) <a href="https://twitter.com/RepMTG/status/1869110704998846596?ref_src=twsrc%5Etfw">December 17, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/tech/24/12/42500224/elon-musks-mother-opens-up-about-his-friendship-with-barron-trump-bonded-over-out-of-this-world-exploration?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk&#8217;s Mother Opens Up About His Friendship With Barron Trump: &#8216;Bonded Over Out-Of-This-World Exploration&#8217;</a>



She stated, &#8220;Selling the Postal Service is a smart decision that keeps our promise to the American people to cut waste, fraud, and abuse.&#8221; 



She also mentioned that the American people have given a mandate to President-elect Donald Trump and all of Washington, implying a collective responsibility to address the USPS&#8217;s financial struggles. 



Notably, Greene chairs the Delivering on Government Efficiency subcommittee in the next Congress. She has previously said that the goal of DOGE is to &#8220;bring accountability and GUT useless government agencies.&#8221;



Why It Matters: The USPS has been <a href="https://www.benzinga.com/news/24/12/42496990/trump-eyes-privatization-of-postal-service-amid-9-5-billion-loss">grappling with financial difficulties</a>, reporting a massive $9.5 billion loss in the fiscal year ending September 30. The agency&#8217;s liabilities have soared to nearly $80 billion, primarily due to declining mail volumes and slower-than-expected growth in parcel shipping.



Trump is reportedly considering the privatization of the USPS as a potential solution to these financial challenges. The move towards privatization is seen as a means to overhaul the agency and address its mounting liabilities.



Privatizing the USPS can potentially reshape consumer shipping, favoring profitable routes while leaving rural areas underserved. FedEx Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) and United Parcel Service, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPS#NYSE">UPS</a>), already dominate the parcel market and might increase their influence, potentially impacting millions relying on affordable mail services.



For privatization to occur, approval would be needed from the USPS Board of Governors, consisting of 11 members led by Postmaster General Louis DeJoy, CNBC <a href="https://www.nbcnews.com/politics/politics-news/trump-biden-signal-emerging-fight-future-postal-service-rcna184451">reported</a>.



Meanwhile, President Joe Biden announced his intention to renominate former general counsel for the American Postal Workers Union, Anton Hajjar, to the Postal Service Board of Governors. This will require swift Democratic action to confirm him before Republicans gain Senate control in January. Hajjar, previously nominated by Biden and confirmed in 2021, served a term that ended in December 2023. 



Check This Out:



<ul>
<li>Lawmakers Made Huge Investments This Year. <a href="https://www.benzinga.com/gov-trades">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
</ul>



Photo courtesy: Shutterstock



This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

Politics

Marjorie Taylor Greene Pushes To Sell Off USPS Amid DOGE Momentum: 'We Need To Privatize...I've Been Saying It For Years'

Nissan Motor Co. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NSANY#OTC">NSANY</a>)&nbsp; shares surged 22.54% in Tokyo on Wednesday <a href="https://www.benzinga.com/news/global/24/12/42541842/japanese-auto-giants-nissan-honda-eye-merger-says-nikkei">after the reports of merger talks</a> with Honda Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HMC#NYSE">HMC</a>). Honda&#8217;s stock is trading down 2%.



According to the report, the two automakers are exploring a merger under a holding company structure, with plans to include Mitsubishi Motors Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MMTOF#OTC">MMTOF</a>), where Nissan holds a 24% stake. A memorandum of understanding is expected soon. Mitsubishi Motor shares were seen trading over 13% higher in Tokyo at the time of writing.



If finalized, the combined Nissan-Honda-Mitsubishi group could achieve annual sales exceeding 8 million vehicles, making it one of the world's largest automakers. However, it would still trail Japan&#8217;s Toyota Motor Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>), with 11.2 million sales in 2023, and Germany's Volkswagen AG at 9.2 million.



Year-to-date, Nissan shares have fallen 28.3% trading at 412 Japanese Yen ($2.68), while Honda is trading at 1,270 Japanese Yen ($8.27), down 15.7%. Meanwhile, Mitsubishi Motor stock is up 1.49% this year trading at 463 Japanese Yen ($3.01).



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<li><a href="https://www.benzinga.com/news/legal/24/12/42538146/asml-lawsuit-drama-semiconductor-titan-faces-investor-backlash-after-stock-sinks-27-in-6-months">ASML Lawsuit Drama: Semiconductor Titan Faces Investor Backlash After Stock Sinks 27% In 6 Months</a></li>
</ul>



Image Via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Asia

MMTOF

NSANY

Nissan Stock Soar Over 20% On Merger Talks With Honda, Mitsubishi Spikes

The U.S. stock market has generally delivered solid gains around Federal Reserve meetings in 2024, signaling investor optimism as the central bank prepares for its final policy decision of the year <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42514008/fed-poised-to-cut-interest-rates-by-0-25-this-week-heres-why-your-focus-should-shift-to-other-signals">on Wednesday.</a>



An investor adopting a short-term long strategy — buying the S&amp;P 500 index at market close the day before a Fed meeting and selling at the close the day after — would have realized a median return of 1.1% over the last seven meetings.



According to data compiled by Seasonax, this strategy has yielded positive returns six out of seven times this year.



The best-performing event came during the September FOMC Meeting, when the Federal Reserve cut interest rates by 50 basis points. In such an instance, a long position opened at 5,634 points on Sept. 17 and closed at 5,713 points two days later delivering a 1.4% gain.



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Start Date</th><th>Start S&amp;P 500 Price</th><th>End Date</th><th>End S&amp;P 500 Price</th><th>Profit %</th></tr></thead><tbody><tr><td>Jan 30, 2024</td><td>4,924.97</td><td>Feb 1, 2024</td><td>4,906.19</td><td>-0.38%</td></tr><tr><td>Mar 19, 2024</td><td>5,178.51</td><td>Mar 21, 2024</td><td>5,241.53</td><td>+1.22%</td></tr><tr><td>Apr 30, 2024</td><td>5,035.69</td><td>May 2, 2024</td><td>5,064.20</td><td>+0.57%</td></tr><tr><td>Jun 11, 2024</td><td>5,375.32</td><td>Jun 13, 2024</td><td>5,433.74</td><td>+1.09%</td></tr><tr><td>Jul 30, 2024</td><td>5,436.44</td><td>Aug 1, 2024</td><td>5,446.68</td><td>+0.19%</td></tr><tr><td>Sep 17, 2024</td><td>5,634.58</td><td>Sep 19, 2024</td><td>5,713.64</td><td>+1.40%</td></tr><tr><td>Nov 6, 2024</td><td>5,929.04</td><td>Nov 8, 2024</td><td>5,995.54</td><td>+1.12%</td></tr></tbody><tfoot><tr><td></td><td></td><td></td><td></td><td>Median: +1.1%</td></tr></tfoot></table></figure>



<h3 class="wp-block-heading">Patience Pays: Longer Holds Double Returns</h3>



While short-term strategies around Fed meetings have been profitable, holding the S&amp;P 500, as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), for 15 sessions post-meeting significantly amplifies returns.



Investors using this extended strategy achieved an average profit of 3.29%, more than double the one-day gain.



Crucially, every Fed meeting this year resulted in a positive return over the 15-session period.



The data supports the notion that investors often require more time to fully digest the implications of a Fed meeting, underscoring the importance of patience and the benefits of holding onto stocks rather than succumbing to the temptation of selling in the immediate aftermath.



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Start Date</th><th>Start Price</th><th>End Date</th><th>End Price</th><th>Profit %</th></tr></thead><tbody><tr><td>Jan 30, 2024</td><td>4,924.97</td><td>Feb 22, 2024</td><td>5,087.03</td><td>+3.29%</td></tr><tr><td>Mar 19, 2024</td><td>5,178.51</td><td>Apr 11, 2024</td><td>5,199.06</td><td>+0.40%</td></tr><tr><td>Apr 30, 2024</td><td>5,035.69</td><td>May 22, 2024</td><td>5,307.01</td><td>+5.39%</td></tr><tr><td>Jun 11, 2024</td><td>5,375.32</td><td>Jul 5, 2024</td><td>5,567.19</td><td>+3.57%</td></tr><tr><td>Jul 30, 2024</td><td>5,436.44</td><td>Aug 21, 2024</td><td>5,620.85</td><td>+3.39%</td></tr><tr><td>Sep 17, 2024</td><td>5,634.58</td><td>Oct 9, 2024</td><td>5,792.04</td><td>+2.79%</td></tr><tr><td>Nov 6, 2024</td><td>5,929.04</td><td>Nov 29, 2024</td><td>6,032.38</td><td>+1.74%</td></tr></tbody><tfoot><tr><td></td><td></td><td></td><td></td><td>Median: +3.29%</td></tr></tfoot></table></figure>



<h3 class="wp-block-heading">Will December Break The Trend? The Stakes Are Higher</h3>



As the Federal Reserve prepares for its final policy meeting of 2024, all eyes are on whether markets will continue their winning streak or finally break the trend. Investors broadly anticipate a 25-basis-point rate cut, bringing the target range to 4.25%-4.5%.



Yet the true driver of market reactions will likely be the Fed&#8217;s updated macroeconomic outlook, which includes forecasts on inflation, growth, and interest rates for the next three years.



The backdrop for this meeting is notably different compared to earlier in the year. Recent economic data has shown unexpected resilience, complicating the Fed&#8217;s path forward. 



Consumer inflation rose for a second consecutive month in November, reaching 2.7% year-over-year, while producer prices accelerated to 3%, their fastest pace since February 2023. Signs of economic strength extend further: retail sales surged beyond expectations in November, while business activity in the services sector posted its strongest expansion since late 2021.



<h3 class="wp-block-heading">Powell Now Holds Market Pendulum</h3>



For Fed Chair Jerome Powell, the task will be delicate. He must strike a balance between acknowledging persistent economic momentum and reassuring markets that policymakers remain committed to a gradual path of rate cuts. 



Any signal that rate reductions could slow in 2025 may test investor optimism, particularly as Fed funds futures price only a 60% chance of another cut by March.



This makes December&#8217;s meeting a critical juncture.



If Powell&#8217;s remarks reinforce confidence in the Fed&#8217;s ability to guide a soft landing for the economy, the S&amp;P 500 could extend its streak of positive returns seen around FOMC decisions this year. On the other hand, a more cautious tone, hinting at concerns over sticky inflation or the need to pause rate cuts, could deliver a reality check to markets that have grown accustomed to steady gains.



The question is no longer just about another short-term bounce. Instead, December&#8217;s meeting may set the tone for market sentiment heading into 2025. 



Read Next:



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<li><a href="https://www.benzinga.com/news/retail-sales/24/12/42535296/stocks-slip-as-strong-november-retail-sales-raise-concerns-over-2025-fed-rate-cuts">Stocks Slip As Strong November Retail Sales Raise Concerns Over 2025 Fed Rate Cuts</a></li>
</ul>



Fed Chair Jerome Powell illustration created using artificial intelligence via Midjourney.

Fed Meetings Made Stock Traders Richer In 2024: Could Wednesday Bring Last Big Rally?

Murder suspect Luigi Mangione was indicted Tuesday on upgraded murder charges in the death of UnitedHealthcare CEO Brian Thompson and will no longer fight extradition from<a href="https://www.benzinga.com/news/legal/24/12/42423214/luigi-mangione-fights-extradition-to-new-york-on-murder-charge-shouts-at-press-outside-courthouse"> Pennsylvania to New York.</a>



What Happened: Thompson, who was the CEO of UnitedHealth Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>)&#8217;s insurance unit UnitedHealthcare, <a href="https://www.benzinga.com/general/health-care/24/12/42316904/unitedhealthcare-ceo-brian-thompson-fatally-shot-outside-nyc-hotel">was gunned down </a>Dec. 4 outside a Manhattan building. 



As the suspect in the case, Mangione faces an upgraded charge of first-degree murder along with two counts of murder in the second degree, which includes a charge of murder in the second degree as an act of terrorism, Manhattan District Attorney Alvin Bragg announced Tuesday.



"Our work will never be able to undo the fact that a life was lost," Bragg said.



The upgraded first-degree murder charge comes in the state of New York, where a special list of elements are needed to charge a person with the crime, including the intention to commit terrorism, murder of a judge, cop or first responder or other special instances. 



The charges mean Mangione faces a potential sentence of life in prison without the possibility of parole if he is convicted, as reported by <a href="https://www.cnn.com/2024/12/17/us/luigi-mangione-ceo-shooting/index.html">CNN</a>.



The indictment is "for the brazen, targeted and premeditated shooting of Brian Thompson," Bragg said after reading off the charges.



Mangione's 11-count indictment also includes weapons and forgery charges.



The suspect's attorney Karen Friedman Agnifilo told CNN that he will not fight extradition to New York. A hearing is set for Thursday in Pennsylvania to decide on the next steps to return Mangione to New York.



New York City Police Commissioner Jessica Tisch said the indictment moves the case one step closer to getting justice for Thompson and his family. Tisch also provided comment on the growing praise Mangione is receiving as a potential hero, as <a href="https://www.nbcnews.com/news/us-news/luigi-mangione-indicted-first-degree-murder-charge-grand-jury-unitedhe-rcna184313">reported </a>by NBC News.



"This was a senseless act of violence. It was a cold and calculated crime that stole a life and put New Yorkers at risk. We don't celebrate murders, and we don't lionize the killing of anyone," Tisch said.



Read Also: <a href="https://www.benzinga.com/news/legal/24/12/42418763/unitedhealthcare-ceo-murder-suspect-chronic-pain-unabomber-fascination-isolation-details-emerge">UnitedHealthcare CEO Murder Suspect: Chronic Pain, Unabomber Fascination, Isolation Details Emerge</a>



Why It's Important: The murder case has been closely followed by residents of New York and brought worldwide attention due to the potential motive of Mangione lashing out over the alleged corporate greed of the health insurance industry.



While Mangione and his immediate family were not insured by UnitedHealthcare, the company may have been a target due to its massive size.



Mangione's arrest at a Pennsylvania McDonald's saw a rise <a href="https://www.benzinga.com/general/restaurants/24/12/42427146/pennsylvania-mcdonalds-where-unitedhealthcare-ceo-murder-suspect-arrested-gets-review-bombed-more-like-narc-donalds">in negative reviews</a> for the location, accusing the restaurant employees and patrons of being snitches. 



Public sympathy for Mangione can be found on social media. A recent Joe Rogan podcast episode<a href="https://www.benzinga.com/media/24/12/42473433/joe-rogan-on-public-sympathy-for-unitedhealthcare-ceo-murder-suspect-health-insurance-a-dirty-dirty-business"> saw the host</a> say the health insurance sector is a "dirty business."



Rogan suggested UnitedHealthcare's alleged high claim denial rate may have been a reason why the public was not showing sympathy for Thompson.



&#8220;It&#8217;s a dirty, dirty business. The business of insurance is f&#x2A;&#x2A;&#x2A;ing gross. It&#8217;s gross. Especially health care insurance,&#8221; Rogan said.



A manifesto document found on Mangione reportedly contained comments about health insurance companies focusing on profits and greed over public health.



Mangione reportedly suffered from chronic back pain, which kept him from activities like surfing and intimate relationships.



Members of Congress are&nbsp;<a href="https://www.benzinga.com/general/health-care/24/12/42450947/bipartisan-lawmakers-aim-to-break-up-health-care-giants-with-new-legislation" target="_blank" rel="noreferrer noopener">targeting the health insurance sector</a>&nbsp;and companies like UnitedHealth Group could be forced to divest portions of their business if a new bill is passed.



UNH Price Action: UnitedHealth stock was down 3% to $485.52 Tuesday versus a 52-week trading range of $436.38 to $630.73. The stock is down 10% year-to-date with shares down 18% over the last month.



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<li><a href="https://www.benzinga.com/news/24/12/42445163/wack-the-ceo-at-a-convention-says-united-health-care-murder-suspect-luigi-mangione-in-papers-found-by-pa-cops">&#8216;Wack The CEO,&#8217; United Health Care Murder Suspect Luigi Mangione Says In Papers Found By Police</a></li>
</ul>



Photo via the Pennsylvania State Police.

Legal

Insurance

Luigi Mangione Indicted On First-Degree Murder Charge In UnitedHealthcare CEO's Death: 'Senseless Act Of Violence'

President Joe Biden has endorsed a ban on Congress Trading, suggesting that members of Congress should not be able to buy and sell stocks in options while they<a href="https://www.benzinga.com/topic/congress-trading"> are in office.</a>



What Happened: Congress Trading has been a popular topic among retail investors for years with <a href="https://www.benzinga.com/markets/options/24/10/41459593/nvidia-stock-hits-all-time-highs-heres-how-much-nancy-pelosis-500-call-options-are-worth-today">the trading activity </a>of former Speaker of the House Nancy Pelosi closely followed thanks to the often winning trades made by her husband Paul Pelosi.



Investors also monitor potential conflicts of interest trades, such as Congress members <a href="https://www.benzinga.com/general/politics/24/04/38254235/congress-members-invest-in-defense-stocks-as-middle-east-tensions-mount-how-pelosi-gottheimer-he">buying war stocks</a> during increased Middle East tensions and which members of Congress are buying <a href="https://www.benzinga.com/markets/equities/24/12/42447434/democratic-congressman-bought-djt-stock-after-2024-election-months-after-saying-donald-trump-unfit-to-serve">Trump-linked stocks</a> and <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42330146/congressman-buys-meme-coins-ski-mask-dog-coin-climbs-in-value-after-disclosure-i-liked-the-coins-so-i-bought-them">meme coins.</a>



President Biden is calling for an end to the current legal practice.



"Nobody in the Congress should be able to make money in the stock market while they're in the Congress," Biden said in an interview with political advisor Faiz Shakir.



The video, which is set to be released later this week, will be published by A More Perfect Union, as <a href="https://apnews.com/article/joe-biden-congress-stock-trading-ban-dd9a17d7ea96a8f3a4705ebe1504c72d">reported </a>by the Associated Press, which was able to view the video ahead of its release.



Biden's comment comes as members of Congress are currently able to buy and sell stocks, options, and cryptocurrency as long as they properly disclose the trades within the appropriate time limit of 45 days.  



In the interview, Shakir said he admired the fact that Biden didn't get into stocks early like Google, Boeing, Microsoft, Nvidia and Amazon while he was a senator.



"I don't know how you look your constituents in the eye and know, because the job they gave you, gave you an inside track to make more money. I think we should be changing the law," Biden added.



Biden said he was able to live on a Congressional salary and not worry about becoming rich through playing the stock market previously.



The comments made in the interview mark a change in Biden's opinion on the issue. Biden previously refused to weigh in on the issue of congressional trading, saying he would "let members of leadership in Congress and members of Congress determine what the rules should be," as his previous press secretary Jen Psaki reported.



Did You Know?



<ul>
<li>Congress Is Making Huge Investments. <a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent121724">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
</ul>



Why It's Important: There have been numerous calls to vote for Congress members to vote for a ban on Congressional trading, but a vote has not happened.



Representative Ro Khanna (D-Calif.) <a href="https://www.benzinga.com/general/politics/24/05/39096827/exclusive-khanna-says-shameful-congress-members-profited-from-stocks-calls-for-trading-ban-makin">previously told Benzinga </a>that he will continue to advocate for a vote to ban the practice.



"We should have a vote on it," Khanna told Benzinga.



Khanna said that despite his continued speeches in the House advocating for a ban on stock trading, there is a "collective shrug" in Congress regarding the issue.



&#8220;It is shameful that over three years after the pandemic with the shenanigans from those senators who sold their stock after learning of the pandemic&#8221; there still hasn&#8217;t been a vote, Khanna said.



Khanna said that people were outraged at the time when several senators sold their stocks in tourism and other sectors that would be hurt, knowing that the economy could crash from the COVID-19 pandemic.



&#8220;Senators making money when the rest of the country was suffering during the pandemic.&#8221;



With Biden now advocating for the ban before the end of his presidential term, the situation will be closely monitored to see if Congress votes on the matter.



Unusual Whales helped<a href="https://www.benzinga.com/markets/penny-stocks/23/02/30768851/want-to-copy-master-trader-nancy-pelosis-investments-theres-an-etf-for-that-here-are-the-hol" target="_blank" rel="noreferrer noopener">&nbsp;launch two Congress Trading themed ETFs&nbsp;</a>in 2023 through a collaboration with Subversive. The&nbsp;Unusual Whales Subversive Democratic Trading ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/NANC#BATS">NANC</a>)&nbsp;and&nbsp;Unusual Whales Subversive Republican Trading ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/KRUZ#BATS">KRUZ</a>)&nbsp;provide investors with opportunities to invest in the same stocks as members of Congress.



Benzinga will continue to share Congressional trading activity of note. For more on Congress trades, check out Benzinga&#8217;s&nbsp;<a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent121724" target="_blank" rel="noreferrer noopener">Government Trades page.</a>



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/general/politics/24/01/36459015/10-best-stock-traders-in-congress-in-2023-spoiler-nancy-pelosi-is-back-on-the-list">10 Best Stock Traders In Congress In 2023 (Spoiler: Nancy Pelosi Has Reentered The Chat)</a></li>
</ul>



Photo by lev radin on Shutterstock

KRUZ

NANC

Biden Backs Congressional Stock Trading Ban: 'Inside Track' To Wealth

The performance gap between the cap-weighted S&amp;P 500 — tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — and its equal-weighted sibling, the Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>), has blown out to over 4 <a href="https://www.benzinga.com/markets">percentage points in December. </a>



This marks the widest monthly gap since May 2023, reflecting how a narrow group of stocks is shouldering the market's returns in the last month of the year. 



As of Dec. 17, only 90 out of 500 stocks in the S&amp;P 500 are in positive territory month-to-date, a shockingly narrow market breadth.



Excluding Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), all of the Magnificent Seven stocks — Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Alphabet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) — have posted gains this month.



If Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), which recently surpassed the $1 trillion market-cap threshold, is added to the mix, an equal-weighted portfolio of these eight stocks has already delivered a stunning 16% return so far in December.



That stands in stark contrast to the broader market's struggles as the equal-weighted S&amp;P 500 index fell by 3% month to date. 



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Name</th><th>Price Chg. % (MTD)</th><th>Market Cap ($)</th></tr></thead><tbody><tr><td>Broadcom Inc.</td><td>48.27</td><td>1.12 trillion</td></tr><tr><td>Tesla, Inc.</td><td>37.03</td><td>1.52 trillion</td></tr><tr><td>Alphabet Inc.</td><td>16.72</td><td>2.43 trillion</td></tr><tr><td>Amazon.com, Inc.</td><td>11.18</td><td>2.43 trillion</td></tr><tr><td>Meta Platforms, Inc.</td><td>9.15</td><td>1.58 trillion</td></tr><tr><td>Microsoft Corporation</td><td>7.25</td><td>3.38 trillion</td></tr><tr><td>Apple Inc.</td><td>6.52</td><td>3.82 trillion</td></tr><tr><td>NVIDIA Corporation</td><td>-5.94</td><td>3.18 trillion</td></tr></tbody><tfoot><tr><td>Average</td><td>16.26%</td><td></td></tr></tfoot></table></figure>



<h3 class="wp-block-heading">Weak Breadth: Bad Sign Or Hidden Opportunity?</h3>



Ryan Detrick, CMT, chief market strategist at Carson Group LLC, highlighted a notable trend. 



The S&amp;P 500 has now posted 11 consecutive days of more decliners than advancers, tying the longest streak since 1996. 



While many investors might view this as a bearish signal, historical data paints a surprisingly different picture.



"Many claim this is bearish, but is it?" Detrick stated. "Looking at the longest streaks ever actually appears to be rather bullish. Significant outperformance across the board out one year."



Here's how the S&amp;P 500 performed historically following similar stretches of negative breadth:



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Date</th><th>Days of Negative Breadth</th><th>1-Month</th><th>3-Months</th><th>6-Months</th><th>1-Year</th></tr></thead><tbody><tr><td>9/10/1991</td><td>8</td><td>-2.1%</td><td>-1.4%</td><td>6.0%</td><td>7.9%</td></tr><tr><td>6/20/1996</td><td>11</td><td>-4.3%</td><td>3.2%</td><td>10.5%</td><td>35.6%</td></tr><tr><td>12/24/2018</td><td>8</td><td>13.3%</td><td>19.3%</td><td>23.9%</td><td>37.1%</td></tr><tr><td>Average</td><td>—</td><td>3.0%</td><td>4.8%</td><td>8.6%</td><td>14.8%</td></tr><tr><td>All Years Avg</td><td>(1950–2023)</td><td>0.7%</td><td>2.2%</td><td>4.4%</td><td>9.0%</td></tr></tbody></table></figure>



Notably, the historical data shows that returns tend to improve significantly over the next year, with 87.5% of cases showing positive performance after a prolonged stretch of weak breadth.



In essence, bad breadth doesn't necessarily spell bad news. If history holds, weak market participation could signal stronger returns ahead.



Yet investors may have to deal with an increase in volatility and potential for sharp pullbacks.



Adam Turnquist, chief technical strategist at LPL Financial, took a more pessimistic view on the S&amp;P 500's 11-day streak of decliners outpacing gainers.



&#8220;The last time this occurred was on June 20, 1996 — only days before a sharp 10% drawdown over the following month that ended almost directly on support from the rising 200-dma. While this does not imply a market top or even correction is imminent, it does add to the evidence of potentially weak footing underneath this latest advance,&#8221; he stated. 



<h3 class="wp-block-heading">Growth Sectors Shine, But Broader Rebounds Possible</h3>



The performance story has become sharply sector-specific. 



Stephen Suttmeier, CFA, CMT, analyst at Bank of America, indicated that December's gains have been heavily concentrated in growth sectors, such as Discretionary, Communications Services and Technology.



"All other sectors showed a negative performance," Suttmeier said, highlighting the underperformance of the equal-weighted S&amp;P 500 ETF (RSP). Yet, he remains cautiously optimistic, suggesting of potential &#8220;rebounds into year-end for both the NYSE Composite Index (NYA) and RSP."



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</ul>



Photo via Shutterstock.

Large Cap

Tech

Market Breadth Worsens As Tech Giants Break Free From S&P 500 Reality: Is This Bullish Or Bearish For 2025?

The stock market edged lower by midday Tuesday as investors treaded cautiously ahead of the Federal Reserve&#8217;s policy <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42514008/fed-poised-to-cut-interest-rates-by-0-25-this-week-heres-why-your-focus-should-shift-to-other-signals">decision scheduled for Wednesday.</a>



Although a rate cut appeared widely priced in—with Fed Funds futures assigning a 96% probability—investors are fully focused on the Fed's forward guidance and Chair Jerome Powell&#8216;s remarks, particularly in light of recent robust economic data.



November's retail sales data showed an unexpected rebound, rising 0.7% month-over-month, surpassing expectations of 0.5%. On an annual basis, sales climbed 3.8%, the fastest pace since December 2023, driven by strong auto sales growth.



Semiconductor stocks led the downturn amid renewed geopolitical tensions following reports that China is broadening antitrust scrutiny on U.S. chipmakers&#8217; acquisitions in recent years. Last week, Beijing launched an investigation into Nvidia Corp.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) 2019 acquisition of Mellanox Technologies.



The iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) declined 1.5%, weighed down by sharp losses in major chip stocks. Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) dropped over 5%, while Marvell Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) plunged over 8%.



By midday, the major U.S. indices were in negative territory. The S&amp;P 500 slipped 0.4%, the Dow Jones Industrial Average fell 0.6%, and the Nasdaq 100 declined 0.4%.



Both the U.S. dollar and Treasury yields remained steady, reflecting cautious positioning by institutional investors.



In commodities, gold dipped 0.3%, while natural gas and oil prices fell 2% and 1%, respectively, signaling continued weakness in the energy sector.



Cryptocurrencies continued to outperform. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) climbed 1.3% to surpass $107,000, reaching a market capitalization of $2.13 trillion. The total cryptocurrency market value rose to $3.68 trillion, a new record high. 



<h3 class="wp-block-heading">Tuesday&#8217;s Performance In Major US Indices, ETFs</h3>



<figure class="wp-block-table"><table><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day Chg %</td></tr><tr><td>S&amp;P 500</td><td>6,050.50</td><td>-0.4%</td></tr><tr><td>Nasdaq 100</td><td>22,000.37</td><td>-0.4%</td></tr><tr><td>Dow Jones</td><td>43,443.08</td><td>-0.6%</td></tr><tr><td>Russell 2000</td><td>2,345.01</td><td>-0.7%</td></tr></tbody></table></figure>



According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent121624&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) fell 0.4% to $604.65.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;eased 0.6% to $435.75.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 0.4% to $536.21.</li>



<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) dipped 1% to $232.10.</li>



<li>The&nbsp;Consumer Discretionary Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) outperformed, up by 0.2%; the&nbsp;Energy Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) lagged for the second straight session, down 1.3%.</li>
</ul>



<h3 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h3>



<ul>
<li>Amer Sports Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AS#NYSE">AS</a>) rallied 5.7% after UBS analysts raised the stock price target from $27 to $37. </li>



<li>Amentum Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMTM#NYSE">AMTM</a>) tumbled by over 11% in reaction to its earnings reports, with the company highlighting pessimistic guidance for 2025.</li>
</ul>



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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42531373/financial-stocks-near-record-year-could-trump-deregulation-fuel-bigger-gains-in-2025">Financial Stocks Near Record Year: Could Trump Deregulation Fuel Bigger Gains In 2025?</a></li>
</ul>



Photo: Shutterstock

AMTM

MRVL

Stocks Slip Ahead Of Fed Meeting, Chipmakers Suffer From China's Threat, Bitcoin Spikes Above $107,000: What's Driving Markets Tuesday?

Wall Street began Tuesday&#8217;s session on a weaker note, with major indices slipping after November's robust retail sales report reignited investor concerns that the Federal Reserve might hold back interest <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42514008/fed-poised-to-cut-interest-rates-by-0-25-this-week-heres-why-your-focus-should-shift-to-other-signals">rate cuts next year. </a>



The data, which underscored resilient consumer spending heading into the holiday season, added a fresh layer of uncertainty to the Fed's future rate path ahead of Wednesday&#8217;s highly awaited December Federal Open Market Committee meeting.



Retail sales surged 0.7% last month, outperforming consensus estimates of a 0.5% increase and marking a notable acceleration from October's <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42529956/november-retail-sales-soar-to-11-month-highs-indicate-strong-holiday-season">upwardly revised 0.5% gain. </a>



On an annual basis, sales climbed 3.8%, hitting their fastest pace since December 2023. A significant portion of the strength came from auto sales, which soared 2.6% on a monthly basis and by a robust 6.5% year-over-year, highlighting consumers' willingness to make big-ticket purchases in the fourth quarter of the year.



Spending was also robust in other categories. Nonstore retailers, driven by e-commerce activity, posted a 1.8% monthly gain, reflecting the growing dominance of online shopping as the holiday season commenced. Sporting goods, hobby, and book stores registered a 0.9% uptick, showing steady demand for discretionary items.



<h3 class="wp-block-heading">Market Reaction: Pressure Builds On Equities</h3>



The stronger-than-expected data put equity markets under pressure, as investors recalibrated their expectations for the Fed's next moves. 



The S&amp;P 500 index – as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – and Dow Jones Industrial Average both fell 0.7%, while the Nasdaq 100 – tracked by the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) – slid 0.8%, weighed down by weakness in the chip sector. 



Semiconductor stocks led the downturn amid renewed geopolitical tensions after reports surfaced that China is broadening antitrust scrutiny on U.S. chipmakers&#8217; acquisitions in recent years. Last week, Beijing opened an investigation on U.S. chip giant Nvidia Corp.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) 2019 acquisition of Mellanox Technologies.



<h3 class="wp-block-heading">Investors Face Fed Uncertainty</h3>



The robust retail sales data is the latest in a series of reports—alongside <a href="https://www.benzinga.com/news/treasuries/24/12/42460477/producer-inflation-rises-more-than-expected-to-3-in-november-cast-shadow-on-further-disinflation-progress">hotter-than-expected inflation prints</a> and upbeat <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42511277/us-services-sector-booms-at-fastest-pace-since-october-2021-business-activity-leaps-to-over-two-year-highs">December Purchasing Managers&#8217; Index surveys</a>—that challenge the case for aggressive rate cuts next year.



While a 25-basis-point reduction at the Fed's policy meeting this week is widely anticipated, the central bank's outlook for 2025 remains in question.



Fed fund futures now suggest an 80% chance the Fed will hold rates steady at its January meeting, while expectations for a March rate cut have softened, with odds slipping to 58% from 60% a day earlier.



Betting-implied odds from CFTC-regulated Kalshi continue to suggest an elevated 92% probability of four cuts next year, yet financial markets now imply only three rate cuts. 



<h3 class="wp-block-heading">Top 5 S&amp;P 500 Performers</h3>



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Company</th><th>Price ($)</th><th>% Change</th></tr></thead><tbody><tr><td>SolarEdge Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SEDG#NASDAQ">SEDG</a>)</td><td>14.35</td><td>+16.57%</td></tr><tr><td>Pfizer Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>)</td><td>26.24</td><td>+3.88%</td></tr><tr><td>ON Semiconductor Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>)</td><td>68.65</td><td>+3.26%</td></tr><tr><td>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)</td><td>475.11</td><td>+2.82%</td></tr><tr><td>Moderna Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>)</td><td>42.81</td><td>+2.37%</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">Top 5 S&amp;P 500 Losers</h3>



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Company</th><th>Price ($)</th><th>% Change</th></tr></thead><tbody><tr><td>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)</td><td>234.36</td><td>-6.29%</td></tr><tr><td>APA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>)</td><td>21.00</td><td>-4.35%</td></tr><tr><td>Constellation Energy Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>)</td><td>231.09</td><td>-3.43%</td></tr><tr><td>Humana Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUM#NYSE">HUM</a>)</td><td>252.18</td><td>-3.33%</td></tr><tr><td>NRG Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>)</td><td>91.18</td><td>-3.25%</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">Top 5 Nasdaq 100 Performers</h3>



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Company</th><th>Price ($)</th><th>% Change</th></tr></thead><tbody><tr><td>Super Micro Computer Inc. (NASDAQ: SMCI9 </td><td>34.47</td><td>+3.08%</td></tr><tr><td>Tesla Inc.</td><td>472.84</td><td>+2.33%</td></tr><tr><td>Regeneron Pharmaceuticals Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/regn#NASDAQ">REGN</a>)</td><td>740.51</td><td>+2.24%</td></tr><tr><td>ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>)</td><td>738.86</td><td>+2.22%</td></tr><tr><td>NXP Semiconductors N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NXP#NASDAQ">NXP</a>)</td><td>222.95</td><td>+2.21%</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">Top 5 Nasdaq 100 Losers</h3>



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Company</th><th>Price ($)</th><th>% Change</th></tr></thead><tbody><tr><td>Marvell Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>)</td><td>114.10</td><td>-8.52%</td></tr><tr><td>Broadcom</td><td>234.15</td><td>-6.37%</td></tr><tr><td>Nvidia</td><td>127.15</td><td>-3.65%</td></tr><tr><td>Constellation Energy</td><td>231.04</td><td>-3.45%</td></tr><tr><td>SiriusXM Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SIRI#NASDAQ">SIRI</a>)</td><td>22.02</td><td>-2.76%</td></tr></tbody></table></figure>



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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42531373/financial-stocks-near-record-year-could-trump-deregulation-fuel-bigger-gains-in-2025">Financial Stocks Near Record Year: Could Trump Deregulation Fuel Bigger Gains In 2025?</a></li>
</ul>



Image created using photos from Shutterstock.

Retail Sales

ASML

MRNA

REGN

SEDG

SIRI

Stocks Slip As Strong November Retail Sales Raise Concerns Over 2025 Fed Rate Cuts

Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) spiked to another all-time high of $108,388 at the start of the U.S. trading session but reversed its gains in line with <a href="https://www.benzinga.com/24/12/42531982/dow-dips-over-200-points-us-retail-sales-top-estimates">broader stock market losses</a>.



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Price&nbsp;&nbsp;&nbsp;</td><td>Market Cap</td><td>24-Hour Trend</td><td>7-Day Trend</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>&nbsp;$106,171</td><td>$2.1 trillion</td><td>-0.2%&nbsp;</td><td>+8.6%&nbsp;</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>)</td><td>&nbsp;$3,933</td><td>$474 billion</td><td>-0.2%&nbsp;</td><td>+6.8%&nbsp;</td></tr><tr><td>XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>)</td><td>&nbsp;$2.58</td><td>$147.6 billion</td><td>+8.8%&nbsp;</td><td>+18.1%&nbsp;</td></tr></tbody></table></figure>



Trader Notes: Technical analyst Kevin <a href="https://x.com/Kev_Capital_TA/status/1869048181159231905">warned</a> in a post on X that USDT dominance remains at a critical support level, likely impeding prices from going higher.



As long as this support level, which also marked the local crypto top in March, does not break, the analyst urges caution.



Trader Altcoin Sherpa <a href="https://x.com/AltcoinSherpa/status/1869031574425252027">highlighted</a> the weakness in altcoins, which have been struggling to keep up with Bitcoin&#8217;s recent gains. 



Bitcoin leading the price action is, according to the trader, &#8220;a good thing,&#8221; as altcoins tend to rally after the apex crypto.



Statistics: Bitcoin dominance, the market share of Bitcoin among all cryptocurrencies, has rebounded from 54.56% on Dec. 3 to 57.8% at the time of writing. 



A higher Bitcoin dominance share is indicative of either Bitcoin leading a broader market rally or Bitcoin holding up better compared to altcoins in a market downturn.



Market News: XRP has been one of the best-performing altcoins of the day, boosted by the <a href="https://www.benzinga.com/top-stories/24/12/42531943/xrp-price-soars-12-to-268-what-is-going-on">launch of its RLUSD stablecoin</a>.



Bitcoin ETFs have seen two straight weeks of net spot ETF inflows. Monday saw another $688 million in net inflows flowing <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42526592/bitcoin-ethereum-etfs-see-688m-net-inflows-analysts-target-124000">into spot ETFs</a> as market participants hope for a rally in the final two weeks of 2024.



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42490266/bitcoin-to-180000-ethereum-over-6000-solana-to-500-vanecks-2025-crypto-predictions">Bitcoin To $180,000, Ethereum Over $6,000, Solana To $500: VanEck&#8217;s 2025 Crypto Predictions</a></li>
</ul>



Image: Shutterstock

$XRP

Bitcoin Price Sets All-Time High Of $108,388, Then Dips To $106K: What Is Going On?

U.S. financial stocks are enjoying a banner year in 2024, with the sector posting the strongest yearly return in nearly three decades, fueled by the spectacular resilience of the American economy and soaring investor optimism for deregulation following Donald <a href="https://www.benzinga.com/topic/donald-trump">Trump</a><a href="https://www.benzinga.com/topic/donald-trump">'s November election victory.</a>



The iShares U.S. Financial ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) has skyrocketed 34% year-to-date, representing the fund's best annual performance since its launch in 2001.



Similarly, other financial-focused ETFs have seen strong gains. The Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) surged 31.7%, its strongest rally since 2013, while the Vanguard Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFH#NYSE">VFH</a>) climbed 32.4%.



<h3 class="wp-block-heading">Chart: A Year To Remember For Financial Stocks</h3>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="475" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16154716/image-134-1024x475.png" alt="" class="wp-image-694668" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16154716/image-134-1024x475.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16154716/image-134-300x139.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16154716/image-134-768x356.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16154716/image-134-1536x713.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16154716/image-134.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">The Financial Sector&#8217;s Biggest Winners In 2024</h3>



This year has produced standout performances from a range of individual financial stocks. Below is a list of the 10 best-performing financial equities of 2024 within the IYF ETF:



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Name</td><td>Price Chg. % (YTD)</td></tr><tr><td>Robinhood Markets, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>)</td><td>242.28%</td></tr><tr><td>Interactive Brokers Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBKR#NASDAQ">IBKR</a>)</td><td>118.22%</td></tr><tr><td>Jefferies Financial Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEF#NYSE">JEF</a>)</td><td>102.81%</td></tr><tr><td>Apollo Global Management, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APO#NYSE">APO</a>)</td><td>91.31%</td></tr><tr><td>KKR &amp; Co. Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KKR#NYSE">KKR</a>)</td><td>88.71%</td></tr><tr><td>Coinbase Global, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>)</td><td>81.72%</td></tr><tr><td>Virtu Financial, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VIRT#NASDAQ">VIRT</a>)</td><td>80.90%</td></tr><tr><td>Evercore Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EVR#NYSE">EVR</a>)</td><td>74.57%</td></tr><tr><td>SoFi Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOFI#NASDAQ">SOFI</a>)</td><td>68.99%</td></tr><tr><td>Blue Owl Capital Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OWL#NYSE">OWL</a>) </td><td>66.88%</td></tr></tbody></table><figcaption class="wp-element-caption">Data as of Dec. 16, 2024</figcaption></figure>



<h3 class="wp-block-heading">Why Financial Stocks Soared In 2024</h3>



The 2024 rally in financial stocks has been driven by a potent cocktail of strong economic growth, declining interest rates, and deregulation optimism.



The U.S. economy demonstrated remarkable resilience, with economic growth accelerating from 1.6% in the first quarter to 3% in the second quarter, and maintaining a solid 2.8% in the third quarter. 



Survey data for December further underscored this momentum, showing <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42511277/us-services-sector-booms-at-fastest-pace-since-october-2021-business-activity-leaps-to-over-two-year-highs">private-sector activity expanding at its fastest pace since April 2022</a>, with particularly strong growth in the services sector—the backbone of the financial economy.



Bank of America&#8217;s global economics team recently summarized the sentiment, stating, &#8220;Pro-growth policies like deregulation of financial services and energy, as well as lower taxes, are boosting market sentiment and asset prices.&#8221;



One of the most critical tailwinds was the de-inversion of the U.S. yield curve. The Federal Reserve's decision to ease interest rates, coupled with steady economic growth and resilient inflation, flipped the gap between short- and long-term Treasury yields. This dynamic allowed banks to borrow cheaply via short-term funding and lend at higher, long-term rates—improving net interest margins and boosting profitability.



Mortgage rates, for example, remain high because they are linked to longer-dated Treasury yields, even as interest rates have declined. 



"Economic growth data has been coming in generally better than expected lately, which has helped push Treasury yields higher, while at the same time pricing out the need for an aggressive rate-cutting campaign by the Fed," LPL Financial said in a recent note.



<h3 class="wp-block-heading">What's Next for Financial Stocks In 2025?</h3>



Heading into 2025, Wall Street sees more tailwinds for the financial sector, particularly from deregulation. "We expect a broad deregulatory push benefiting energy and financial services," Bank of America said. The firm also noted that deregulation in the banking system could ease credit constraints while stabilizing the financial system, especially given the rapid rise of private lending, which remains largely unregulated.



According to Goldman Sachs analyst Richard Ramsden, large-cap banks remain optimistic about the economy. "Healthy consumer spending trends and strong corporate balance sheets have supported a constructive outlook," Ramsden said in a recent note.



However, regional banks remain cautious about loan growth, with many pointing to a potential rebound in early-to-mid 2025. While client sentiment has improved post-election, this optimism hasn't yet translated into higher lending activity.



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Image created using artificial intelligence via Midjourney.

SOFI

VIRT

Financial Stocks Near Record Year: Could Trump Deregulation Fuel Bigger Gains In 2025?

U.S. retail sales exceeded expectations in November, highlighting consumers&#8217; continued resilience in spending as <a href="https://www.benzinga.com/news/econ-s">the holiday season began.</a>



Retail and food services sales rose to $724.6 billion in November, a 0.7% increase from October, according to seasonally adjusted advance estimates released Tuesday.



The monthly growth outpaced market expectations of a 0.5% rise, based on consensus estimates from TradingEconomics.



<h3 class="wp-block-heading">Auto Sales Rocket</h3>



On a year-over-year basis, retail sales grew by a remarkable 3.8%, the highest since December 2023, up from the upwardly revised 2.9% in October.



Excluding motor vehicles and parts, retail sales advanced by 0.2% month-over-month, holding steady from October but missing expectations of 0.4%. When stripping out gasoline, motor vehicles, and parts, sales also rose by 0.2% in November, steady from October and below the expected 0.4%. 



Within spending categories, motor vehicle and parts recorded the largest monthly gain, with sales increasing 2.6% month-over-month and 6.5% year-over-year. 



Other increases were found in nonstore retailers, up 1.8% month-over-month and sporting goods, hobby, musical instrument, and book stores, up 0.9% on the month. 



On the other hand, miscellaneous store retailers registered the steepest monthly decline, with sales contracting 3.5%, followed by food services and drinking places, which saw sales fall 0.4%.



<h3 class="wp-block-heading">Market Reactions</h3>



The U.S. dollar index (DXY) which is tracked by the&nbsp;Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) strengthened by 0.2%, following the data. 



Treasury yields ticked higher, with the 10-year benchmark up by 2 basis points to 4.42%. 



Futures on major U.S. equity indices edged lower in Tuesday&#8217;s premarket trading, with S&amp;P 500 contracts down 0.4% and the tech-heavy Nasdaq 100 slipping 0.5%.



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November Retail Sales Hit 11-Month Highs, Signal Strong Holiday Demand

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