The U.S. economy expanded at an annualized real growth rate of 3.1% in the third quarter of 2024, exceeding the prior estimate of 2.8%, according to the official final <a href="https://www.benzinga.com/news/econ-s">reading released on Thursday. </a>



This marks the fastest pace of economic expansion since the fourth quarter of 2023 and signals a stronger-than-expected rebound in activity.



The upward revision was driven primarily by robust household spending and a larger increase in exports, although these gains were partially offset by a downward revision in private inventory investment. 



Compared to the second quarter, the acceleration in GDP was attributed to stronger consumer spending, exports, and federal government expenditures.



<h3 class="wp-block-heading">Consumer Spending Remains the Growth Engine</h3>



Real consumer spending, a key driver of the economy, increased at an annualized rate of 3.7% in third quarter, up from the 3.5% growth reported in the previous estimate. This marked a notable acceleration from the 2.8% rise in the second quarter and the fastest pace of private consumption growth since the first quarter of 2023.



Household spending accounted for a significant share of the GDP boost, reflecting continued resilience despite high borrowing costs and lingering inflationary pressures.



Corporate profits contracted by 0.4% during the third quarter, a revision from the flat growth reported earlier and a sharp reversal from the 3.5% increase seen in the second quarter. 



Inflation pressures, as measured by the GDP price index, rose 1.9%, consistent with earlier estimates but down from 2.5% in the second quarter. 



The Core Personal Consumption Expenditures Price Index, a preferred measure of inflation for the Federal Reserve, increased at a 2.2% annualized rate, slightly above the 2.1% initially estimated but easing from 2.8% in the second quarter. 



<h3 class="wp-block-heading">Labor Market Shows Continued Strength</h3>



In a separate report on Thursday, labor market data revealed a decline in unemployment claims, reinforcing the narrative of a strong labor market.



Initial jobless claims fell to 220,000 for the week ending Dec. 14, down from 242,000 the previous week and below expectations of 230,000. Continuing claims also edged lower, dropping from a revised 1.879 million to 1.874 million, defying projections of an increase to 1.89 million.



These figures indicate that the brief spike in claims observed in early December has not persisted, pointing to robust momentum in employment as 2024 draws to a close.



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



Risk sentiment rebounded during the premarket trading on Thursday, following the sharp selloff witnessed a day earlier amid a more hawkish than expected Federal Reserve meeting. 



Futures on major U.S. indices were in the green, with contracts on the S&amp;P 500 index rising by 0.8%. Similar gains were witnessed by the Nasdaq 100 and the Dow. On Wednesday the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) closed 3% lower, marking its worst session since September 2022.



The U.S. dollar index – Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – remained broadly steady for the day.



Meanwhile, Treasury yields continued their relentless climb, with yields on the 10-year benchmark surpassing 4.53%, hitting the highest levels since early May 2024. 



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/24/12/42571835/trumps-rejection-of-bipartisan-deal-fuels-government-shutdown-fears-how-markets-historically-react-to-political-turmoil">Trump&#8217;s Rejection Of Bipartisan Deal Fuels Government Shutdown Fears: How Markets Historically React To Political Turmoil</a></li>
</ul>



Photo: Shutterstock

Macro Economic Events

Broad U.S. Equity ETFs

Econ #s

Economics

Federal Reserve

ETFs

US GDP Revised To 3.1%, Jobless Claims Dip More Than Expected, Treasury Yields Hit 7-Month High

Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) has rebounded to $102,250 after taking a nosedive on Thursday following <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42563299/feds-powell-shocks-markets-its-a-new-phase-were-significantly-closer-to-neutral">the FOMC meeting</a>.



What Happened: Bitcoin cratered from above $105,000 before Thursday&#8217;s trading session to a low of $98,839 during U.S. night time hours. 



It has since rebounded and is down 2.5% over the past 24 hours.



Crypto chart analyst Ali Martinez explained in an X <a href="https://x.com/ali_charts/status/1869520970832138261">post</a> following the Fed meeting that the reaction wasn't due to the 25-bps rate cut, which was largely expected, but rather concerns over persistent inflation and the possibility of prolonged elevated interest rates.



Despite the negative sentiment, Martinez advised traders to &#8220;keep calm, don't panic sell,&#8221; emphasizing that markets dislike uncertainty but typically stabilize once clarity emerges.



Coinglass data reveals that total liquidations in the past 24 hours amounted to $788.5 million, with over 269,623 traders liquidated.



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42554929/donald-trump-reportedly-discussed-bitcoin-reserve-in-meeting-with-cryptocom-ceo-kris-marszalek">Donald Trump Reportedly Discussed Bitcoin Reserve In Meeting With Crypto․com CEO Kris Marszalek</a>



Why It Matters: Fed Chair Jerome Powell added to market jitters by calling the decision a "closer call," hinting at divisions within the Federal Reserve. 



This boosted the U.S. Dollar to its highest level since 2022, putting pressure on risk assets like Bitcoin, which experienced a sharp drop.



In a separate tweet, Martinez highlighted funding rates suggesting leveraged positions:



<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">Funding rates look like we should go 100x leverage! &#x1f605; <a href="https://t.co/dLyDhlHI37">pic.twitter.com/dLyDhlHI37</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1869699700162482186?ref_src=twsrc%5Etfw">December 19, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



He also <a href="https://x.com/ali_charts/status/1869651554099499318">noted</a>, &#8220;Binance traders were right; we should have shorted Bitcoin.&#8221; 



Martinez previously noted that 62.6% of Binance traders with open BTC futures positions were going short, aligning with the bearish market sentiment.



Key takeaways from the Fed meeting included the expectation of fewer rate cuts in 2025 (down from three to two), higher inflation forecasts for 2025 (2.5%) and 2026 (2.1%), exceeding the Fed&#8217;s 2% target, and an acknowledgement that inflation metrics like core CPI, core PCE and PPI are ticking up.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42560698/microstrategys-aggressive-bitcoin-strategy-raises-eyebrows-in-crypto-community">MicroStrategy&#8217;s Aggressive Bitcoin Strategy Raises Eyebrows In Crypto Community</a></li>
</ul>



Image created using artificial intelligence with Midjourney.

Cryptocurrency

News

$BTC

Bitcoin Price Rebounds Above $102,000 After Fed Meeting Calamity: Why Is BTC Going Up?

President-elect Donald Trump unexpectedly dismissed a <a href="https://www.benzinga.com/24/12/42544562/congressional-leaders-reach-bipartisan-deal-to-avert-government-shutdown">bipartisan proposal</a> on Wednesday, increasing the possibility of a U.S. government shutdown ahead of Christmas.



However, according to research firm Edward Jones, markets tend to look through the noise, with U.S. stocks staying positive half the times during the past 20 government shutdowns since 1976.



What Happened: &#8220;The uncertainty that a potential government shutdown introduces can lead to a short-term uptick in volatility. But as with most political events, government shutdowns have historically had little lasting impact on equity performance,&#8221; said Angelo Kourkafas, an investment strategist at Edward Jones.



Recent years have witnessed recurring government shutdowns, though they have been relatively short-lived. Since 1976, the U.S. has experienced 20 such shutdowns lasting at least a day. The most prolonged shutdown, occurring in December 2018, lasted for 35 days, setting a historical record.



The following table shows how the markets have reacted to the previous shutdowns. According to this data, the stocks were positive half the time during the government closures and were higher in most cases three and six months later.



<h3 class="wp-block-heading">Market Performance Over Last 20 Shutdowns Since 1976</h3>



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Start Date</td><td>Duration in days</td><td>During Shutdown</td><td>Three Months Later</td><td>Six Months Later</td></tr><tr><td>9/30/1976</td><td>11</td><td>-3%</td><td>2%</td><td>-4%</td></tr><tr><td>9/30/1977</td><td>13</td><td>-3%</td><td>-5%</td><td>-3%</td></tr><tr><td>10/31/1977</td><td>9</td><td>1%</td><td>-2%</td><td>4%</td></tr><tr><td>11/30/1977</td><td>9</td><td>-1%</td><td>-5%</td><td>7%</td></tr><tr><td>9/30/1978</td><td>18</td><td>-2%</td><td>-2%</td><td>0%</td></tr><tr><td>9/30/1979</td><td>12</td><td>-4%</td><td>5%</td><td>-1%</td></tr><tr><td>11/20/1981</td><td>3</td><td>0%</td><td>-8%</td><td>-6%</td></tr><tr><td>9/30/1982</td><td>2</td><td>1%</td><td>15%</td><td>25%</td></tr><tr><td>12/17/1982</td><td>4</td><td>1%</td><td>11%</td><td>25%</td></tr><tr><td>11/10/1983</td><td>4</td><td>1%</td><td>-6%</td><td>-5%</td></tr><tr><td>9/30/1984</td><td>3</td><td>-2%</td><td>1%</td><td>9%</td></tr><tr><td>10/3/1984</td><td>2</td><td>0%</td><td>0%</td><td>10%</td></tr><tr><td>10/16/1986</td><td>2</td><td>0%</td><td>11%</td><td>20%</td></tr><tr><td>12/18/1987</td><td>2</td><td>0%</td><td>9%</td><td>8%</td></tr><tr><td>10/5/1990</td><td>4</td><td>-2%</td><td>-1%</td><td>19%</td></tr><tr><td>11/13/1995</td><td>6</td><td>1%</td><td>8%</td><td>11%</td></tr><tr><td>12/15/1995</td><td>22</td><td>0%</td><td>6%</td><td>7%</td></tr><tr><td>9/30/2013</td><td>17</td><td>3%</td><td>7%</td><td>8%</td></tr><tr><td>1/19/2018</td><td>3</td><td>1%</td><td>-5%</td><td>0%</td></tr><tr><td>12/21/2018</td><td>35</td><td>10%</td><td>11%</td><td>14%</td></tr></tbody></table><figcaption class="wp-element-caption">Source: Edward Jones Research</figcaption></figure>



&#8220;More broadly, market performance tends to be driven more by the outlook for economic growth, earnings and interest rather than the political landscape,&#8221; added Kourkafas.



See Also: <a href="https://www.benzinga.com/24/12/42550804/bofa-says-cash-holdings-of-asset-managers-in-december-2024-has-been-the-lowest-since-2011-and-2002-triggering-a-sell-signal">Cash Holdings Of Asset Managers Lowest In 13 Years, Says BofA, Flagging &#8216;Sell&#8217; Signal Amid &#8216;Trump 2.0 Optimism&#8217;</a>



Why It Matters: The impact of a shutdown could be different on various kinds of government functions. It differs from a debt-limit default in that it doesn&#8217;t hinder the government&#8217;s capacity to meet its debt obligations to bondholders, meaning it doesn&#8217;t directly influence borrowing costs or credit ratings.



While Treasury interest payments and Social Security benefits continue as usual, millions of federal workers go without pay during the shutdown. Although this situation affects households, furloughed employees will receive backpay once Congress restores funding.



What&#8217;s Happening With The Bill? After scrapping the bipartisan proposal, Trump urged House Speaker Mike Johnson and Republican lawmakers to renegotiate, just days before federal funding was set to expire.



Speaker Johnson has to now come up with an alternative plan to prevent the government from closing ahead of Friday's deadline.



In a statement, Trump and Vice President-elect JD Vance urged Republicans to "get smart and tough."



Trump's proposal, which was seen as highly ambitious, called for continued government funding alongside a contentious provision to raise the national debt ceiling—something that typically faces strong opposition from his own party. "Anything else is a betrayal of our country," they declared.



Department of Government Efficiency co-lead Elon Musk, on the other hand, also supported the Republicans in turning down the bill.



<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 voice of the people was heard. This was a good day for America. <a href="https://t.co/r8K4AcbDYf">https://t.co/r8K4AcbDYf</a>&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1869521075761234338?ref_src=twsrc%5Etfw">December 18, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/24/12/42569883/quantum-computing-rigetti-d-wave-skyrocket-up-to-300-in-5-sessions-after-google-unveils-willow-chip-but-analysts-urge-caution-not-every-tiktok-guitarist-is-the-next-taylor-swift">Quantum Computing, Rigetti, D-Wave Skyrocket Up To 300% In 5 Sessions After Google Unveils Willow Chip, But Analysts Urge Caution: &#8216;Not Every TikTok Guitarist Is The Next Taylor Swift&#8217;</a></li>
</ul>



Photo courtesy: Shutterstock

Government

Politics

Markets

Trump's Rejection Of Bipartisan Deal Fuels Government Shutdown Fears: How Markets Historically React To Political Turmoil

U.S. stock futures climbed on Thursday in premarket hours after the indices declined in the previous session following a <a href="https://www.benzinga.com/news/econ-s/24/12/42561549/fed-slashes-interest-rates-by-0-25-as-predicted-december-dot-plot-flags-only-2-potential-cuts-in-2025">hawkish cut</a> from the Federal Reserve. The futures of all four major indices were trading higher.



The 10-year and two-year Treasury notes yielded 4.54% and 4.32%, respectively.



On Wednesday, the Federal Reserve did reduce interest rates by 0.25% to a range of 4.25%-4.5%, as expected. However, the revised economic projections indicate only two possible rate cuts in 2025—down from the four predicted in September and fewer than the three that markets had anticipated before the meeting.



The probability of having no change in the interest rates for the upcoming Jan. 31, 2025 decision was at 91.4%, <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">according</a> to CME Group&#8217;s FedWatch tool.



GDP revisions slated to be released later today will reveal whether the economy maintained the previously estimated 2.8% growth rate for the third quarter.



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.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>0.28%</td></tr><tr><td>S&amp;P 500</td><td>0.40%</td></tr><tr><td>Dow Jones</td><td>0.37%</td></tr><tr><td>Russell 2000</td><td>0.39%</td></tr></tbody></table></figure>



In premarket trading on Thursday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was up 0.52% to $589.35 and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.48% to $518.94, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.



Cues From The Last Session



U.S. stocks closed lower on Wednesday, with the <a href="https://www.benzinga.com/news/earnings/24/12/42569953/dow-dips-over-1100-points-falling-for-10th-session-as-powell-adopts-hawkish-stance-greed-index-moves-to-fear-zone">Dow Jones dropping for the tenth consecutive session</a>, falling by more than 1,100 points.



On the economic front, the U.S. posted a current account deficit of $310.9 billion in the third quarter, up from a revised deficit of $275.0 billion in the previous quarter and exceeding market expectations of a $284 billion gap. Meanwhile, U.S. housing starts declined by 1.8%, reaching an annualized rate of 1.289 million units in November, down from 1.312 million in October.



All sectors of the S&amp;P 500 ended the day in the red, with consumer discretionary, real estate, and communication services stocks seeing the largest losses.



&#8220;It&#8217;s been a very mild year with just 17 declines of 1% or more,&#8221; said Charlie Bilello, chief market strategist at Creative Planning Investor.



<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 S&amp;P 500 fell 2.95% today, the worst day for stocks since August 5 (Nikkei black Monday crash). Overall, it&#39;s been a very mild year with just 17 declines of 1% or more (vs. 29 in the average year). History of large down days since 1928&#8230; <a href="https://twitter.com/search?q=%24SPX&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SPX</a><a href="https://t.co/l5IYmkf6Ih">https://t.co/l5IYmkf6Ih</a> <a href="https://t.co/XSAGBsgiIY">pic.twitter.com/XSAGBsgiIY</a>&mdash; Charlie Bilello (@charliebilello) <a href="https://twitter.com/charliebilello/status/1869527952851116382?ref_src=twsrc%5Etfw">December 18, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-3.56%</td><td>19,392.69</td></tr><tr><td>S&amp;P 500</td><td>-2.95%</td><td>5,872.16</td></tr><tr><td>Dow Jones</td><td>-2.58%</td><td>42,326.87</td></tr><tr><td>Russell 2000</td><td>-4.39%</td><td>2,231.51</td></tr></tbody></table></figure>



Insights From Analysts



Talking about her 2025 projections after the Fed&#8217;s rate cut, Julia Khandoshko, the CEO of Mind Money in a conversation with <a href="https://www.benzinga.com">Benzinga</a> said, &#8220;In 2025, investors should focus on three key strategies: monitoring the impact of political and economic changes on markets, investing in promising sectors such as AI and biotechnology without excessive dependence on technology, and actively diversifying the portfolio with traditional industries and new opportunities in emerging markets.&#8221;



Chris Zaccarelli, chief investment officer for Northlight Asset Management, said that markets are forward-looking and reacted to the Fed&#8217;s 2025 projection and not the quarter-point cut that it delivered.



&#8220;Santa came early and dropped a 25-bps rate cut in the market&#8217;s stocking but accompanied it with a note saying that there would be coal next year,&#8221; Zaccarelli said.



Jeremy Siegel, professor emeritus at the University of Pennsylvania's Wharton School, described the stock market's recent downturn as a "healthy" reaction to the Federal Reserve's cautious approach to future interest rate cuts.



&#8220;The market was overly optimistic…so I am not surprised at the sell-off,&#8221; he said.



He suggested that the Fed might reduce rates only once or twice next year, with the possibility of no cuts at all due to inflation concerns. Siegel also mentioned potential tariffs from President-elect Donald Trump could impact inflation, though he believes the actual tariffs may not be as significant as feared.



Bill Adams, chief economist for Comerica Bank, said the Fed is reacting to the incoming Trump administration&#8217;s policies, which it sees as most likely to boost growth and inflation, as well as tighten the job market.



Trump does not have much control over the pace of rate cuts in the near term, Adams said, but &#8220;that could change in 2026 if President-elect Trump gets the Senate to confirm a new Fed chair who is more sympathetic to his policy goals.&#8221;



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 in the rest of the week that will help investors determine the future course of action.



<ul>
<li>On Thursday, the data for initial jobless claims till Dec. 14, GDP&#8217;s second revision for the third quarter, and Philadelphia Fed manufacturing survey data for December will be released at 8:30 a.m., ET.</li>



<li>Existing home sales data and U.S. leading economic indicators for November will be announced at 10:00 a.m., ET.</li>



<li>On Friday, personal income and spending data along with core and headline PCE index data for November will be released at 8:30 a.m., ET.</li>



<li>Consumer sentiment data for December will be released at 10:00 a.m., ET.</li>



<li>Carnival Corporation and Winnebago Industries will report earnings.</li>
</ul>



Stocks In Focus:



<ul>
<li>Accenture Plc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACN#NYSE">ACN</a>) was up 3.56% ahead of its Q1 earnings call scheduled before the opening bell. Wall Street expects quarterly earnings at $3.40 per share on revenue of $17.12 billion.</li>



<li>Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) was down 15.52% after it posted better-than-expected earnings but sales missed expectations in the first quarter.</li>



<li>Nike Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) was just up 0.4% in premarket a analysts expect it to post quarterly earnings at 64 cents per share on revenue of $12.13 billion after the closing bell.</li>



<li>Lennar Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LEN#NYSE">LEN</a>) was 8.85% lower in premarket trading after it reported worse-than-expected financial results for the fourth quarter.</li>



<li>Sangamo Therapeutics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SGMO#NASDAQ">SGMO</a>) was up 22.55% after it inked an agreement with Astellas Pharma allowing the latter to leverage Sangamo&#8217;s novel proprietary neurotropic adeno-associated virus capsid. Sangamo will receive a $20 million upfront license fee and is eligible to earn up to $1.3 billion in additional licensed target fees.</li>



<li>KULR Technology Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KULR#NYSE">KULR</a>) was up 27.88% after it announced plans to launch the KULR ONE Space battery via launch integrator Exolaunch on a SpaceX rideshare mission scheduled for 2026.</li>



<li>Mesoblast Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MESO#NASDAQ">MESO</a>) rose 42.61% in pre-market trading after Mesoblast's RYONCIL became the first FDA-approved mesenchymal stromal cell therapy in the U.S.</li>
</ul>



Commodities, Bonds And Global Equity Markets:



Crude oil futures were lower in the early New York session by 0.94% to hover around $69.92 per barrel.



The gold spot index fell by 0.82% to $2,631.59 per ounce. The Dollar Index was down 0.12% to 107.893 level.



Asian markets declined on Thursday, as Hong Kong&#8217;s Hang Seng, South Korea&#8217;s Kospi, Japan&#8217;s Nikkei 225, India&#8217;s S&amp;P BSE Sensex, and Australia&#8217;s ASX 200 index fell, while China&#8217;s CSI 300 index ended marginally higher.



Most European markets were also trading lower.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/24/12/42571821/why-sangamo-therapeutics-shares-are-trading-higher-by-around-20-here-are-20-stocks-moving-premarket">Why Sangamo Therapeutics Shares Are Trading Higher By Around 20%; Here Are 20 Stocks Moving Premarket</a></li>
</ul>



Photo courtesy: Wikimedia

Equities

Market Summary

Futures

Pre-Market Outlook

Movers

Trading Ideas

KULR

MESO

SGMO

US Stocks Likely To Open Higher After Plunging On Powell's Hawkish Comments: Analyst Calls It A 'Healthy' Reaction From An 'Overly Optimistic' Market

A publicly traded cryptocurrency company&#8217;s shares have nearly tripled in a month following reports of a potential acquisition by President-elect Donald Trump&#8217;s Trump Media &amp; Technology Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DJT#NASDAQ">DJT</a>).&nbsp;



What happened: Bakkt Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BKKT#NYSE">BKKT</a>) closed at an 11-month high of $32.44 earlier on Monday, marking a staggering 186% jump in a month, between Nov. 15 to Dec. 16. The rally pushed the company's valuation to $443 million, representing an addition of $288 million.



The positive momentum was imparted by reports that Trump Media &amp; Technology Group was in <a href="https://www.benzinga.com/general/social-media/24/11/42048594/trump-digs-deeper-into-c[%E2%80%A6]oar-on-reported-interest-from-president-elects-media-company">advanced talks</a> to acquire the company. The official confirmation has yet to be made as of this writing.



See Also:<a href="https://www.benzinga.com/24/12/42519107/if-you-invested-1000-in-bitcoin-when-the-first-bitcoin-etf-was-filed-heres-how-much-youd-have-today"> </a><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42560698/microstrategys-aggressive-bitcoin-strategy-raises-eyebrows-in-crypto-community">MicroStrategy&#8217;s Aggressive Bitcoin Strategy Raises Eyebrows In Crypto Community</a>



Bakkt, based in Alpharetta, Georgia, provides services for cryptocurrency trading, storage, and loyalty point redemption.



Bakkt was founded and is 55% owned by Intercontinental Exchange, which also owns the New York Stock Exchange.



Why It Matters: The market has<a href="https://www.benzinga.com/trading-ideas/long-ideas/24/12/42552111/trump-era-will-unlock-crypto-market-with-regulatory-clarity-says-analyst"> reacted positively</a> to Trump&#8217;s triumph, with the price of the top cryptocurrency Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) surpassing $100,000 and other cryptocurrency-based equities like MicroStrategy and MARA Holdings raking in big gains.



The optimism stemmed from Trump&#8217;s vigorous pro-cryptocurrency campaign, which saw bold promises like <a href="https://www.benzinga.com/markets/cryptocurrency/24/07/40001426/trump-aims-to-make-us-crypto-capital-of-the-planet-well-get-it-done">establishing a national Bitcoin stockpile</a>.&nbsp;



Interestingly, Bakkt&#8217;s stock has returned more than Bitcoin and its <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42560698/microstrategys-aggressive-bitcoin-strategy-raises-eyebrows-in-crypto-community">de facto proxy stock, MicroStrategy</a>, which grew by only 16% and 24%, respectively, in the said time.



However, one could argue that low-priced stocks have a higher potential for large percentage moves.



Price Action: Meanwhile Bakkt shares have given up early week's gains, crashing 13.2% to $26.55 during Wednesday's regular session, according to <a href="https://pro.benzinga.com/dashboard?_gl=1&#x2A;380nj0&#x2A;_ga&#x2A;MTEyOTAyOTcxMy4xNzEzMzY0NTYy&#x2A;_ga_V7ZK73W7N0&#x2A;MTcxNDk4MzIzMi42LjEuMTcxNDk4OTE0Ni4wLjAuMA..">data from Benzinga Pro</a>. 



Bakkt has a <a href="https://www.benzinga.com/quote/BKKT/analyst-ratings">consensus price targe</a>t of $2.51, according to four analyst ratings. The high of $7 was issued by Jefferies in Jan. 2022 while the low of $0.3 was issued by Citigroup in March.



The DJT stock likewise tanked 7% to $35.32. The decline had more to do with the <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42563299/feds-powell-shocks-markets-its-a-new-phase-were-significantly-closer-to-neutral">Federal Reserve's hawkish outlook</a> which roiled the broader market.



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42545656/bitcoin-is-no-manhattan-real-estate-peter-schiff-challenges-microstrategys-micheal-saylor-btc-doesnt-generate-any-income">Bitcoin Is No Manhattan Real Estate, Peter Schiff Challenges MicroStrategy&#8217;s Michael Saylor: &#8216;BTC Doesn&#8217;t Generate Any Income&#8217;</a></li>
</ul>



Photo courtesy: Shutterstock

BKKT

Trump's DJT Connection Drives This Lesser-Known Crypto Stock's Nearly 3X Surge In A Month

On Wednesday, December 18th, U.S. markets closed sharply lower, with the Dow dropping over 1,100 points—its steepest decline since August and longest losing streak since 1974. The Fed cut rates by 25 basis points as expected but signaled fewer cuts in 2025. Markets reacted sharply to the less dovish tone despite assurances of economic strength and progress on inflation.



Fed Chair Powell adopted a hawkish tone as the Fed cut rates by 0.25% but reduced 2025 rate cut projections to two, down from four in September and below market expectations.



The U.S. current account deficit widened to $310.9 billion in Q3, exceeding the estimated $284 billion. Housing starts fell 1.8% in November to an annualized 1.289 million units from 1.312 million in October.



S&amp;P 500 ended in the red, with consumer discretionary, real estate, and communication services stocks suffering the largest declines.



The Dow Jones Industrial Average was down 2.58% and closed at 42,326.87, the S&amp;P 500 closed lower by 2.95% at 5,872.16, and the Nasdaq Composite slipped 3.56% to finish at 19,392.69.



Asia Markets Today



<ul>
<li>On Thursday, Japan&#8217;s Nikkei 225 declined 0.80% and ended the session at 38,808.50, led by losses in the Communication, Steel, and Transportation Equipment sectors.</li>



<li>Australia&#8217;s S&amp;P/ASX 200 fell 1.70% and ended the day at 8,168.20, led by losses in the Gold, IT, and Materials sectors.</li>



<li>India&#8217;s Nifty 50 slid 0.98% to 23,961.95, and Nifty 500 was down 0.77%, closing at 22,757.65, led by losses in the Banking, Consumer Durables, and Capital Goods sectors.</li>



<li>China&#8217;s Shanghai Composite fell 0.36% to close at 3,370.03, while the Shenzhen CSI 300 gained 0.09%, finishing the day at 3,945.46.</li>



<li>Hong Kong&#8217;s Hang Seng was down 0.56% and closed the session at 19,752.51.</li>
</ul>



Eurozone at 05:30 AM ET



<ul>
<li>The European STOXX 50 index was down 1.60%.</li>



<li>Germany&#8217;s DAX slid 1.12%.</li>



<li>France&#8217;s CAC fell 1.49%.</li>



<li>U.K.&#8217;s FTSE 100 index traded lower by 1.27%.</li>



<li>European stocks fell as the Fed signaled slower rate cuts in 2025. Rate-sensitive tech stocks led losses, while bond yields spiked and commodities declined.</li>
</ul>



Commodities at 05:30 AM ET



<ul>
<li>Crude Oil WTI was trading lower by 0.71% at $70.08/bbl, and Brent was up 0.07% at $73.44/bbl.</li>



<li>Natural Gas rose 2/16% to $3.447.</li>



<li>Gold was trading lower by 0.78% at $2,632.79, Silver was down 2.23% to $30.027, and Copper fell 1.62% to $4.0903.</li>
</ul>



U.S. Futures at 05:30 AM ET



Dow futures were up 0.40%, S&amp;P 500 futures rose 0.48% and Nasdaq 100 futures gained 0.47%.



Forex at 05:30 AM ET



<ul>
<li>The U.S. dollar index was down 0.13% to 107.89, the USD/JPY rose 1.35% to 156.89, and the USD/AUD slid 0.42% to 1.6012.</li>



<li>The U.S. dollar surged to a two-year high after the Fed signaled fewer rate cuts in 2025, pressuring global currencies. However, it slipped Thursday amid thin holiday trading, with the euro and Canadian dollar, and won fluctuating sharply.</li>
</ul>



Photo via Shutterstock

Asia

Emerging Markets

Eurozone

Commodities

Forex

ADIV

AGOV

ASHR

BBEU

BOIL

CQQQ

EEMA

FLAX

IEMG

IEUR

KDIV

SPEM

USDU

Global Markets Slide On Fed's Hawkish Rate Policy; U.S. Dollar Eases Slightly After Hitting Two-Year High - Global Markets Today While US Slept

The CNN Money Fear and Greed index showed a sharp decline in the overall market sentiment, while the index moved to the &#8220;Fear&#8221; zone on Wednesday.



U.S. stocks settled lower on Wednesday, with the Dow Jones index falling for the 10th session in a row, dipping more than 1,100 points during the session.



Federal Reserve Chair Jerome Powell adopted a hawkish stance during his Wednesday press conference after the December Fed meeting. Although the Federal Reserve lowered interest rates by 0.25% to a range of 4.25%-4.5%, as widely anticipated, the updated economic projections suggest just two potential rate cuts in 2025 — down from four projected in September and fewer than the three anticipated by markets before the meeting.



On the economic data front, the U.S. recorded a current account deficit of $310.9 billion in the third quarter compared to the revised gap of $275.0 billion in the previous period, versus market estimates of a $284 billion gap. U.S. housing starts fell 1.8% to an annualized rate of 1.289 million units in November from 1.312 million in October.



General Mills, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>) shares fell around 3% on Wednesday following the release of second-quarter results. Shares of Worthington Enterprises, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOR#NYSE">WOR</a>) rose around 10% during Wednesday&#8217;s session as the company posted better-than-expected results for its second quarter.



All sectors on the S&amp;P 500 closed on a negative note, with consumer discretionary, real estate, and communication services stocks recording the biggest losses on Wednesday.



The Dow Jones closed lower by around 1,123 points to 42,326.87 on Wednesday. The S&amp;P 500 fell 2.95% to 5,872.16, while the Nasdaq Composite declined 3.56% at 19,392.69 during Wednesday's session.



Investors are awaiting earnings results from Accenture Plc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACN#NYSE">ACN</a>), Nike Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>), and FedEx Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) today.



What is CNN Business Fear &amp; Greed Index?



At a current reading of 33.9, the index moved to the &#8220;Fear&#8221; zone on Wednesday, versus a prior reading of 50.7.



The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/24/12/42553288/top-3-tech-and-telecom-stocks-that-may-crash-this-month">Top 3 Tech And Telecom Stocks That May Crash This Month</a></li>
</ul>



Photo courtesy: Shutterstock

Earnings

Dow Dips Over 1,100 Points, Falling For 10th Session As Powell Adopts Hawkish Stance: Greed Index Moves To 'Fear' Zone

Quantum computing stocks have catapulted this year, especially after Dec. 9, when Alphabet Inc.&#8217;s (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>) Google announced its <a href="https://www.benzinga.com/24/12/42447332/alphabets-quantum-willow-chip-wows-analyst-google-at-the-leading-edge-of-technology-innovation">latest quantum chip, Willow</a>. However, analysts have a negative consensus rating for these stocks.



What Happened: Quantum Computing Inc. stock surged by 52.95% on Thursday and 2,785.39% over the year but Citron Research has called this move the &#8220;most ridiculous&#8221; citing its spending on research and development.



Stocks of other companies, including Rigetti Computing Inc., and D-Wave Quantum Inc. have soared enormously, whereas other quantum computing players like IONQ Inc. and International Business Machines. have seen modest growth.



<figure class="wp-block-table"><table><tbody><tr><td>Stock</td><td>5-Day Change</td><td>1-Month Change</td></tr><tr><td>Quantum Computing Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QUBT#NASDAQ">QUBT</a>)</td><td>296.86%</td><td>911.02%</td></tr><tr><td>Rigetti Computing Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RGTI#NASDAQ">RGTI</a>)</td><td>60.87%</td><td>716.03%</td></tr><tr><td>D-Wave Quantum Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QBTS#NYSE">QBTS</a>)</td><td>108.37%</td><td>501.34%</td></tr><tr><td>IONQ Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IONQ#NYSE">IONQ</a>)</td><td>27.99%</td><td>34.46%</td></tr><tr><td>IBM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>)</td><td>-5.23%</td><td>4.72%</td></tr></tbody></table></figure>



<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 move in these quantum computing stocks has gotten out of hand. Rigetti <a href="https://twitter.com/search?q=%24RGTI&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$RGTI</a> and Quantum <a href="https://twitter.com/search?q=%24QUBT&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$QUBT</a> are now up more than 1,000% so far in Q4. <a href="https://t.co/UY0MmB8yN0">pic.twitter.com/UY0MmB8yN0</a>&mdash; Bespoke (@bespokeinvest) <a href="https://twitter.com/bespokeinvest/status/1868760473094832549?ref_src=twsrc%5Etfw">December 16, 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/24/12/42447332/alphabets-quantum-willow-chip-wows-analyst-google-at-the-leading-edge-of-technology-innovation">Alphabet&#8217;s Quantum Willow Chip Wows Analyst: Google At The &#8216;Leading Edge Of Technology Innovation&#8217;</a>



Why It Matters: The funds allocated to research and development as a part of operating expenses were down to $2.24 million in the third quarter of the current fiscal for Quantum Computing. This compares to $2.32 million during the same period last year.



According to Citron, this is a &#8220;striking mismatch for a company claiming to offer integrated high-performance quantum systems.&#8221;



<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">Small-cap quantum stocks are in a bubble, but <a href="https://twitter.com/search?q=%24QUBT&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$QUBT</a> stands out as the most ridiculous. The numbers tell the story. R&amp;D spending is THE critical indicator in this space: last quarter, <a href="https://twitter.com/search?q=%24IONQ&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$IONQ</a> allocated $33M and <a href="https://twitter.com/search?q=%24RGTI&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$RGTI</a> $12M, modest figures next to tech giants like Google. Yet <a href="https://twitter.com/search?q=%24QUBT&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$QUBT</a>…&mdash; Citron Research (@CitronResearch) <a href="https://twitter.com/CitronResearch/status/1869400459267436877?ref_src=twsrc%5Etfw">December 18, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The company was recently awarded a $26,000 contract from NASA. According to the CEO and CIO of the Arora Report, Nigam Arora, &#8220;The contract is very small and does not justify the run-up.&#8221;



<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">As many of you know, I am a nuclear physicist and engineer. Quantum computing stock <a href="https://twitter.com/search?q=%24QUBT&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$QUBT</a> is being pumped up like crazy on the news of a NASA contract. The contract is very small and does not justify the run up. I have worked with NASA. So, who is buying <a href="https://twitter.com/search?q=%24QUBT&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$QUBT</a>. It is the momo…&mdash; Nigam Arora (@TheAroraReport) <a href="https://twitter.com/TheAroraReport/status/1869084928518103125?ref_src=twsrc%5Etfw">December 17, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Quantum computers, using qubits, promise to revolutionize computing by performing complex calculations exponentially faster than traditional computers.



Google&#8217;s recent breakthrough with Willow demonstrates the potential of quantum memory as it performed a standard benchmark computation in under five minutes which currently takes a supercomputer 10 septillion years — a number that vastly exceeds the age of the Universe.



However, high error rates remain a significant challenge, hindering commercial viability and uncertain timelines for widespread adoption.



&#8220;Buying $RGTI based on Google's quantum success is as misguided as believing every TikTok guitarist is the next Taylor Swift,&#8221; said Citron 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">Buying <a href="https://twitter.com/search?q=%24RGTI&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$RGTI</a> based on Google's quantum success is as misguided as believing every TikTok guitarist is the next Taylor Swift. When the hype fades, investors will recall <a href="https://twitter.com/search?q=%24RGTI&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$RGTI</a> sold equity at $2 just two weeks ago, with more dilution to come rather than true quantum competitiveness.…&mdash; Citron Research (@CitronResearch) <a href="https://twitter.com/CitronResearch/status/1866859551166959963?ref_src=twsrc%5Etfw">December 11, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



What Are Other Analysts Saying: According to the <a href="https://www.benzinga.com/quote/QUBT/analyst-ratings">analysts tracked by Benzinga</a>, most of these quantum computing companies face a potential downside in the future, with the exception of IBM.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Stocks</td><td>Last Three PT&#8217;s Average</td><td>Up/Downside Potential</td></tr><tr><td>Rigetti Computing</td><td>$3.33 </td><td>-67.09%</td></tr><tr><td>Quantum Computing</td><td>$8.63 </td><td>-62.77%</td></tr><tr><td>D-Wave Quantum</td><td>$4.58 </td><td>-48.33%</td></tr><tr><td>IONQ</td><td>$20.67 </td><td>-46.04%</td></tr><tr><td>IBM</td><td>$226.67 </td><td>2.66%</td></tr></tbody></table></figure>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/24/12/42550804/bofa-says-cash-holdings-of-asset-managers-in-december-2024-has-been-the-lowest-since-2011-and-2002-triggering-a-sell-signal">Cash Holdings Of Asset Managers Lowest In 13 Years, Says BofA, Flagging &#8216;Sell&#8217; Signal Amid &#8216;Trump 2.0 Optimism&#8217;</a></li>
</ul>



Photo courtesy: Shutterstock

Analyst Color

Price Target

Small Cap

Analyst Ratings

Tech

GOOG

GOOGL

IONQ

QBTS

QUBT

RGTI

Quantum Computing, Rigetti, D-Wave Skyrocket Up To 300% In 5 Sessions After Google Unveils Willow Chip, But Analysts Urge Caution: 'Not Every TikTok Guitarist Is The Next Taylor Swift'

Leading cryptocurrencies tanked Wednesday after the Federal Reserve's <a href="https://www.youtube.com/watch?v=ReqGMYHAbP0">hawkish outlook</a> and the central bank&#8217;s statement that it has no interest in owning Bitcoin.



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:45 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>-4.94%</td><td>$100,644.84</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>-5.81%</td><td>$3,648.03</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>-8.26%</td><td>$0.3603</td></tr></tbody></table></figure>



What Happened: Bitcoin plunged sharply through the day but managed to stay above the psychologically crucial $100,000 mark.



Ethereum's descent was steeper, as the second-largest cryptocurrency retreated to the $3,600 region following a near 6% drop.



The slump triggered over $675 million in cryptocurrency liquidations in the last 24 hours, with long liquidations hitting $578 million.



The decline came following Fed Chair Jerome Powell's comments during the press conference following the Federal Open Market Committee meeting, where he disclosed that the central bank can't hold Bitcoin and it wasn't looking for a law change.



Bitcoin's Open Interest dropped 1.1%, however, the number of traders taking long positions for the coin surged above 50%, indicating expectations of a revival.



Over $1 billion in short positions risked liquidation if Bitcoin recovers to $105,900.



Market sentiment cooled from "Extreme Greed" to "Greed," according to the Cryptocurrency Fear &amp; Greed Index, signaling a decline in FOMO.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:45 p.m. ET)</td></tr><tr><td>Pudgy Penguins (PENGU)</td><td>+21.82%</td><td>$0.03574</td></tr><tr><td>Bitget Token (BGB)</td><td>+7.95%</td><td>$4.24</td></tr><tr><td>Monero (XMR)</td><td>+0.87%</td><td>$214.23</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.51 trillion, dropping over 5% in the last 24 hours.



Stocks got pounded on Wednesday. The Dow Jones Industrial Average plunged 1,123.03 points, or 2.58%, to close at 42,326.87 as the index posted its 10th consecutive losing day. The S&amp;P 500 slipped 2.95%, ending at 5,872.16, while the tech-focused Nasdaq Composite dipped 3.56% to 19,392.69.



The market suffered <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42563299/feds-powell-shocks-markets-its-a-new-phase-were-significantly-closer-to-neutral">despite the Fed's latest 25-basis-point reduction</a> as Chair Powell hinted at a more cautious stance in 2025, with just two more 0.25% rate cuts projected next year, compared to the four anticipated in September.



The benchmark 10-year Treasury yields leaped to 4.5%, the highest since early June, as risk sentiment evaporated.



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



Analyst Notes: Widely followed cryptocurrency analyst and trader Ali Martinez weighed in on the central bank's policy shift, stating that 2025 looks a "lot less rosy."



"For now, keep calm, don't panic sell, and remember: markets hate uncertainty, but they also thrive on it when the dust settles. Let's see where this goes from here," Martinez advised traders.



In his analysis of the Federal Reserve action, Ali said, &#8220;It wasn't today's 25 bps cut that made markets freak out—it was the realization that inflation might stick around longer, and the Fed's not quite ready to take its foot off the gas. Sentiment is shifting, and 2025 suddenly looks a lot less rosy.



<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">What's the deal with today's market chaos? The Fed went ahead with a predictable 25 bps rate cut. No surprises there—97% of people expected it. But then, Bitcoin tanked around $100,000. Why? Let me explain without the usual Fed jargon. ————————- This is a glimpse of the premium… <a href="https://t.co/wANPW4t2uV">pic.twitter.com/wANPW4t2uV</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1869520970832138261?ref_src=twsrc%5Etfw">December 18, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Another well-known analyst, Rekt Capital, noted Bitcoin's daily close above $100,000 but cautioned that it wasn't enough.



&#8220;However, for BTC to move up from here, it would need to reclaim ~$101,000 as support, much like it did on Dec. 14. Otherwise, $101,000 could turn into new resistance, which could mean the downside isn&#8217;t over," 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> Ultimately, BTC has Daily Closed above $100k However for BTC to move up from here, it would need to reclaim ~$101k (red) as support, much like it did on December 14th Otherwise, $101k could turn into new resistance which could mean the downside isn&#39;t over<a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> <a href="https://twitter.com/hashtag/Crypto?src=hash&amp;ref_src=twsrc%5Etfw">#Crypto</a>… <a href="https://t.co/964IqYsdpo">https://t.co/964IqYsdpo</a> <a href="https://t.co/mxhL04PnsH">pic.twitter.com/mxhL04PnsH</a>&mdash; Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1869542342266683693?ref_src=twsrc%5Etfw">December 19, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



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



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42560698/microstrategys-aggressive-bitcoin-strategy-raises-eyebrows-in-crypto-community">MicroStrategy&#8217;s Aggressive Bitcoin Strategy Raises Eyebrows In Crypto Community</a></li>
</ul>

$DOGE

$ETH

Bitcoin, Ethereum, Dogecoin Fall After Fed Shows No Interest For Piling BTC: Top Analyst Says Sentiment Shifting — '2025 Suddenly Looks A Lot Less Rosy'

Bill Ackman, CEO Of Pershing Square Capital Management, shared his views on how the Department of Government Efficiency can effectively influence policy decisions, using the <a href="https://www.benzinga.com/general/social-media/24/12/42566558/house-republicans-reject-spending-bill-under-pressure-from-trump-musk-government-faces-shutdown">recently scuttled spending bill</a> as an example.



What Happened: On Wednesday, Ackman outlined a three-step strategy for DOGE to make an impact. In a post on X, the billionaire used the recent events surrounding the spending bill as a case study for how DOGE can progress rapidly.



Ackman outlined a three-step process that led to the bill&#8217;s apparent defeat. According to him, the sequence began with DOGE co-head Vivek Ramaswamy&#8217;s analysis of the bill on X, followed by public criticism from users including his fellow DOGE leader Elon Musk who highlighted what they considered wasteful spending. The final step, Ackman suggested, was Congress members&#8217; reluctance to support the legislation amid concerns about primary challenges and public backlash over what he characterized as &#8220;pork and other waste.&#8221;



<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">People have expressed skepticism about how <a href="https://twitter.com/DOGE?ref_src=twsrc%5Etfw">@DOGE</a> can be effective without any formal authority. I think today's events around the spending bill provide a road map for rapid DOGE progress. There are three steps to successful DOGE execution: Step 1 Transparency<a href="https://twitter.com/VivekGRamaswamy?ref_src=twsrc%5Etfw">@VivekGRamaswamy</a>… <a href="https://t.co/cXc1kaxZjZ">https://t.co/cXc1kaxZjZ</a>&mdash; Bill Ackman (@BillAckman) <a href="https://twitter.com/BillAckman/status/1869524556060275166?ref_src=twsrc%5Etfw">December 18, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The post came in the wake of a rejected spending bill that had been under scrutiny for its content. The bill, which was opposed by a significant number of House GOP members, including President-elect Donald Trump, failed to secure the necessary support to pass.



Ackman&#8217;s post was in reaction to a post by Ramaswamy who dished out &#8220;real-time&#8221; advice to Congress and urged it to go &#8220;back to the drawing board&#8221; on the bill. He said that there was still &#8220;time for forgiveness.&#8221;



Musk too highlighted the role of X users in the abandoning of the spending bill. He said, &#8220;This was a good day for America.&#8221;



<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 voice of the people was heard. This was a good day for America. <a href="https://t.co/r8K4AcbDYf">https://t.co/r8K4AcbDYf</a>&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1869521075761234338?ref_src=twsrc%5Etfw">December 18, 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/markets/24/12/42497173/investment-guru-peter-lynch-if-you-cant-explain-to-an-11-year-old-in-2-minutes-or-less-why-you-own-the-stock-you-shouldnt-own-it?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Investment Guru Peter Lynch: &#8216;If You Can&#8217;t Explain To An 11-Year-Old In 2 Minutes Or Less Why You Own The Stock, You Shouldn&#8217;t Own It&#8217;</a>



Why It Matters: The spending bill&#8217;s rejection marked a significant moment in U.S. politics. The bill, which aimed to extend federal funding until March 14 and avert a government shutdown, was met with opposition.



Earlier, Congressional leaders had reached a consensus on a <a href="https://www.benzinga.com/24/12/42544562/congressional-leaders-reach-bipartisan-deal-to-avert-government-shutdown">bipartisan deal</a> to extend government funding, thereby averting the looming December 20 shutdown deadline. The agreement, which included a one-year farm bill extension and approximately $100 billion in disaster relief, marked the end of weeks of negotiations over disaster aid and overall funding.



Last month, Trump <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">appointed Musk and Ramaswamy</a> to lead DOGE, which is aimed at cutting bureaucracy, waste, and federal spending by 2026. Musk and Ramaswamy have pledged bold reforms.



Democrats have criticized the abandoning of the bill. Rep. Hakeem Jeffries (D-N.Y.) said that Republicans are hurting the working class Americans they claim to support by ordering a &#8220;shut down&#8221; of the government. He said, &#8220;You break the bipartisan agreement, you own the consequences that follow.&#8221;



<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">House Republicans have been ordered to shut down the government. And hurt the working class Americans they claim to support. You break the bipartisan agreement, you own the consequences that follow.&mdash; Hakeem Jeffries (@RepJeffries) <a href="https://twitter.com/RepJeffries/status/1869493488460669104?ref_src=twsrc%5Etfw">December 18, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Bill Ackman. Photo by Center for Jewish History, NYC via Wikimedia Commons



Did You Know?



<ul>
<li>Congress Is Making Huge Investments. <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>



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>

General

Bill Ackman Says Events Around The Scuttled Spending Bill Provide A Road Map For 'Rapid DOGE Progress'

Federal Reserve Chair Jerome Powell adopted a hawkish stance during his Wednesday press conference after the December Fed meeting, sparking a market bloodbath as the New York session <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42563299/feds-powell-shocks-markets-its-a-new-phase-were-significantly-closer-to-neutral">headed to the close.</a>



Although the Federal Reserve lowered interest rates by 0.25% to a range of 4.25%-4.5%, as widely anticipated, the updated economic projections suggest just two potential rate cuts in 2025 — down from four projected in September and fewer than the three anticipated by markets before the meeting.



Powell described the shift as &#8220;a new phase&#8221; for monetary policy, emphasizing that after 100 basis points of rate cuts in 2024, rates are now significantly closer to a neutral stance. 



Stocks tumbled across the board, the U.S. dollar soared to two-year highs and Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) cratered over 5%, as investors digested the reality of a shift in the monetary policy stance by the Federal Reserve.



The CBOE Volatility Index, known as the VIX and Wall Street&#8217;s fear gauge, skyrocketed 58% to 25, reflecting a spike in investor uncertainty and heightened anxiety over the future of interest rates.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="557" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18161803/image-161-1024x557.png" alt="" class="wp-image-698569" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18161803/image-161-1024x557.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18161803/image-161-300x163.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18161803/image-161-768x418.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18161803/image-161-1536x836.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18161803/image-161.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">Wall Street Wipeout: Major Indices Slammed</h3>



The Dow Jones Industrial Average, as tracked by the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>), dropped 1,123 points, falling 2.6% to close at 42,326, marking its worst one-day drop since September 2022. Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) recorded the worst performance among blue-chip stocks, down 4.6%.



The S&amp;P 500 index — tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — fell 178 points, down 2.9% to 5,872, also marking its worst day since September 2022. Paycom Software Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PAYC#NYSE">PAYC</a>) was the major laggard within the S&amp;P 500, down 10%.



The tech-heavy Nasdaq 100, tracked by the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), experienced an even sharper drop of 3.6%, closing at 21,209 as interest rate-sensitive technology stocks took a beating. Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) tumbled 8.1%, marking the worst performance within the Nasdaq 100.



Every Magnificent Seven company ended the day in the red, collectively erasing more than $600 billion in market value on Wednesday.



Small caps in the Russell 2000 posted the steepest losses, plummeting 4.7% to 2,225. With Wednesday&#8217;s move, the iShares Russell 2000 ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NASDAQ">IWM</a>) has fully erased the post-election rally.



All major U.S. equity sectors finished in the red. 



Consumer Discretionary stocks suffered the most, plunging 4.5%, followed by Real Estate, which dropped 4% as rising rates weigh heavily on growth-oriented and interest-rate-sensitive industries.



Technology, the largest sector by market capitalization, fell 3.2%, with chipmakers and software companies bearing the brunt of the selloff. 



Communications and Materials both declined 2.9%, while Financials dropped 3%, reflecting pressure across cyclical areas of the market.



Even traditionally defensive sectors failed to escape the selloff. Utilities and Consumer Staples fell 2.4% and 1.5%, respectively.



<h3 class="wp-block-heading">Dollar Surges To 2-Year Highs, Hammers Gold And Bitcoin</h3>



The U.S. dollar emerged as the day's clear winner, with the dollar index (DXY), followed by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), climbing 1.2% to reach its highest level since November 2022.



As the greenback rallied, gold failed to provide a safe haven, falling 2.1% to $2,580 per ounce, while silver dropped 3.5%.



Risk-off sentiment extended into alternative assets. Bitcoin plunged 5.5%, trading just above $101,500.



During the press conference, Powell was asked whether the U.S. government should consider building a strategic reserve of Bitcoin. Powell quickly dismissed the idea, making it clear that such a move is not on the Fed&#8217;s radar.



"We're not allowed to own Bitcoin," Powell said, emphasizing the legal and structural limitations of the Federal Reserve. "The Federal Reserve Act dictates what we can own, and we're not seeking any changes to that law."



Read Next: 



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<li><a href="https://www.benzinga.com/news/econ-s/24/12/42561549/fed-slashes-interest-rates-by-0-25-as-predicted-december-dot-plot-flags-only-2-potential-cuts-in-2025">Fed Slashes Interest Rates By 0.25% As Predicted: December Dot Plot Flags Only 2 Potential Cuts In 2025</a></li>
</ul>



Illustration generated with AI via Dall-E.

Large Cap

Currency ETFs

AMZN

PAYC

TSLA

Powell Triggers Market Carnage: VIX Spikes 58%, Stocks Plummet, Dollar Hits 2-Year Highs, Bitcoin Nosedives

Micron Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) reported financial results for the first quarter of fiscal 2025 after the market close on Wednesday. Here&#8217;s a rundown <a href="https://www.benzinga.com/pressreleases/24/12/g42563530/micron-technology-inc-reports-results-for-the-first-quarter-of-fiscal-2025">of the report</a>.



Q1 Earnings: Micron reported first-quarter revenue of $8.71 billion, missing the&nbsp;<a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">consensus estimate</a>&nbsp;of $8.72 billion. The company reported first-quarter adjusted earnings of $1.79 per share, beating analyst estimates of $1.76 per share, according to&nbsp;<a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Operating cash flow came in at $3.24 billion versus $3.41 billion in the prior quarter and $1.4 billion in the comparable quarter last year. Adjusted free cash flow was $112 million in the quarter, down from $323 million in the prior quarter. The company ended the quarter with $8.75 billion in cash, marketable investments and restricted cash.



&#8220;Micron delivered a record quarter, and our data center revenue surpassed&nbsp;50%&nbsp;of our total revenue for the first time,&#8221; said&nbsp;Sanjay Mehrotra, president and CEO of Micron.



&#8220;While consumer-oriented markets are weaker in the near term, we anticipate a return to growth in the second half of our fiscal year. We continue to gain share in the highest margin and strategically important parts of the market and are exceptionally well positioned to leverage AI-driven growth to create substantial value for all stakeholders.&#8221;



Check This Out: <a href="https://www.benzinga.com/trading-ideas/24/12/42561975/whos-next-to-join-tesla-broadcom-in-1-trillion-club-over-50-say-the-worlds-biggest-retailer">Who&#8217;s Next To Join Tesla, Broadcom In $1 Trillion Club? Over 50% Say The World&#8217;s Biggest Retailer</a>



Outlook:&nbsp;Micron sees second-quarter revenue of $7.9 billion, plus or minus $200 million, versus estimates of $9 billion. The company expects second-quarter adjusted earnings of $1.43 per share, plus or minus 10 cents per share, versus estimates of $1.92 per share. 



Micron&#8217;s soft guidance appears to be weighing on shares after hours. Management will further discuss the quarter on a call with analysts and investors at 4:30 p.m. ET. 



MU Price Action: <a href="https://www.benzinga.com/quote/MU" target="_blank" rel="noreferrer noopener">Micron shares</a> were down 13.16% in after-hours, trading at $90.50 at the time of publication Wednesday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Read Next:



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<li><a href="https://www.benzinga.com/news/econ-s/24/12/42561549/fed-slashes-interest-rates-by-0-25-as-predicted-december-dot-plot-flags-only-2-potential-cuts-in-2025">Fed Slashes Interest Rates By 0.25% As Predicted: December Dot Plot Flags Only 2 Potential Cuts In 2025</a></li>
</ul>



Photo: Courtesy of Micron.

Guidance

After-Hours Center

Micron Q1 Earnings: Revenue Miss, EPS Beat, Soft Guidance Sinks Shares As Consumer Markets Turn 'Weaker' In Near Term

In a year marked by three consecutive rate cuts totaling 100 basis points, Federal Reserve Chair Jerome Powell said the Fed is shifting gears to a more cautious stance heading into 2025 as interest rates move tantalizingly close to a neutral <a href="https://www.benzinga.com/news/econ-s/24/12/42561549/fed-slashes-interest-rates-by-0-25-as-predicted-december-dot-plot-flags-only-2-potential-cuts-in-2025">environment for the economy.</a>



Following the latest 25-basis-point reduction announced Wednesday, the federal funds rate now sits at 4.25%-4.5%, the lowest since January 2023.



&#8220;We&#8217;re significantly closer to neutral,&#8221; Powell said during the post-meeting press conference. &#8220;From this point forward, it's appropriate to move cautiously and look for further progress on inflation,&#8221; he added. 



<h3 class="wp-block-heading">Powell Confirms Slower Rate Cuts On The Horizon</h3>



&#8220;I think from here it&#8217;s a new phase and we&#8217;re going to be cautious about further cuts," the Fed chair said.



The Fed&#8217;s December dot plot projects only two additional 25-basis-point cuts in 2025, compared to the four anticipated in September. The updated projections peg the federal funds rate at 3.9% by the end of next year and 3.4% by the close of 2026.



&#8220;With today&#8217;s action, we have lowered our policy rate by a full percentage point from its peak, and our policy stance is now significantly less restrictive,&#8221; Powell said. 



This shift toward caution was reflected in the FOMC's statement, which introduced new language about the &#8220;extent and timing&#8221; of future adjustments. 



Powell indicated that &#8220;extent&#8221; refers to how much room the Fed has left to cut rates without overstimulating the economy, while &#8220;timing&#8221; suggests a slower pace of change going forward.



<h3 class="wp-block-heading">Inflation Job Not Over, Labor Market Gradually Softer</h3>



Despite this year's progress, inflation remains a thorn in the Fed's side. 



Headline PCE inflation is now expected to reach 2.5% in 2025, up from the September estimate of 2.1%. Core PCE inflation is also forecast to hit 2.5%, up from 2.2% previously. 



Powell highlighted the challenges of achieving the Fed's 2% target: "While we've made a great deal of progress, it has been slower than we had hoped."



Despite the challenges, Powell struck a confident tone about the Fed's ability to bring inflation sustainably back to its 2% target. 



"We're not going to settle for anything less than 2%," Powell said. "It might take another year or two, but we are on the path."



Powell described conditions as &#8220;solid,&#8221; with the unemployment rate at 4.2%, the same as it was in July.



While job creation has slowed, Powell dismissed concerns of significant downside risks. "The labor market is gradually cooling in an orderly way," he said.



The hiring rate remains low, signaling reduced demand for workers, but layoffs are not increasing, Powell said. "This is a good labor market," he added. &#8220;Wages are growing at a healthy, sustainable pace, and we aim to keep it that way.&#8221;



<h3 class="wp-block-heading">Trump And Tariffs Risks</h3>



Powell also addressed questions on fiscal policy risks under the incoming Trump administration and inflationary effects of tariffs.



When asked whether policymakers factored in risks tied to the potential policy shifts under a new Trump administration, Powell struck a measured tone, stating the Fed is monitoring potential fiscal developments but refraining from speculation until specific policies are announced. 



"We're in a good place, but fiscal changes can influence inflation and economic growth," he said.



&#8220;We're in the phase of monitoring potential outcomes, not making policy assumptions.&#8221;



On tariffs, Powell said that while one-time tariff-driven price increases don't always translate into persistent inflation, the Fed will take a &#8220;careful and measured approach&#8221; in evaluating the effects if new tariffs are enacted. 



<h3 class="wp-block-heading">Market Plummets After Powell&#8217;s Remarks</h3>



Following Powell&#8217;s remarks, Fed futures imply just 37 basis points of cuts in 2025, down from 49 basis points immediately after the Fed statement. 



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>) — extended its session losses during Powell&#8217;s press conference, tumbling by 2.6%, eyeing its worst session since September 2022.



The Nasdaq 100 tumbled by 3.5%, the Dow fell 2.3% and small cap stocks in the Russell 2000 tanked over 4%. 



The U.S. dollar index, trackd by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), rocketed by 1.2%, reaching highs last seen in November 2022.



Gold plummeted over 2% and silver fell by 3.5%.



Bitcoin nosedived by 5.5%, hovering around $100,000.



<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="&#x1f534;WATCH LIVE: US Fed Rate Cut &#x7C; FOMC Meeting &#x7C; Jerome Powell Speech LIVE &#x7C; December 18th, 2024" width="500" height="281" src="https://www.youtube.com/embed/WQdK2IixF5c?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>
</div></figure>



Read Next:



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<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42558766/mortgage-applications-dip-as-rates-climb-it-is-still-cheaper-to-rent-than-purchase-for-82-out-of-97-major-cities">Mortgage Applications Dip As Rates Climb: &#8216;It Is Still Cheaper To Rent Than Purchase For 82 Out Of 97 Major Cities&#8217;</a></li>
</ul>



Federal Reserve Chair Jerome Powell speaks at Dec. 18, 2024 press conference following interest rate cut. Photo courtesy of the Federal Reserve.

Fed's Powell Shocks Markets After Interest Rate Cut: 'It's A New Phase'

The list of companies that have market capitalizations greater than $1 trillion continues to grow with Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) recently joining the club after its quarterly financial results sparked <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42488220/broadcom-hits-1-trillion-milestone-the-next-magnificent-tech-giant">a rally in shares.</a>



A Benzinga poll asks readers which company could be next to join the elusive club.



What Happened: Less than two years ago, investors could count on one hand the number of companies that were valued at more than $1 trillion. That changed in May 2023 when NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) became the sixth company in the club and ninth public company in history to be valued at <a href="https://www.benzinga.com/news/23/05/32630114/nvidia-becomes-ninth-company-to-hit-1-trillion-market-cap-who-could-be-next-to-join-elusive-club">more than $1 trillion.</a>



Fast forward to December 2024 and there are now 10 companies valued at $1 trillion or more. Berkshire Hathaway Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) crossed the milestone earlier this year and currently hovers near it again, with a market capitalization of $983 billion.



Here is the current list of members in the $1 trillion market capitalization club, according to <a href="https://companiesmarketcap.com/">Companiesmarketcap.com</a>:



<ul>
<li>Apple: $3.82 trillion</li>



<li>Microsoft: $3.35 trillion</li>



<li>Nvidia: $3.30 trillion</li>



<li>Amazon.com: $2.43 trillion</li>



<li>Alphabet: $2.39 trillion</li>



<li>Saudi Aramco: $1.83 trillion</li>



<li>Meta Platforms: $1.57 trillion</li>



<li>Tesla: $1.52 trillion</li>



<li>Broadcom: $1.10 trillion</li>



<li>Taiwan Semiconductor: $1.06 trillion</li>
</ul>



Benzinga recently asked who will be the next company to join the club for the first time with Berkshire Hathaway left out due to its close proximity and the fact it had already been in the club.



"Following Broadcom, which company will join the $1 trillion club next?" Benzinga asked.



The results were as follows along with the market caps at the time the poll was conducted:



<ul>
<li>Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>), $759 billion: 53%</li>



<li>Eli Lilly (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>), $757 billion: 24%</li>



<li>JPMorgan Chase (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), $675 billion: 13%</li>



<li>Visa Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>), $619 billion: 9%</li>
</ul>



Over half of readers polled said they believe Walmart will be the next company to join the $1 trillion club for the first time, followed by Eli Lilly at around one fourth of readers.



Here's a look at the current year-to-date and five-year returns of the four stocks featured in the poll:



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="765" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18143238/output-1024x765.png" alt="" class="wp-image-698436" style="width:920px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18143238/output-1024x765.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18143238/output-300x224.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18143238/output-768x574.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18143238/output.png 1446w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



Chart created using ChatGPT.



The chart above shows that while Walmart is the top gainer year-to-date, it is Eli Lilly that has the better five-year stock growth.



Read Also: <a href="https://www.benzinga.com/etfs/specialty-etfs/24/07/39618512/nancy-pelosi-loads-up-on-more-nvidia-shares-sells-tesla-she-always-reports-right-before-a-hol">Nancy Pelosi Loads Up On More Nvidia Shares, Buys Broadcom Options </a>



Why It's Important: Broadcom stock is up 28% over the last five days and up over 113% year-to-date. The company <a href="https://www.benzinga.com/news/earnings/24/12/42472970/broadcom-reports-mixed-q4-results-eps-beat-revenues-miss-q1-guidance-in-line-with-estimates">beat fourth-quarter</a> analyst earnings per share, missed revenue estimates and provided guidance that was in-line. The guidance and positive outlook was enough to send shares higher and provide entry into the club.



Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), which was previously a member of the club, has <a href="https://www.benzinga.com/news/management/24/11/41856784/elon-musks-wealth-tops-300-billion-as-teslas-market-cap-soars-above-1-trillion">rejoined the $1 trillion club</a> thanks to impressive gains for the electric vehicle stock since Donald Trump won the 2024 presidential election.



Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) is another company that was previously in the $1 trillion club years ago and rejoined the club earlier this year.



In August, <a href="https://www.benzinga.com/top-stories/24/08/40604676/warren-buffetts-berkshire-hathaway-breaks-1-trillion-poll-points-to-big-pharma-not-tech-as-next-cont">Benzinga polled readers </a>to ask which company they thought would hit the $1 trillion valuation next after Berkshire Hathaway joined.



The results were:



<ul>
<li>Eli Lilly: 43%</li>



<li>Taiwan Semiconductor: 25%</li>



<li>Tesla: 19%</li>



<li>Broadcom: 11%</li>



<li>Walmart: 3%</li>
</ul>



That poll was conducted when Eli Lilly and Taiwan Semiconductor both traded with market capitalizations of around $800 billion. Readers ended up being wrong with Eli Lilly still out of the club, while Taiwan Semiconductor, Tesla and Broadcom have all joined in recent months.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/tech/24/11/42121665/could-another-magnificent-7-stock-beat-nvidia-in-2025-poll-says-not-likely-27-pick-this-potential-winner">Could Another Magnificent 7 Stock Beat Nvidia In 2025? Poll Says Not Likely, 27% Pick This Potential Winner</a></li>
</ul>



The study was conducted by Benzinga from Dec. 16 through Dec. 17, 2024, and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 128 adults.



Image created using artificial intelligence via Midjourney.

Exclusives

AVGO

NVDA

Who's Next To Join Tesla, Broadcom In $1 Trillion Club? Over 50% Say The World's Biggest Retailer

The Federal Reserve closed out the year with a widely anticipated 25 basis-point interest rate cut Wednesday, lowering the federal funds rate to a<a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42556652/20-etfs-primed-for-unusually-big-swings-on-fed-meeting-days"> range of 4.25%-4.5%. </a>



This marks the lowest level since January 2023 and is the third consecutive reduction in borrowing costs, following a 50-basis-point cut in September and a 25 basis-point move in November.



The decision to lower interest rates was not unanimous, as Cleveland Fed President Beth M. Hammack voted to maintain the target range unchanged at 4.5%-4.75%.



The Fed's statement showed a meaningful language change, with the addition of the words &#8220;extent&#8221; and &#8220;timing&#8221; in reference to future policy adjustments. This shift signals a more cautious approach to further rate cuts in 2025.



&#8220;In considering the extent and timing of additional adjustments, to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,&#8221; the December Federal Open Market Committee statement said. 



<h3 class="wp-block-heading">Economic Projections Signal Fewer Rate Cuts, Higher Inflation</h3>



The Fed&#8217;s December dot plot, which illustrates each policymaker&#8217;s projected path for interest rates, indicates a median expectation for the federal funds rate to decrease to a midpoint of 3.9% by the end of 2025.



This projection suggests the potential of only two additional 0.25% rate cuts during next year, a meaningful revision from the full percentage point of cuts expected in September.



For 2026, the Fed projects the fed funds rate to fall to a midpoint of 3.4%, up from 2.9% in September.



The Fed materially raised its inflation expectations for 2025, projecting headline Personal Consumption Expenditure inflation at 2.5% compared to 2.1% in September. Core PCE inflation, which excludes volatile food and energy prices, is now forecast to reach 2.5% in 2025, up from the prior estimate of 2.2%.



The Fed reaffirmed that economic activity remains &#8220;solid&#8221; and said that, despite some easing in labor market conditions, the unemployment rate continues to be low.



Economic growth for 2025 was upwardly revised by 0.1 percentage points from September. 



Leading into the December Fed meeting, money markets priced in an 80% probability of a rate pause in January, followed by a 60% likelihood of a rate cut in March.



Overall, CME FedWatch data reflected a 70% probability of at least three rate cuts by the end of 2025.



In contrast, the CFTC-regulated betting platform Kalshi showed a more aggressive outlook, with a 98% chance of four rate reductions next year.



<h3 class="wp-block-heading">Fed&#8217;s December Summary of Economic Projections</h3>



<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>2.4</td><td>2.1</td><td>2.0</td><td>1.9</td><td>1.8</td></tr><tr><td>Sept. projection </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>4.2</td><td>4.3</td><td>4.3</td><td>4.3</td><td>4.2</td></tr><tr><td>Sept. projection</td><td>4.4</td><td>4.4</td><td>4.3</td><td>4.2</td><td>4.2</td></tr><tr><td>PCE inflation </td><td>2.4</td><td>2.5 </td><td>2.1</td><td>2.0 </td><td>2.0 </td></tr><tr><td>Sept. projection</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>2.8 </td><td>2.5</td><td>2.1</td><td>2.0 </td><td></td></tr><tr><td>Sept. projection</td><td>2.6</td><td>2.2</td><td>2.0</td><td>2.0</td><td></td></tr><tr><td>Federal funds rate </td><td>4.4</td><td>3.9</td><td>3.4</td><td>3.1 </td><td>3.0</td></tr><tr><td>Sept. projection</td><td>4.4</td><td>3.4</td><td>2.9</td><td>2.9</td><td>2.9</td></tr></tbody></table><figcaption class="wp-element-caption">Source: Federal Reserve </figcaption></figure>



<h3 class="wp-block-heading">Markets Tumble After Fed </h3>



<ul>
<li>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>) – tumbled by 0.6% minutes following the decision, and the tech-heavy Nasdaq 100 – tracked by the Invesco QQQ Trust, Series 1 – suffered heavier losses, down by 0.7%. </li>



<li>The U.S. dollar index – as closely tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – jumped 0.7%, eyeing the highest close since November 2022. </li>



<li>Treasury yields rallied with the 10-year benchmark yield rising to 4.44%. </li>



<li>Gold prices tanked 0.9%, and silver fell even more, down 1.7%. </li>



<li>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) was 2% lower to $104,000. </li>
</ul>



Read Next:



<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>



Illustration created using artificial intelligence via Midjourney.

Fed Slashes Interest Rates By 0.25% As Predicted: December Dot Plot Flags Only 2 Potential Cuts In 2025

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