U.S. stock futures declined on Tuesday in premarket hours as Wall Street awaits <a href="https://www.benzinga.com/topic/federal-reserve">Federal Reserve</a>&#8216;s final interest rate decision for the current year and its monetary policy forecasts for 2025.



On Monday, the tech-heavy <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42515044/broadcom-tesla-propel-nasdaq-100-gains-bitcoin-hits-107000-fueling-crypto-stocks-rally-whats-driving-markets-monday">Nasdaq 100 set a new record high</a> and crossed the 22,000-point milestone, whereas Dow Jones fell for eight sessions. The futures of all four major indices were trading lower.



The 10-year and two-year Treasury notes yielded 4.42% and 4.27%, respectively. The Federal Open Market Committee will begin its two-day meeting, later in the day.



See Also: <a href="https://www.benzinga.com/trading-ideas/movers/24/12/42522084/bitcoin-ethereum-dogecoin-settle-down-amid-growing-talks-of-a-strategic-btc-reserve-top-analyst-sees-prospect-of-apex-crypto-hitting-110k-this-week">Bitcoin, Ethereum, Dogecoin Settle Down Amid Growing Talks Of A Strategic BTC Reserve: Top Analyst Sees Prospect Of Apex Crypto Hitting $110K This Week</a>



It is widely expected to announce another interest rate reduction at the conclusion of their meeting on Wednesday. The probability of a further 25 basis point rate cut in December was at 96.3% versus 61.9% probability a month ago, according to <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">CME Group&#8217;s FedWatch tool</a>.



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&#8216;s remarks will be closely scrutinized by market participants.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>-0.07%</td></tr><tr><td>S&amp;P 500</td><td>-0.25%</td></tr><tr><td>Dow Jones</td><td>-0.31%</td></tr><tr><td>Russell 2000</td><td>-0.10%</td></tr></tbody></table></figure>



In premarket trading on Tuesday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was down 0.24% to $605.36 and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 0.087% to $537.70, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.



Cues From The Last Session



Tech stocks continued their <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42515044/broadcom-tesla-propel-nasdaq-100-gains-bitcoin-hits-107000-fueling-crypto-stocks-rally-whats-driving-markets-monday">upward trajectory</a> on Monday, with the Nasdaq 100 index surging over 1.4%. Key index components drove this rally.



Broadcom Inc. led the charge, skyrocketing over 11% after receiving favorable analyst ratings. The company&#8217;s AI-driven growth potential was further bolstered by its recent announcement of a partnership with Apple Inc. to develop a cutting-edge AI chip.



Tesla Inc also experienced significant gains, climbing more than 6%. This surge extended its post-election rally, fueled by positive analyst sentiment. Wedbush Securities highlighted Tesla&#8217;s potential as a &#8220;game-changer&#8221; in AI and autonomous driving under the Trump administration.



Other indices also saw positive momentum, with the Russell 2000 rising 0.64% and the S&amp;P 500 edging up 0.38%. However, the Dow Jones Industrial Average dipped 0.25%, primarily due to losses in the energy and healthcare sectors.



On the economic front, private-sector surveys indicated a stronger-than-expected rebound in December activity. The services sector PMI soared to 58.5, marking the highest level since October 2021. The Composite PMI also climbed to 56.6, its best reading since April 2022, as robust growth in services offset continued weakness in manufacturing.



<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>1.24%</td><td>20,173.89</td></tr><tr><td>S&amp;P 500</td><td>0.38%</td><td>6,074.08</td></tr><tr><td>Dow Jones</td><td>-0.25%</td><td>43,717.48</td></tr><tr><td>Russell 2000</td><td>0.64%</td><td>2,361.99</td></tr></tbody></table></figure>



<ul>
<li>See Also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42515044/broadcom-tesla-propel-nasdaq-100-gains-bitcoin-hits-107000-fueling-crypto-stocks-rally-whats-driving-markets-monday">Broadcom, Tesla Propel Nasdaq 100 Gains, Bitcoin Hits $107,000, Fuels Crypto Stocks Rally: What&#8217;s Driving Markets Monday?</a></li>
</ul>



Insights From Analysts



As the market continues to exhibit resilience, driven by hopes of AI-led growth and reduced regulatory hurdles, the actual economic impact of AI adoption is still some time away, said Jeremy Siegel. &#8220;This disconnect between potential and reality allows the bullish sentiment surrounding the sector to persist,&#8221; he added.



Siegel is a senior economist at WisdomTree and emeritus professor of finance at the Wharton School, University of Pennsylvania.



&#8220;A rotation into neglected areas of the market, such as value or small-cap stocks, could materialize in 2025 if regulatory reforms and easing financial conditions create a more favorable backdrop for these non-tech segments. Investors should remain vigilant as tech valuations climb further, with an eye toward rebalancing opportunities early next year,&#8221; Siegel wrote in his weekly market commentary.



The chief market strategist at Carson Group, Ryan Detrick spoke about the continued skewness in the market breadth, in an X post. He asked a rhetorical question &#8220;Many claim this (trend) is bearish, but is it?&#8221;



According to the data shared by him, the last time market breadth was in the favour of decliners for 11 days, the index rose by 35.6% over the next year.



&#8220;Looking at the longest streaks ever actually appears to be rather bullish. Significant outperformance across the board out one year,&#8221; he 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">11 days in a row with more decliners than advancers on the S&amp;P 500, ties longest streak since 1990. Many claim this is bearish, but is it? Looking at the longest streaks ever actually appears to be rather bullish. Significant outperformance across the board out one year. &#x1f914; <a href="https://t.co/mgDJ0wVlYY">pic.twitter.com/mgDJ0wVlYY</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1868864558728986744?ref_src=twsrc%5Etfw">December 17, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



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 Tuesday, U.S. retail sales data for November will be announced at 8:30 a.m., ET.</li>



<li>The industrial production and capacity utilization data for November will be announced at 9:15 a.m., ET.</li>



<li>The home builder confidence index data will be released for December at 10:00 a.m., ET.</li>



<li>And, lastly, the Federal Open Market Committee meeting will begin on Tuesday.</li>
</ul>



Stocks In Focus:



<ul>
<li>Sealsq Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LAES#NASDAQ">LAES</a>) rose 25.31% in premarket after it announced that institutional investors will sell 7,692,308 ordinary shares of the company at $1.30 per share in a registered direct offering, expected to close on Dec. 16.</li>
</ul>



<ul>
<li>Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) was up 2.63%, continuing its momentum from yesterday after receiving an upgrade in its price target by Wedbush Securities.</li>
</ul>



<ul>
<li>Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) was down 2.08% after CNBC&#8217;s Jim Cramer cautioned investors, saying that a &#8220;reversal&#8221; will happen and it will be a &#8220;vicious&#8221; one.</li>
</ul>



<ul>
<li>D-Wave Quantum Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QBTS#NYSE">QBTS</a>) was up 5.12% after CEO Alan Baratz highlighted it&#8217;s leadership in quantum computing, emphasizing their focus on delivering real-world value to customers through annealing quantum computing.</li>
</ul>



<ul>
<li>Quantum Computing Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QUBT#NASDAQ">QUBT</a>) was up 4.69% after it recently announced its second purchase order for its thin-film lithium niobate photonic chip foundry from the University of Texas, Austin.</li>
</ul>



<ul>
<li>Rigetti Computing Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RGTI#NASDAQ">RGTI</a>) was up 5.81% in premarket amid continued momentum in the quantum computing space. The rally across quantum names follows the announcement of Google&#8217;s quantum computing chip &#8220;Willow,&#8221; which achieves error reduction and performs computations faster than traditional supercomputers.</li>
</ul>



Commodities, Bonds And Global Equity Markets:



Crude oil futures were declining in the early New York session by 1.17% to hover around $69.88 per barrel.



The gold spot index fell by 0.54% to $2,655.61 per ounce. The Dollar Index was up 0.17% to 107.035 level.



Asian markets declined on Tuesday, including Hong Kong&#8217;s Hang Seng, Japan&#8217;s Nikkei 225, India&#8217;s S&amp;P BSE Sensex, and South Korea&#8217;s Kospi index. Australia&#8217;s ASX 200, and China&#8217;s CSI 300 index bucked the trend. Most European markets also fell except France&#8217;s CAC 40 and Euro Stoxx 50.



<ul>
<li>Read Next: <a href="https://www.benzinga.com/markets/equities/24/12/42522048/jim-cramer-warns-nvidias-vicious-and-fast-reversal-is-coming-amid-174-surge-this-year-and-china-antitrust-probe">Jim Cramer Warns Nvidia&#8217;s &#8216;Vicious&#8217; And &#8216;Fast&#8217; Reversal Is Coming Amid 174% Surge This Year And China Antitrust Probe</a></li>
</ul>



Image Via Shutterstock

Equities

News

Previews

Economics

Pre-Market Outlook

Markets

Trading Ideas

General

AAPL

AVGO

LAES

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QBTS

QUBT

RGTI

TSLA

Wall Street Set To Open Lower As Fed Rate Cut Decision, Jerome Powell's Comments Take Center Stage: Wharton's Jeremy Siegel Sees Small-Cap, Value Stock Rotation In 2025

Leading cryptocurrencies simmered down Monday after a smashing rally even as speculations around a U.S. strategic Bitcoin reserve gathered steam.



<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>-0.10%</td><td>$106,072.58</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>-0.69%</td><td>$3,966.41</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>-1.74%</td><td>$0.4009</td></tr></tbody></table></figure>



What Happened: The world&#8217;s largest cryptocurrency broke beyond $107,000 for the first time this afternoon before profit-taking brought it back to $105,000, with a modest increase to $106,000 by evening.



The sentiment was upbeat following reports that President-elect Donald Trump <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42505162/trump-reportedly-considering-executive-order-to-establish-strategic-bitcoin-reserve">might pass an executive order</a> to create a national Bitcoin stockpile.



Bitcoin was already up 9.11% in December, higher than the historical <a href="https://www.coinglass.com/today">average </a>of 5.75%, per Coinglass data.



A similar pattern followed for Ethereum, which failed to decisively break over $4,000 and fell to the upper $3,900 range.



In the past 24 hours, 119,098 traders were liquidated, with the total liquidations at $371.44 million. Longs accounted for 60% of the liquidations.



Over 61% of traders on Binance with open Bitcoin futures positions were short, as per the Long/Short Ratio, suggesting expectations of a pullback.



A rally to $110,000 would wipe out over $500 million worth of short positions, data showed.&nbsp;



The bearish positioning could be due to the "Extreme Greed" sentiment in the market, 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>Bitget Token (BGB)</td><td>+10.80%</td><td>$3.44</td></tr><tr><td>Virtuals Protocol (VIRTUAL)</td><td>+10.07%</td><td>$2.98</td></tr><tr><td>THORChain (RUNE)</td><td>+7.63%</td><td>$6.95</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.71 trillion, following a marginal increase of 0.11% over the last 24 hours.



Stocks were a mixed bag on Monday. The Dow Jones Industrial Average fell for the eighth consecutive day, dropping 110.58 points, or 0.25%, to close at 43,717.48. The S&amp;P 500 rose 0.38% to 6,074.08, while the Nasdaq Composite surged 1.24% to close at a record high of 20,173.89.



The tech surge was powered by the "Mag 7" stocks, as Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) notched their all-time highs during the session.



The rally came just ahead of the Federal Open Market Committee's two-day meeting to decide on the <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">benchmark interest rates</a>. Market participants have priced in a 95% chance of a 25 basis point cut from the current target range of 450-475, according to the CME FedWatch tool.



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



Analyst Notes: Well-known cryptocurrency analyst Ali Martinez sent a cautionary note to investors amid Bitcoin's upsurge.



"I'm holding tight to my HODL bag, but my trading account is 30% cash as market sentiment around Bitcoin hits &#8216;extreme greed&#8217;—a cautionary red flag," the analyst remarked.&nbsp;



<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">I'm holding tight to my HODL bag, but my trading account is 30% cash as market sentiment around <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> hits &#39;extreme greed&#39;—a cautionary red flag. Some altcoins are retracing and triggering my buy orders, but I'm aiming to keep at least 20% cash on hand for flexibility. <a href="https://t.co/915IUEqnC4">pic.twitter.com/915IUEqnC4</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1868654253742620723?ref_src=twsrc%5Etfw">December 16, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Another widely followed analyst, Michaël van de Poppe, foresaw a "ton of volatility" in the market due to the upcoming Fed meeting.



"I won&#8217;t be surprised we&#8217;ll see $110,000 and $95,000 in the same week," Van de Poppe made his predictions.



<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">New all-time high for <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> and a liquidity sweep for <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a>. FED Meeting around the corner, which is likely going to bring a ton of volatility into the markets. I won&#39;t be surprised we&#39;ll see $110K and $95K in the same week.&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1868737314366816596?ref_src=twsrc%5Etfw">December 16, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Image via Shutterstock



Read Next:    



<ul>
<li><a href="https://www.benzinga.com/personal-finance/financial-advisors/24/12/42517262/most-crypto-foward-ria-slams-bitcoin-forecasts-from-michael-saylor-others-disvalues-it-to-me">&#8216;Most Crypto-Foward&#8217; RIA Slams Bitcoin Forecasts From Michael Saylor, Others: &#8216;Disvalues It To Me&#8217;</a></li>
</ul>

Cryptocurrency

Movers

$BTC

$DOGE

$ETH

Bitcoin, Ethereum, Dogecoin Settle Down Amid Growing Talks Of A Strategic BTC Reserve: Top Analyst Sees Prospect Of Apex Crypto Hitting $110K This Week

A New York judge has confirmed the guilty verdict in the hush money case involving President-elect Donald Trump, despite ongoing discussions about presidential immunity.



What Happened: Judge Juan Merchan endorsed the jury&#8217;s decision on Thursday, marking Trump as a felon. This ruling follows Trump&#8217;s recent electoral triumph over Vice President Kamala Harris. The judge has not yet made a decision on Trump&#8217;s request to dismiss the case entirely, given his president-elect status, <a href="https://thehill.com/regulation/court-battles/5043247-trump-hush-money-conviction-uphold/">reported</a> The Hill.



Trump&#8217;s legal team maintained that the evidence presented during his seven-week trial was shielded by the Supreme Court&#8217;s presidential immunity doctrine. This doctrine asserts that former presidents have total&nbsp;immunity from criminal prosecution for&nbsp;exercising core constitutional powers and&nbsp;presumptive immunity for other official&nbsp;acts.



Manhattan District Attorney&nbsp;Alvin Bragg&nbsp;refuted these claims, stating that no evidence presented to the jury was protected. He further contended that&nbsp;even if it was, it&nbsp;was inconsequential compared to the &#8220;overwhelming evidence of defendant&#8217;s guilt.&#8221;



Trump was found guilty on 34 counts of falsifying business records related to a $130,000 hush money payment to adult film actress Stormy Daniels before the 2016 presidential election. Prosecutors portrayed this as an attempt to unlawfully influence the election&#8217;s outcome.



The judge&#8217;s decision on whether to halt the proceedings during Trump&#8217;s term is still pending. Meanwhile, Trump&#8217;s other criminal proceedings have not been as successful following his presidential win.



See Also: <a href="https://www.benzinga.com/politics/24/12/42511472/trump-hits-7-year-high-in-favorability-ratings-how-republicans-democrats-men-and-women-view-president-elect?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump Hits 7-Year High In Favorability Ratings: How Republicans, Democrats, Men And Women View President-Elect</a>



Why It Matters: The Supreme Court had <a href="https://www.benzinga.com/general/politics/24/07/39577351/trump-granted-partial-immunity-by-supreme-court-ruling-says-the-president-is-not-above-the-law-d">previously ruled</a> that Trump and former presidents are entitled to immunity for acts within their Constitutional authority while in office, but not unofficial acts.



Trump&#8217;s <a href="https://www.benzinga.com/news/24/09/40699789/judge-rejects-trumps-attempt-to-move-hush-money-trial-to-federal-court-citing-lack-of-good-cause">attempt to move</a> his hush money criminal case to federal court was denied due to a lack of &#8220;good cause&#8221;, according to a previous report. The <a href="https://www.benzinga.com/general/politics/24/09/40754802/trump-hush-money-sentencing-will-now-take-place-after-2024-election-to-avoid-any-appearance-to-a">sentencing</a> for Trump&#8217;s hush money trial was postponed until after the 2024 presidential election to avoid any potential influence on the election. 



Image via Shutterstock



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>

Politics

Trump's Hush Money Conviction Upheld Amid Presidential Immunity Controversy — Alvin Bragg Says 'Overwhelming' Evidence Of Guilt

Jim Cramer cautioned investors about Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) on Monday, predicting a potential market correction for the semiconductor giant that has seen its value surge 174% this year.



What Happened: &#8220;Still no crescendo moment in Nvidia. It will happen, just not yet&#8230;.the reversal will be vicious though&#8230;.and fast,&#8221; CNBC&#8217;s Cramer wrote on X, formerly Twitter, as the stock declined 1.68% to close at $132.00.



<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">Still no crescendo moment in Nvidia. It will happen, just not yet&#8230;.the reversal will be vicious though&#8230;.and fast&mdash; Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1868721912303829094?ref_src=twsrc%5Etfw">December 16, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The warning comes as Nvidia faces heightened scrutiny in China, where authorities launched an antitrust investigation last week into the company&#8217;s 2020 acquisition of Mellanox Technologies. 



The probe examines <a href="https://www.benzinga.com/news/legal/24/12/42404352/nvidia-china-antitrust-probe-may-remain-unsolved-in-near-term-says-top-analyst-investors-should-be-prepared-for-increased-scrutiny">potential anti-competitive practices</a>, including whether Nvidia limits competition by bundling its AI chips with Mellanox&#8217;s NVLink technology.



See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42519371/broadcom-mounts-strongest-2-day-rally-since-ipo-leveraged-etf-nearly-doubles-in-2-sessions">Broadcom Mounts Strongest 2-Day Rally Since IPO: Leveraged ETF Nearly Doubles In 2 Sessions</a>



Why It Matters: TF Securities analyst Ming-Chi Kuo expects the investigation to remain unresolved in the near term, drawing parallels to Qualcomm Inc.&#8216;s 15-month <a href="https://www.benzinga.com/news/legal/24/12/42404352/nvidia-china-antitrust-probe-may-remain-unsolved-in-near-term-says-top-analyst-investors-should-be-prepared-for-increased-scrutiny">antitrust case in China</a>. 



While China represents only 5% of Nvidia&#8217;s data center revenue, Kuo advised investors to prepare for increased regulatory scrutiny of Nvidia&#8217;s practices, including its CUDA platform.



The investigation emerges as Nvidia maintains its dominance in the AI chip market, recently reporting third-quarter revenue of $35.1 billion, a 94% year-over-year increase. With a market capitalization of $3.21 trillion, Nvidia stands as one of the world&#8217;s most valuable companies, trading at a price-to-earnings ratio of 53.



Wall Street maintains a bullish outlook, with 40 analysts setting an average price target of $170.56. Rosenblatt Securities leads with the highest target of $220, while New Street Research projects a low of $120, according to <a href="https://www.benzinga.com/quote/NVDA/analyst-ratings">data from Benzinga Pro</a>.



<figure class="wp-block-image aligncenter size-large is-resized"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16202324/Screenshot-2024-12-17-at-6.52.32%E2%80%AFAM-1024x374.png" alt="" class="wp-image-694905" style="width:808px;height:auto"/></figure>



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42516901/bitcoin-hits-new-all-time-above-107000-ethereum-xrp-dogecoin-follow-higher-as-traders-target-115000-and-more">Bitcoin Hits New All-Time High Above $107,000, Ethereum, XRP, Dogecoin Make Gains As Traders Target $115,000 And More</a></li>
</ul>



Image Via Shutterstock 



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

Jim Cramer Warns Nvidia's 'Vicious' And 'Fast' Reversal Is Coming Amid 174% Surge This Year And China Antitrust Probe

Broadcom Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) stock price soared 38% over two sessions — its strongest two-day rally since <a href="https://www.benzinga.com/money/what-does-ipo-mean">going public in 2009</a>.



A blowout earnings report, bullish analyst updates, and promising artificial intelligence (AI) developments vaulted the semiconductor company into the elite <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42488220/broadcom-hits-1-trillion-milestone-the-next-magnificent-tech-giant">trillion-dollar market-cap club.</a>



The impressive surge began on Friday, following <a href="https://www.benzinga.com/24/12/42480891/broadcom-reports-four-fold-increase-in-ai-chips-revenue-expects-continued-momentum-boasts-of-cost-reduction-in-vmware-after-acquisition-heres-what-happened">Broadcom&#8217;s latest earnings announcement</a>, with shares climbing 24.4% in a single day. The momentum continued into Monday, where the stock advanced another 11%, pushing Broadcom&#8217;s market cap from $850 billion to $1.17 trillion in just 48 hours. 



This achievement places the company alongside tech giants such as Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>), NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</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>), Amazon 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>).



<h3 class="wp-block-heading">Earnings and AI Tailwinds Fuel Optimism</h3>



Broadcom released earnings after the market closed last Thursday. Investors felt encouraged by the company's robust revenue growth due to surging demand for AI-related chips.



The semiconductor manufacturer also revealed its ongoing collaboration with Apple to develop a custom AI chip, underscoring its expanding role in enabling next-generation AI technology.



Adding to the bullish sentiment, Goldman Sachs analyst Toshiya Hari reiterated on Monday a "Buy" rating for Broadcom and raised the stock's 12-month price target from $190 to $240, labeling the company as a "key enabler of generative AI."



<h3 class="wp-block-heading">Leveraged ETF Gains: Direxion AVL Nearly Doubles</h3>



Broadcom&#8217;s stock surge also had a dramatic impact on the Direxion Daily Broadcom Bull 2X Shares ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVL#NASDAQ">AVL</a>), which offers leveraged exposure to the company's daily stock performance.



In just two sessions, the ETF skyrocketed 84%, reflecting Broadcom&#8217;s remarkable gains. 



The leveraged ETF&#8217;s performance highlights the outsized potential returns — and risks — of these high-magnitude investment vehicles during periods of strong market momentum.



<h3 class="wp-block-heading">Catch Up On Benzinga's Latest Broadcom Updates:</h3>



<ul>
<li><a href="https://www.benzinga.com/insights/options/24/12/42516743/broadcoms-options-a-look-at-what-the-big-money-is-thinking">Broadcom&#8217;s Options: A Look at What the Big Money is Thinking</a></li>



<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42515044/broadcom-tesla-propel-nasdaq-100-gains-bitcoin-hits-107000-fueling-crypto-stocks-rally-whats-driving-markets-monday">Broadcom, Tesla Propel Nasdaq 100 Gains, Bitcoin Hits $107,000, Fuels Crypto Stocks Rally: What&#8217;s Driving Markets Monday?</a></li>



<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42489281/broadcoms-ai-chip-leadership-puts-pressure-on-nvidia-and-marvell-analysts-say">Broadcom&#8217;s AI Chip Leadership Puts Pressure on Nvidia and Marvell, Analysts Say</a></li>



<li><a href="https://www.benzinga.com/24/12/42487128/apples-2025-chip-transition-targets-new-wireless-edge-broadcom-to-retain-key-role">Apple&#8217;s 2025 Chip Transition Targets New Wireless Edge, Broadcom To Retain Key Role</a></li>
</ul>



Image: Shutterstock

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GOOGL

MSFT

Broadcom Mounts Strongest 2-Day Rally Since IPO: Leveraged ETF Nearly Doubles In 2 Sessions

Shares of CVS Health Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>),&nbsp;Cigna Group&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) and&nbsp;UnitedHealth Group Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) are falling Monday afternoon after President-elect Donald Trump said he plans to target Pharmacy-benefit managers (PBMs) <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42496937/analyst-bitcoins-potential-surge-to-800000-in-2025-tied-to-trumps-policies-says-this-analyst">during his administration</a>.



What Happened: According to a Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-12-16/trump-middleman-remark-sinks-cvs-unitedhealth-cigna-shares?srnd=homepage-americas&amp;sref=TBDibEcD">report</a>, Trump on Monday sent shares of PBMs lower when he said he plans to &#8220;knock out&#8221; PBMs, or so-called drug middlemen, from the industry.



CVS Health&#8217;s Caremark,&nbsp;Cigna&#8217;s Express Scripts and&nbsp;UnitedHealth&#8217;s OptumRx are the three largest PBMs. The companies have faced repeated criticism for driving up the prices of drugs.



"We have a thing called the middleman," Trump reportedly told reporters on Monday.



"You know the middleman, right? The horrible middleman that makes more money frankly than the drug companies, and they don't do anything except they're a middleman," he said. "We're going to knock out the middleman."



The news comes after Sen.&nbsp;Elizabeth Warren&nbsp;(D.-Mass.) and&nbsp;Sen. Josh Hawley&nbsp;(R.-Mo.) unveiled a new bipartisan Senate bill last week that would require the companies that own PBMs to divest those businesses within three years.



&#8220;PBMs have manipulated the market to enrich themselves — hiking up drug costs, cheating employers, and driving small pharmacies out of business,&#8221; Warren said.



See Also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42515044/broadcom-tesla-propel-nasdaq-100-gains-bitcoin-hits-107000-fueling-crypto-stocks-rally-whats-driving-markets-monday">Broadcom, Tesla Propel Nasdaq 100 Gains, Bitcoin Hits $107,000, Fuels Crypto Stocks Rally: What&#8217;s Driving Markets Monday?</a>



The proposed legislation is not expected to gain traction in Congress until next year, but comments from Trump on Monday suggest the problems with the drug industry could be addressed sooner rather than later.



The role of PBMs in the healthcare industry has been a heightened focus in recent weeks following the murder&nbsp;of&nbsp;UnitedHealthcare&nbsp;CEO&nbsp;Brian Thompson. <a href="https://www.benzinga.com/24/12/42365853/unitedhealthcare-faces-tough-questions-following-insurance-business-ceos-tragic-death" target="_blank" rel="noreferrer noopener">Several dissatisfied patients</a>&nbsp;have expressed dissatisfaction with PBMs since. Luigi Mangione&nbsp;<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" target="_blank" rel="noreferrer noopener">has been charged</a>&nbsp;with killing Thompson.



CVS, CI, UNH Price Action: At publication time, CVS shares were down 5.61% at $46.60, Cigna Group shares were down 3.05% at $272.76 and UnitedHealth shares were down 4.22% at $498.50, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Photo: Wikimedia Commons.

CVS, Cigna, UnitedHealth Shares Slide As Trump Targets Drug 'Middleman'

Bitcoin hit a new all-time high of $107,822 according to Coingecko data on Monday, as bullish hopes are fueled by President-elect Donald Trump reportedly contemplating an executive order to <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42505162/trump-reportedly-considering-executive-order-to-establish-strategic-bitcoin-reserve">establish a Strategic Bitcoin Reserve</a>.



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Price&nbsp;&nbsp;&nbsp;</td><td>Gains +/-</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td> $106,240.24</td><td>+3%</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>)</td><td> $4,052.99</td><td>+4%</td></tr><tr><td>Solana (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>)</td><td> $217.53</td><td>-1.5%</td></tr><tr><td>XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>)</td><td> $2.48</td><td>&nbsp;+2.8%</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)</td><td> $0.4049</td><td>+0.8%</td></tr><tr><td>Shiba Inu (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/shib/usd">SHIB</a>)</td><td> $0.00002744</td><td>-0.7%</td></tr></tbody></table></figure>



Notable Statistics:



<ul>
<li>IntoTheBlock data shows large transaction volume increasing by 2.9% and daily active addresses falling by 0.4%. Transactions greater than $100,000 remained relatively flat. Exchanges netflows are up by 255.2%.</li>



<li>Coinglass data reports 132,609 traders were liquidated in the past 24 hours for $492.98 million.</li>
</ul>



Notable Developments:



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42509614/microstrategy-expands-bitcoin-holdings-by-15350-btc-worth-15-billion-after-joining-nasdaq-100">MicroStrategy Expands Bitcoin Holdings By 15,350 BTC Worth $1.5 Billion After Joining Nasdaq 100</a></li>



<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42515773/ethereum-price-soars-past-4000-what-is-going-on-with-eth">Ethereum Price Soars Past $4,000: What Is Going On With ETH?</a></li>



<li><a href="https://www.benzinga.com/trading-ideas/movers/24/12/42500884/trump-backed-world-liberty-financials-purchases-trigger-strong-rally-in-these-defi-tokens">Trump-Backed World Liberty Financial&#8217;s Purchases Trigger Strong Rally In These DeFi Tokens</a></li>



<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42507864/bitcoin-etfs-surge-as-king-crypto-hits-106000">Bitcoin ETFs Surge As King Crypto Hits $106,000</a></li>
</ul>



Top Gainers:



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Price&nbsp;&nbsp;&nbsp;</td><td>Gains +/-</td></tr><tr><td>Virtuals Protocol (CRYPTO: VIRTUAL)</td><td>&nbsp;$3.09</td><td>+17.6%</td></tr><tr><td>Bitget Token (CRYPTO: BGB)</td><td>&nbsp;$3.44</td><td>+13.2%</td></tr><tr><td>Ondo (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">ONDO</a>)</td><td>&nbsp;$2.06</td><td>+10.9%</td></tr></tbody></table></figure>



Trader Notes: Crypto Jelle highlights that Bitcoin is following the price action from Q4 in 2023. 



He predicts Bitcoin could hit $115,000 before settling into a new range if the pattern persists.



<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/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> is still following the Q4-2023 fractal to the tee &#x1f440; Should push to ~115k before a new range is established, if this keeps playing out the same &#x1f91e;&#x1f3fb; <a href="https://t.co/D8nsc5AbpA">pic.twitter.com/D8nsc5AbpA</a>&mdash; Jelle (@CryptoJelleNL) <a href="https://twitter.com/CryptoJelleNL/status/1868723413306819056?ref_src=twsrc%5Etfw">December 16, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Stockmoney Lizards acknowledges Bitcoin&#8217;s current all-time high but argues, &#8220;This is not the top.&#8221; Citing the Satoshimeter at just 9, he <a href="https://x.com/StockmoneyL/status/1868745911842881844">believes </a>significant upside potential remains. Justin Bennett envisions the total cryptocurrency market capitalization climbing to $4.2–$4.3 trillion by year-end. 



He <a href="https://x.com/JustinBennettFX/status/1868723310814756894">forecasts</a> Bitcoin to surge to $120,000–$125,000, with Ethereum surpassing $4,800. Bennett also warns that such highs might set the stage for a correction in early 2025.



Gert van Lagen, a technical analyst, observes that Bitcoin&#8217;s current trajectory aligns with expectations, surpassing the gravity of its re-accumulation pattern. 



With an estimated 2.5 months before a potential recession, he predicts Bitcoin could aim for $200,000 soon.



<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">$BTC</a> [1W] &#8211; Bitcoin is blowing off as expected with Long-term holders reaching Euphoria. The gravity of the Re-accumulation pattern has proven to be transcended. With an estimated 2.5 months before a recession begins to take hold, <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> is on track to surpass $200k soon. <a href="https://t.co/qMGFvnWxbU">pic.twitter.com/qMGFvnWxbU</a>&mdash; Gert van Lagen (@GertvanLagen) <a href="https://twitter.com/GertvanLagen/status/1868736052204388594?ref_src=twsrc%5Etfw">December 16, 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/markets/cryptocurrency/24/12/42507640/bitcoin-taps-106000-consolidates-at-104000-why-is-btc-going-up">Bitcoin Taps $106,000, Consolidates At $104,000: Why Is BTC Going Up?</a></li>
</ul>



Image: Shutterstock

$ONDO

$SHIB

$SOL

$XRP

Bitcoin Hits New All-Time High Above $107,000, Ethereum, XRP, Dogecoin Make Gains As Traders Target $115,000 And More

Japanese company SoftBank (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>)(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) announced a $100 billion investment and 100,000 jobs created in a commitment to the U.S. on Monday,<a href="https://www.benzinga.com/news/24/12/42505666/softbanks-masayoshi-son-to-reportedly-announce-100b-us-investment-during-meeting-with-trump"> confirming earlier reports</a>.



What Happened: SoftBank CEO Masayoshi Son made the announcement alongside President-elect Donald Trump at Mar-a-Lago Monday, showing his confidence in the economic health of the U.S. since <a href="https://www.benzinga.com/politics/24/12/42511472/trump-hits-7-year-high-in-favorability-ratings-how-republicans-democrats-men-and-women-view-president-elect">Trump won the 2024 election.</a>



"My confidence level to the economy of the United States has tremendously increased with his victory," Son said, acknowledging Trump.



Son said he is excited to commit $100 billion and 100,000 jobs to the U.S. as a sign of confidence in what's to come.



"This is double of last time as President Trump said, because I say President Trump is a double down president. I'm going to have to double down."



Son said business is important and technology is important. The CEO also expressed confidence Trump can bring "the world into peace again."



"That's my additional hope."



Trump praised Son as one of the top voices and figures in emerging technology, calling him a "brilliant guy."



"This historic investment is a monumental demonstration of confidence in America's future, and it will help ensure that artificial intelligence, emerging technologies and other industries of tomorrow are built, created and grown right here in the U.S.A." Trump said.



Trump reminded people that SoftBank committed to invest $50 billion after the 2016 election and said that it kept that promise.



After Son spoke, Trump asked the SoftBank CEO if he would make it $200 billion, putting him on the spot for a larger commitment.



Son said his promise is for $100 billion.



"I will try to make it happen. He is a great negotiator," Son said.



Read Also: <a href="https://www.benzinga.com/news/global/24/11/41929194/nvidia-and-softbank-to-build-japans-top-ai-supercomputer-on-blackwell-platform-jensen-huang-says-tokyo-is-leaping-into-the-ai-industrial-revolution">Nvidia And SoftBank To Build Japan&#8217;s Top AI Supercomputer On Blackwell Platform — Jensen Huang Says Tokyo Is &#8216;Leaping Into The AI Industrial Revolution&#8217;</a>



Why It's Important: The $100 billion and jobs commitments will come over the next four years and could show a strengthened relationship between one of the largest Asian investment companies and the U.S.



Softbank is the owner of the Softbank Vision Fund, one of the largest technology-focused investment funds worldwide. The company is also a key investor in Arm Holdings and OpenAI.



"You'll have my support. You'll have our country's support," Trump said to Son.



The announcement could show strengthened relationships between the U.S. and Japan, which comes as the president-elect has<a href="https://www.benzinga.com/markets/24/11/42028954/peter-thiel-says-trumps-60-china-tariff-would-be-very-very-bad-for-beijing-heres-whats-at-stake"> threatened higher tariffs</a> on goods exported from China.



Since winning the 2024 election, business leaders from the U.S. and other countries flocked to gain support from Trump and push for future growth.



Jeff Bezos, Mark Zuckerberg and Sam Altman have<a href="https://www.benzinga.com/news/management/24/12/42485193/sam-altman-to-donate-1m-to-trumps-inauguration-fund-following-zuckerberg-bezos-eager-to-support"> each pledged $1 million</a> to Trump's inauguration fund through their companies or personal wealth. Apple CEO Tim Cook also <a href="https://www.benzinga.com/24/12/42495714/tim-cook-dines-with-donald-trump-at-mar-a-lago-to-strengthen-apples-position-as-zuckerberg-and-pichai-repair-ties-and-jeff-bezos-prepares-for-his-turn-report">recently met with</a> Trump in a potential show of support from the technology giant.



The world's richest man Elon Musk has been a supporter of Trump and is also set to have a role in the new White House administration as the co-leader of the Department of Government Efficiency. Musk's influence on Trump could lead to new government regulations that could benefit Tesla and SpaceX and help add to his wealth.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/11/42227972/softbank-secures-bigger-openai-stake-with-1-5b-employee-share-buyout-report">SoftBank Secures Bigger OpenAI Stake With $1.5B Employee Share Buyout: Report</a></li>
</ul>



Photo: NP27 on Shutterstock

Global

SFTBF

SFTBY

Trump Says SoftBank's $100B Commitment To US Is 'Monumental Demonstration Of Confidence In America's Future'

The Federal Reserve is widely expected to announce a 25-basis-point rate cut on Dec. 18, marking its third consecutive reduction after slashing rates by 50 basis points in September <a href="https://www.benzinga.com/topic/interest-rates">and by 25 in November.</a>



Markets have fully priced in this move, assigning nearly a 100% probability, as per CME FedWatch tool. 



But the real story isn't just this rate decision — it's the signals embedded in the Fed's updated Summary of Economic Projections (SEP) and Chair Jerome Powell&#8216;s press remarks that could shape 2025's monetary policy trajectory.



Traders should brace for potential surprises.



<h1 class="wp-block-heading">Inflation's Resurgence Clouds The Fed's Interest-Rate Path</h1>



Recent data have reignited inflation concerns, complicating the Fed's roadmap for future cuts. 



November&#8217;s Consumer Price Index (CPI) rose 2.7% year-over-year, notching its second consecutive increase. Meanwhile, the Producer Price Index (PPI) surged to 3% annually — the fastest since February 2023.



This inflation uptick has already pushed traders to reconsider the pace of cuts next year, with Fed futures currently pricing a 50% chance of another reduction by March 2025, down from higher odds just weeks ago.



The Fed's last SEP, released in September, projected that headline Personal Consumption Expenditure (PCE) inflation would fall to 2.1% by 2025, with Core PCE inflation — a preferred measure — declining from 2.6% in 2024 to 2.2%.



Yet, an upward revision in December could signal the Fed's discomfort with recent price trends, hinting at a more prolonged restrictive stance.



<h1 class="wp-block-heading">Dot Plot Drama: Slower Cuts Ahead?</h1>



The infamous dot plot — showing individual policymakers' views on the future path of rates — will likely take center stage.



In September, the median dot forecasted the fed funds rate down from 4.4% in 2024 to 3.4% by the end of 2025, suggesting 100 basis points of cuts over the next year. 



But if the December update scales back the expected pace of cuts, it could deliver a hawkish jolt to markets.



Goldman Sachs economist David Mericle commented, "We expect the FOMC to signal a slower pace of rate cuts moving forward. Our revised forecast eliminates a January cut in 2025 but maintains cuts in March, June, and September, now projecting a slightly higher terminal rate of 3.5%-3.75%."



&#8220;The FOMC will likely signal that rate cuts will continue in 2025, but at a slower pace than between September and December,&#8221; Comerica Economics stated. 



&#8220;Given current growth and inflation dynamics, we expect that the Fed's rate cuts will then be on pause until March at the earliest,&#8221; Joseph Brusuelas, economist at RSM US LLP, said. 



 According to Brusuelas, the dot plot &#8220;will show a median estimate of next year's federal funds rate of 3.625%, which reflects a 25 basis-point increase from the September forecast.&#8221;



<h1 class="wp-block-heading">Growth And Jobs: What's The Fed Signaling?</h1>



Economic growth and labor market projections could also hold critical clues. 



In September, the Fed anticipated GDP growth of 2% annually through 2025 and 2026, alongside an unemployment rate steady at 4.4% for 2025 and edging down to 4.3% in 2026. If these projections hold steady, it suggests the Fed remains cautiously optimistic about the economy&#8217;s resilience. 



Yet, any significant revisions — particularly on jobs — could heighten market volatility during the final trading days of the year, just as the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) battles for its strongest annual gains since 1998.



&#8220;While everyone embraces the [stock market] bubble, I suggest buying a pacemaker for Christmas as a hedge,&#8221; David Rosenberg, president of Rosenberg Research &amp; Associates Inc., stated on social media X. 



Read Now: 



<ul>
<li><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">US Services Sector Booms At Fastest Pace Since October 2021, Business Activity Leaps To Over Two-Year Highs</a></li>
</ul>



Photo: Shutterstock

Macro Economic Events

Econ #s

Federal Reserve

Fed Poised To Cut Interest Rates By 0.25% This Week: Here's Why Your Focus Should Shift To Other Signals

Tech stocks extended their rally to new heights on Monday, with the Nasdaq 100 index climbing over 1% to surpass 22,000 points, fueled by robust gains among key <a href="https://www.benzinga.com/tech">components in the index.</a>



Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) led the charge, soaring over 8% after receiving bullish price-target updates from analysts. The company's AI-driven growth potential gained further traction on Friday following its announcement of a collaboration with Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) to produce a cutting-edge AI chip.



Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) also rallied, jumping more than 5%, pushing its post-election gains to 85%, buoyed by positive analyst sentiment. Wedbush Securities described Tesla as a &#8220;game-changer&#8221; in AI and autonomous advancements under Trump's administration, adding to the bullish outlook.



Among other indices, the Russell 2000 rose 1%, while the S&amp;P 500 edged up 0.4%. The Dow Jones Industrial Average, however, dipped 0.2%, weighed down by losses in the energy and healthcare sectors.



On the economic front, private-sector surveys showed a stronger-than-expected rebound in December activity. The services sector Purchasing Managers&#8217; Index (PMI) surged to 58.5, the highest reading since October 2021. Meanwhile, the Composite PMI climbed to 56.6, its best level since April 2022, as robust growth in services offset continued weakness in manufacturing.



Crypto-related assets gained fresh bullish momentum, driven by speculation about the U.S. government creating a Bitcoin Strategic Reserve fund. Meanwhile, MicroStrategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) will be added to the Nasdaq 100 Index on Dec. 23, further boosting sentiment.



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) reached $107,000, marking a year-to-date gain of 153%. MicroStrategy shares rose 5.8%, while other crypto-linked stocks, such as MARA Digital Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MARA#NASDAQ">MARA</a>), Riot Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIOT#NASDAQ">RIOT</a>), and Coinbase Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), surged 11.1%, 9.2%, and 4.5%, respectively.



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



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Major Indices </td><td>Price</td><td>1-day %</td></tr><tr><td>Nasdaq 100</td><td>22,043.82</td><td>1.2%</td></tr><tr><td>Russell 2000</td><td>2,369.39</td><td>1.0%</td></tr><tr><td>S&amp;P 500</td><td>6,076.94</td><td>0.4%</td></tr><tr><td>Dow Jones</td><td>43,750.42</td><td>-0.2%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 1:15 p.m. ET</figcaption></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>) rose 0.5% to $607.34.</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 0.2% to $438.86.</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>) rose 1.4% to $537.94.</li>



<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 1% to $235.13.</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 1.2%; the&nbsp;Energy Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) lagged, down 1.8%.</li>
</ul>



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



<ul>
<li>Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) rose 7.1%, reflecting bullish investor sentiment ahead of its earnings report on Wednesday after the close.</li>



<li>Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) rose by 4.7%, building up momentum after last week&#8217;s 8.7% surge following the announcement of the quantum computer launch. </li>



<li>Shares of of natural gas companies fell amid prospects for less colder weather in the upcoming weeks. New Fortress Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFE#NASDAQ">NFE</a>) led industry declines, down 7%. </li>
</ul>



Read Next:



<ul>
<li><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">Fed Poised To Cut Interest Rates By 0.25% This Week: Here&#8217;s Why Your Focus Should Shift To Other Signals</a></li>
</ul>



Photo: Shutterstock

Mid Cap

Sector ETFs

Broad U.S. Equity ETFs

Small Cap

COIN

MARA

MSTR

RIOT

Broadcom, Tesla Propel Nasdaq 100 Gains, Bitcoin Hits $107,000, Fuels Crypto Stocks Rally: What's Driving Markets Monday?

Elon Musk&#8216;s Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) has surged over 60% since the 2024 election results were announced, making it <a href="https://www.benzinga.com/markets/24/11/41890944/tesla-the-most-undervalued-ai-name-in-the-market-in-our-view-says-dan-ives-trumps-win-a-game-changer">nearly five times more expensive</a> than the industry average. Additionally, its technical indicators flash overbought warnings.



Despite this, Wedbush&#8217;s Dan Ives has <a href="https://www.benzinga.com/24/12/42502841/wedbush-analyst-raises-teslas-price-target-to-515">increased his price target </a>on the stock to $515 apiece, citing optimism around a potential &#8220;game changer&#8221; under a Trump administration.



What Happened: Tesla shares are trading at a price nearly 126 times over its 2025 earnings, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data. At the same time, the average forward price-to-earnings of its peers stand at 25.75 times, implying that Tesla is over five times more expensive than its industry&#8217;s average.



When compared with other Magnificent Seven stocks and Broadcom, Tesla shares are the most expensive and it has the highest ratio of forward price-to-earnings.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Stocks </td><td>Forward P/E</td><td>Industry Average</td></tr><tr><td>Tesla </td><td>126.582</td><td>25.75</td></tr><tr><td>Apple </td><td>33.333 </td><td>20.23</td></tr><tr><td>Alphabet </td><td>21.552 </td><td>125.77</td></tr><tr><td>Meta </td><td>24.450 </td><td>125.77</td></tr><tr><td>Amazon </td><td>36.630 </td><td>32.14</td></tr><tr><td>Nvidia </td><td>31.546 </td><td>37.03</td></tr><tr><td>Broadcom </td><td>36.765 </td><td>37.03</td></tr><tr><td>Microsoft </td><td>34.014</td><td>81.74</td></tr></tbody></table><figcaption class="wp-element-caption">&#8211;<a href="https://pro.benzinga.com/dashboard">Benzinga Pro Data</a></figcaption></figure>



See Also: <a href="https://www.benzinga.com/markets/commodities/24/12/42502069/gold-poised-for-its-best-year-in-a-decade-while-bitcoin-surges-analysts-eye-2025-as-a-golden-era-for-precious-metal-amid-michael-saylors-push-for-btc-as-a-reserve-asset">Gold Poised For Its Best Year In A Decade While Bitcoin Surges: Analysts Eye 2025 As A Golden Era For Precious Metal Amid Michael Saylor&#8217;s Push For BTC As A Reserve Asset</a>



Why It Matters: Shares of Tesla have risen over 60% since Nov. 6, outpacing gains in the Nasdaq 100 index, which advanced by 7% in the same period.



On a year-to-date basis, TSLA is up approximately 84%. Thus, its post-election trajectory has significantly altered the narrative, converting a relatively subdued performance into a highly successful year for Tesla investors.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Performance </td><td>Nasdaq 100 </td><td>Tesla Stock</td></tr><tr><td>Since Nov. 6</td><td>7%</td><td>60%</td></tr><tr><td>Year To Date </td><td>33%</td><td>84%</td></tr><tr><td>Five Year </td><td>153%</td><td>1597%</td></tr></tbody></table><figcaption class="wp-element-caption">&#8211;<a href="https://pro.benzinga.com/dashboard">Benzinga Pro Data</a></figcaption></figure>



From a technical perspective, the analysis of daily moving averages and its relative strength indicate that the stock price is high and overbought.



TSLA closed at $436.23 on Friday. This was below above the eight and 20-day simple moving averages, of $408.55 and $370.43, respectively. As per <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>, its current stock price is also much higher than the 50 and 200-day moving average prices at $303.86 and $225.59, respectively.



The relative strength index of 79.17 also suggests the stock is overbought. These combined factors usually mean the stock may be overvalued, and there could be a potential for a price correction or a pullback.



<figure class="wp-block-image size-large"><a href="https://pro.benzinga.com/dashboard"><img loading="lazy" decoding="async" width="1024" height="576" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16081927/Tesla-Tech-Chart-1024x576.png" alt="" class="wp-image-693821" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16081927/Tesla-Tech-Chart-1024x576.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16081927/Tesla-Tech-Chart-300x169.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16081927/Tesla-Tech-Chart-768x432.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16081927/Tesla-Tech-Chart-1536x864.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16081927/Tesla-Tech-Chart.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



Benzinga&#8217;s <a href="https://www.benzinga.com/quote/TSLA" target="_blank" rel="noopener">technical analysis scorecard</a> scores the company at 66 points out of 100.



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/quote/TSLA"><img loading="lazy" decoding="async" width="495" height="138" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16082138/tsla-ta.png" alt="" class="wp-image-693828" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16082138/tsla-ta.png 495w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16082138/tsla-ta-300x84.png 300w" sizes="(max-width: 495px) 100vw, 495px" /></a></figure>



What Are Analysts Saying: Ives raised his Tesla price target to $515, citing a potential &#8220;game changer&#8221; under a Trump presidency. He believes that the Trump administration will favor Tesla&#8217;s AI and autonomous driving initiatives while hindering smaller EV competitors. Ives sees a $2 trillion market cap for Tesla by 2025, excluding potential value from its Optimus robot. This comes amid reports of the Trump team seeking to relax regulations on autonomous vehicles, a move Tesla has advocated for.



<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 believe Tesla could reach a $2 trillion market cap by the end of 2025 as the company&#39;s autonomous vision starts to take shape. Importantly, our price target conservatively assumes no value today for Optimus which could be a major upside catalyst for the Tesla story &#x1f525;&#x1f3c6;&#x1f402;&#x1f37f;&#x1f447; <a href="https://t.co/IBxilcLgC3">https://t.co/IBxilcLgC3</a>&mdash; Dan Ives (@DivesTech) <a href="https://twitter.com/DivesTech/status/1868414138105618765?ref_src=twsrc%5Etfw">December 15, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Ives has always been bullish on the Elon Musk-led company. &#8220;Tesla is the most <a href="https://www.benzinga.com/markets/24/11/41890944/tesla-the-most-undervalued-ai-name-in-the-market-in-our-view-says-dan-ives-trumps-win-a-game-changer">undervalued AI name</a> in the market in our view,&#8221; said Ives in an <a href="https://x.com/DivesTech/status/1856131332327518236">X post</a> dated Nov. 11. Tesla has a consensus "buy" rating based on the ratings of 33 <a href="https://www.benzinga.com/quote/TSLA/analyst-ratings">analysts tracked by Benzinga</a>.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="472" height="366" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16082455/Tesla-ANR.png" alt="" class="wp-image-693840" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16082455/Tesla-ANR.png 472w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16082455/Tesla-ANR-300x233.png 300w" sizes="(max-width: 472px) 100vw, 472px" /></figure>



Price Action: Shares of Tesla were up 5.4% at $459.81 at the time of publication Monday, while Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) was up 1.1% at $536.78.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/24/12/42495307/charlie-munger-identified-this-stock-30-years-ago-after-warren-buffett-passed-on-it-heres-how-it-is-doing-as-it-accomplishes-four-milestones-in-its-current-quarter">Charlie Munger Identified This Stock 30 Years Ago After Warren Buffett Passed On It: Here&#8217;s How It Is Doing Now</a></li>
</ul>



Photo: Shutterstock

Price Target

Analyst Ratings

Elon Musk's Tesla Nearly 5 Times More Expensive Than Industry Average: Stock Surges Over 60% Since Election

U.S. private sector activity closed out 2024 on a strong note, driven by robust growth <a href="https://www.benzinga.com/topic/services">in the services sector</a>. 



The Services PMI surged to 58.5 in December, beating expectations of 55.8 and up from November&#8217;s 56.1 reading, according to data from S&amp;P Global. This marks the sector&#8217;s fastest expansion since October 2021 and reflects rising consumer <a href="https://www.benzinga.com/news/econ-s">demand and economic resilience.</a>



In stark contrast, the manufacturing sector contracted for a sixth consecutive month. Its PMI slipped to 48.5 from November's 49.7. This reading missed forecasts of 49.8, highlighting persistent challenges for goods-producing businesses. Higher raw material costs, inflation concerns, and tariff-related uncertainties weighed on manufacturers&#8217; sentiment.



Despite the manufacturing slowdown, the broader economy gained momentum. The Composite PMI, which measures activity across both sectors, climbed to 56.6, the sharpest expansion rate in nearly three years. Optimism among firms about future output also soared to its highest level since mid-2022, with employment ticking upward for the first time in five months.



Employment also edged higher for the first time in five months, S&amp;P Global highlighted. Firms expanded workforce numbers amid the brighter outlook



Chris Williamson, chief business economist at S&amp;P Global, noted: "Business is booming in the U.S. services economy, where output is growing at the sharpest rate since the reopening of the economy from COVID lockdowns in 2021."



<h3 class="wp-block-heading">Market Reaction: Stocks Surge, Dollar Steady</h3>



Wall Street welcomed the robust services data, with the S&amp;P 500 — tracked by the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — gaining 0.4% and the Nasdaq 100 (via Invesco QQQ ETF) adding 0.9% to hit fresh all-time highs. 



Treasury yields remained flat, with the 10-year yield steady at 4.38%, while the dollar, as measured by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), traded sideways.



The divergence between a thriving services sector and struggling manufacturing highlights the evolving dynamics of the U.S. economy heading into 2025. While inflationary pressures remain a concern in the goods-producing sector, the cooling of cost growth in services offers a glimmer of hope for easing overall inflation.



Now Read:



<ul>
<li><a href="https://www.benzinga.com/24/12/42508408/what-is-going-on-with-alibaba-jd-li-auto-xpeng-stocks-on-monday">US-Listed Chinese Stocks React To Underwhelming Consumption Data</a></li>
</ul>



Image: Shutterstock

US Services Sector Booms At Fastest Pace Since October 2021, Business Activity Leaps To Over Two-Year Highs

Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) stock has more upside thanks to live events, an analyst says ahead of the company's highly anticipated <a href="https://www.benzinga.com/general/sports/24/12/42354185/nfl-games-set-thanksgiving-day-records-why-this-is-good-and-bad-news-for-streaming-giant-netflix">NFL Christmas Day games.</a>



The Netflix Analyst: Oppenheimer analyst Jason Helfstein reiterated an Outperform rating on Netflix and raised the price target from $825 to $1,065.



Read Also: <a href="https://www.benzinga.com/general/sports/24/12/42492251/netflix-ceo-says-paul-tyson-fight-really-phenomenal-strong-demand-for-nfl-game-advertising">Netflix CEO Says Paul-Tyson Fight &#8216;Really Phenomenal,&#8217; Strong Demand For NFL Game Advertising</a>



The Analyst Takeaways: With a dominant position in the streaming market and monetization upside coming from live events, Helfstein sees more upside for Netflix ahead.



"NFLX remains the only investable mainstream media stock," Helfstein said in a new investor note.



Helfstein said Netflix's competition is "continuing to weaken," which could help Netflix with churn and driving down content costs.



"Near term, we expect positive commentary from NFL Christmas Day games similar to Paul/Tyson, driving sentiment into 4Q earnings."



With a bigger and better library, Netflix has been able to have lower churn than media peers, the analyst said. Netflix's churn of around 2% is much lower than the 6% across the industry, which has elevated from 4% in 2021 with more companies entering the streaming space.



An example of the churn the analyst illustrates is with NFL and Olympics content for Comcast Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>) and Paramount Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARAA#NASDAQ">PARAA</a>) led to growth in streaming subscribers, but also saw 2-month cancellation rates of 30% and 35% respectively.



"We think NFLX original content/library should drive stronger retention."



The Mike Tyson vs. Jake Paul boxing event was watched by 108 million households, which is the largest live event excluding Super Bowls since President Richard Nixon's resignation, according to the report.



While Netflix's Christmas Day NFL games won't break the boxing viewership, they could bring in $75 million in advertising revenue each for a total of $150 million, Helfstein estimates. The analyst calls the games a "free acquisition tool," based on the media reports Netflix paid $150 million to have the rights to the Christmas Day games.



"We now expect live events will drive stronger ad-tier growth, but expect significant advertiser demand once capabilities are built-out."



The analyst estimates Netflix has a $2.2 billion advertising opportunity annually for live events based on $223 million per live event and 10 events per year in the future.



"Therefore, on top of a strong subscriber acquisition tool, live event advertising could also become meaningfully incremental to NFLX."



Consolidation in the media space under a new White House administration could also be an item for Netflix investors to watch, Helfstein said. The impact would mean less competition for content and better margins for the company.



"We believe NFLX's dominance will continue, given its clear advantage in producing high-engagement content and monetizing that content more effectively than peers."



NFLX Price Action: Netflix stock is up 0.2% to $921.28 on Monday, versus a 52-week trading range of $461.86 to $941.75. Netflix stock is up 97% year-to-date in 2024.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/general/entertainment/24/12/42395178/golden-globes-2025-nominations-netflix-scores-nods-for-emilia-perez-and-squid-game-comcast-lands-4-wicked-noms">Golden Globes 2025 Nominations: Netflix Scores Nods For &#8216;Emilia Pérez&#8217; And &#8216;Squid Game&#8217;; Comcast Lands 4 &#8216;Wicked&#8217; Noms</a></li>
</ul>



Photo: Shutterstock

Entertainment

Reiteration

Sports

CMCSA

NFLX

PARA

PARAA

Netflix Analyst Say It's 'Only Investable' Media Stock, Projects $150 Million NFL Christmas Day Boost

&#8216;<a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40155839/bitcoin-development-company-microstrategy-plunges-almost-15-in-pre-market-whats-going-on">Bitcoin development company</a>&#8216; MicroStrategy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) on Monday announced it has acquired an additional 15,350 Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) for approximately $1.5 billion at an average price of $100,386 per coin.



The purchases took place between Dec. 9 and Dec. 15, <a href="https://assets.contentstack.io/v3/assets/bltb564490bc5201f31/bltde49d9b927f523d7/676023f4e462065ec33f0bfc/form-8-k_12-16-2024.pdf">according </a>to the company's SEC 8-K filing.



The latest acquisition aligns with MicroStrategy's aggressive Bitcoin-buying strategy, which has now pushed its total Bitcoin holdings to 439,000 BTC, <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42413650/michael-saylor-urges-us-to-ditch-gold-for-bitcoin-sell-the-past-own-the-future">valued at over $45 billion</a>.



The company's co-founder and executive chairman, Michael Saylor, confirmed that the average purchase price for its entire Bitcoin reserve, including fees and expenses, stands at $61,725 per Bitcoin, representing a total investment of $27.1 billion. 



This makes MicroStrategy the holder of approximately 2.1% of Bitcoin's total supply of 21 million coins.



To fund the new purchases, MicroStrategy sold an additional 3.88 million shares during the same period, generating $1.5 billion. 



Also Read: <a href="https://www.benzinga.com/top-stories/24/12/42508923/us-bitcoin-miners-hashrate-share-up-to-29-despite-declining-market-cap-says-jp-morgan">US Bitcoin Miners&#8217; Hashrate Share Up To 29% Despite Declining Market Cap, Says JP Morgan</a>



The share sale is part of the company's broader plan to raise $42 billion through equity and fixed-income offerings, enabling further Bitcoin acquisitions. 



As of Dec. 15, MicroStrategy has $7.65 billion in shares still available for sale.



The recent purchase marks MicroStrategy's sixth consecutive week of Bitcoin accumulation. 



Just last week, the company acquired 21,550 BTC for approximately $2.1 billion, at an average price of $98,783 per coin. 



Over the past six weeks alone, MicroStrategy has added $17.5 billion worth of Bitcoin—roughly 39% of its total $45 billion position.



Meanwhile, in a significant milestone, MicroStrategy is set to join the Nasdaq 100 index on Dec. 23, a move expected to further <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42433049/microstrategy-nasdaq-100-inclusion-on-the-horizon-could-spell-59-upside-says-bernstein">boost its stock's market liquidity</a>.



MicroStrategy's aggressive accumulation strategy has helped its market cap climb to $92 billion, trading at a premium relative to the net asset value of its Bitcoin holdings.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42487721/bitcoin-much-better-than-gold-as-reserve-asset-says-crypto-hedge-fund-founder">Bitcoin &#8216;Much Better Than Gold&#8217; As Reserve Asset, Says Crypto Hedge Fund Founder</a></li>
</ul>



Image: Shutterstock

MicroStrategy Expands Bitcoin Holdings By 15,350 BTC Worth $1.5 Billion After Joining Nasdaq 100

French equities dropped on Monday after Moody's downgraded France's credit rating to Aa3, citing worsening public <a href="https://www.benzinga.com/markets/eurozone">finances and political instability.</a>



The CAC 40 index, which tracks France's largest companies and is mirrored by the iShares MSCI France Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWQ#NYSE">EWQ</a>), fell 0.9% by 8:20 a.m. in New York, eyeing its third straight session in the red.



<h3 class="wp-block-heading">Moody's: France's Fiscal Challenges Are Escalating</h3>



In a report issued on Saturday, Moody's highlighted France's high debt burden, ongoing political instability, and diminished ability to consolidate public finances as key drivers for the downgrade.



See Also: <a href="https://www.benzinga.com/24/12/42504194/us-stocks-to-open-higher-ahead-of-feds-decision-this-week-analyst-says-santa-comes-later-in-december">US Stocks To Open Higher Ahead Of Fed&#8217;s Decision This Week: Analyst Says &#8216;Santa Comes Later In December&#8217;</a>



The outlook was revised from negative to stable, signaling that no further changes to the rating are imminent in the near term.



According to the credit rating agency, France&#8217;s public finances are expected to deteriorate over the next three years, with fiscal deficits likely to remain elevated due to political fragmentation. Moody&#8217;s forecasts that efforts to cut deficits will stall, diverging from its previous projections in October 2024.



&#8220;The decision to downgrade France&#8217;s ratings to Aa3 reflects our view that the country&#8217;s public finances will be substantially weakened over the coming years. This is because political fragmentation is more likely to impede meaningful fiscal consolidation,&#8221; the agency wrote in the report. &nbsp;



<h3 class="wp-block-heading">Political Turmoil Deepens Fiscal Concerns</h3>



The downgrade followed a historic no-confidence vote in the National Assembly, which led to the ousting of Prime Minister Michel Barnier and his minority government last week. 



Barnier's controversial 2025 austerity budget, which aimed to reduce the deficit to 5% of GDP, down from 6.1% in 2024, through €60 billion in spending cuts and tax hikes, faced fierce opposition from both left-wing and far-right lawmakers.



President Emmanuel Macron <a href="https://www.benzinga.com/news/global/24/12/42486154/macron-taps-bayrou-to-navigate-frances-fractured-politics-etfs-to-watch">responded by appointing</a> François Bayrou, a centrist and longtime ally, as the new prime minister—his fourth this year. Bayrou, known for his criticism of France's fiscal trajectory, acknowledged the &#8220;Himalayan&#8221; challenge of stabilizing public finances, signaling that austerity efforts may face further political resistance.



<h3 class="wp-block-heading">Key Risks to Watch Ahead</h3>



France&#8217;s downgrade to Aa3 introduces a fresh set of challenges that could ripple through its economy and beyond, starting with the threat of rising borrowing costs. 



Yields on 10-year French sovereign bonds are currently trading slightly above 3%, marking a spread of about 80 basis points versus German bunds. 



This increase in financing costs would add pressure to an already fragile fiscal position, further straining the government's ability to manage its towering public debt, which currently exceeds 112% of the gross domestic product.



The second, and perhaps more daunting, risk is continued political instability. With no parliamentary majority, Prime Minister François Bayrou will struggle to pass critical fiscal reforms, risking delays in deficit reduction.



The repercussions of France&#8217;s fiscal and political troubles could extend far beyond its borders, potentially triggering a European spillover effect. As the eurozone&#8217;s second-largest economy, France plays a pivotal role in the bloc's overall economic health.



On Monday the Euro Stoxx 600 index – as broadly tracked by the iShares MSCI Eurozone ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EZU#NYSE">EZU</a>) – slipped 0.4%.



Now Read:



<ul>
<li><a href="https://www.benzinga.com/24/12/42502841/wedbush-analyst-raises-teslas-price-target-to-515">Tech Bull Raises Tesla Price Target To $515, Predicts $1 Trillion AI Opportunity Under Trump White House: &#8216;Total Game Changer&#8217;</a></li>
</ul>



Image: Shutterstock

Eurozone

France's Credit Rating Downgrade Sparks Market Unease: 'Public Finances Will Be Materially Weaker'

U.S. listed Chinese stocks Alibaba Group Holding. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>), JD.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) and Baidu, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>), NIO Inc. (NYSE:&nbsp;NIO),&nbsp;Li Auto Inc.&nbsp;(NASDAQ:&nbsp;LI),&nbsp;and XPeng Inc.&nbsp;(NYSE:&nbsp;XPEV) stocks are trading lower on Monday.



The data shows that China&#8217;s economic growth slowed in November. Key indicators such as retail sales and property investment underperformed expectations.



The National Bureau of Statistics (NBS) reported a 3% year-on-year increase in November retail sales, down from October&#8217;s 4.8% growth and missing economists&#8217; estimates of 5.3%.



Also Read: <a target="_blank" href="https://www.benzinga.com/24/12/42468572/netflix-adjusts-parental-leave-policy-amid-cultural-and-financial-shifts" rel="noreferrer noopener">Netflix Adjusts Parental Leave Policy, But There Is A Catch</a>



Fixed-asset investment growth for the year through November rose by 3.3%, while property investment declined by 10.4%, reflecting persistent challenges in the real estate sector, SCMP <a target="_blank" href="https://www.scmp.com/economy/economic-indicators/article/3290925/chinas-retail-sales-november-miss-estimate-30" rel="noreferrer noopener">reports</a>.



NBS spokesperson Fu Linghui attributed the weaker retail sales to the early timing of China&#8217;s &#8220;Double 11&#8221; shopping festival, which shifted some spending to October as per SCMP.



However, Fu emphasized that combined sales figures for October and November showed more substantial growth compared to the third quarter.



Despite this, he acknowledged the need to stabilize employment and incomes to fully unleash domestic demand, citing an increasingly complex external environment and insufficient internal demand as ongoing challenges.



At China&#8217;s annual Central Economic Work Conference (CEWC) last week, leaders prioritized <a target="_blank" href="https://www.benzinga.com/government/regulations/24/12/42460099/us-listed-chinese-stocks-give-up-gains-in-anticipation-of-more-stimulus-to-beat-us-tariffs" rel="noreferrer noopener">boosting consumption</a>, enhancing investment efficiency, and expanding domestic demand as top economic goals for 2025.



Industrial production rose 5.4% year-on-year in November, slightly exceeding October&#8217;s 5.3% increase, while the urban unemployment rate remained steady at 5%.



Experts, including Ding Shuang of Standard Chartered, told the SCMP that retail sales have returned to a subdued pace, suggesting that broader policy measures are needed to boost consumer confidence and stabilize key markets like property and stocks.



China&#8217;s economic outlook for 2025 faces external headwinds, including geopolitical tensions, semiconductor embargo and tariff threats from U.S. President-elect Donald Trump.



Price Actions: At the last check on Friday, BABA stock is down 1.80% to $86.24. JD is down 1.23%, BIDU is down 1.67%, LI is down 1.67%, and XPEV is down 0.81%.



Also Read:



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<li><a href="https://www.benzinga.com/24/12/42468724/warner-bros-discovery-restructures-with-focus-on-streaming-and-tv-divisions-stock-shoots-up" target="_blank" rel="noreferrer noopener">Warner Bros. Discovery Stock Spikes As Board OKs Restructuring Plan</a></li>
</ul>



Photo by asiandelight on Shutterstock

Government

Regulations

Emerging Markets

Media

BABA

BIDU

US-Listed Chinese Stocks React To Underwhelming Consumption Data

Satoshi Action Fund CEO and co-founder Dennis Porter on Sunday revealed that President elect Donald Trump is exploring the possibility of issuing an executive order to create a <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42487721/bitcoin-much-better-than-gold-as-reserve-asset-says-crypto-hedge-fund-founder">Strategic Bitcoin Reserve (SBR)</a>.



The move would mark a significant shift in U.S. economic policy, positioning Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) as a core national asset.



"If he (Trump) doesn't act, we will be ready to apply pressure at the state level by creating a wave of Strategic Bitcoin Reserves," Porter <a href="https://x.com/Dennis_Porter_/status/1868351652258005166">stated</a> in a series of social media posts.



He emphasized the urgency of the initiative, adding, "We are in a race to SBR."



Porter's comments come as Trump has signaled openness to the concept, previously promising to end federal sales of seized Bitcoin and instead <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/42220158/donald-trump-to-establish-a-national-bitcoin-reserve-pros-vs-cons-compared">build a permanent reserve.</a> 



Speaking at a summer conference, Trump said, "For too long, the government has violated the cardinal rule that every Bitcoin owner knows by heart: Never sell your Bitcoin." 



He described the proposed reserve as a "permanent national asset to benefit all Americans."



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42486061/always-pay-the-tax-man-bitcoin-investor-sentenced-to-two-years-for-tax-evasion-on-crypto-gains">Always Pay The Tax Man: Bitcoin Investor Sentenced To Two Years For Tax Evasion On Crypto Gains</a>



While the idea of a federal reserve garners attention, Porter stressed the importance of passing state-level legislation to solidify the framework. 



"Executive Orders get reversed when a new president takes over. They are worthless," he noted, advocating for a more durable legislative approach.



The campaign to establish Bitcoin reserves reflects growing interest in cryptocurrency as a strategic asset. 



Supporters argue that such reserves could strengthen the U.S. position in an increasingly digital global economy. 



"Applying pressure requires us to pass SBR laws,&#8221; Porter said.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42485534/riot-platforms-acquires-5117-bitcoin-for-510million">Riot Platforms Acquires 5,117 Bitcoin For $510 Million</a></li>
</ul>



Photo: Shutterstock

Trump Reportedly Considering Executive Order To Establish Strategic Bitcoin Reserve

Leading cryptocurrencies surged Sunday evening as investors raised risk appetites on strong expectations of another interest rate cut.



<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>+5.04%</td><td>$106,370.44</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>+3.51%</td><td>$3,992.72</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>+2.21%</td><td>$0.4033</td></tr></tbody></table></figure>



What Happened: Bitcoin tapped a new all-time high of $106,000, having earlier broken through the $102,000 resistance



Following in its footsteps, Ethereum rose above $4,000 before pulling back slightly.



Total cryptocurrency liquidations topped $309 million over the last 24 hours, out of which $204 million belonged to leveraged shorts.



The market started to get overleveraged, and any dip below $100,000 would liquidate over $1 billion in long positions.



Bitcoin's Open Interest soared by 7.48% in the last 24 hours. A rise in OI, coinciding with a price rally, indicated an influx of fresh money into the derivatives market.



Market sentiment remained in the "Extreme Greed" zone, as 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>Fantom (FTM)</td><td>+20.94%</td><td>$1.47</td></tr><tr><td>Stacks (ETX)</td><td>+17.47%</td><td>$2.59</td></tr><tr><td>Ondo (ONDO)</td><td>+16.05%</td><td>$2.14</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.74 trillion, following an increase of 1.92% over the last 24 hours.



Stock futures traded near flatline Sunday evening. The Dow Jones Industrial Average Futures rose 46 points, or 0.10%, as of 8:40 p.m. EDT.&nbsp; Futures tied to the S&amp;P 500 rose 0.07%, while Nasdaq 100 Futures added only 0.04%.



This week, investors will focus on the year's last Federal Open Market Committee meeting, during which the central bank officials will decide on the benchmark interest rates.



Participants have priced in a 93.7% chance of a 0.25% cut to a 4.25%-4.50% range, <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">as per</a> the CME Fedwatch tool.



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



Analyst Notes: Amid Bitcoin's strong rally, influential cryptocurrency analyst Ali Martinez sparked concerns about a potential market top.



"Long-term Bitcoin holders often sell near market tops. Interestingly, in 2017 and 2021, their biggest sell-offs occurred right before the final leg-up," Martinez said, drawing parallels with ongoing patterns.



"Could we be on the verge of a similar pattern? Is this the start of a market top?"



<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">Long-term <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> holders often sell near market tops. Interestingly, in 2017 and 2021, their biggest sell-offs occurred right before the final leg up. Could we be on the verge of a similar pattern? Is this the start of a market top? <a href="https://t.co/3L0cFoNebs">pic.twitter.com/3L0cFoNebs</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1868455501140521439?ref_src=twsrc%5Etfw">December 16, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Another widely followed market observer, Michaël van de Poppe, predicted the "next wave" for altcoins.



"Yes, it&#8217;s time for a new move and, as the markets tend to move like this, but this move is going to be significantly bigger than the previous one," the analyst remarked.



<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 <a href="https://twitter.com/hashtag/Altcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Altcoin</a> markets are ready for their next wave. Yes, it&#39;s time for a new move and, as the markets tend to move like this, but this move is going to be significantly bigger than the previous one. Here&#39;s an ideal recipe on how to handle those moves, maximizing returns. The… <a href="https://t.co/bjhuhdJ5Kz">pic.twitter.com/bjhuhdJ5Kz</a>&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1868360673098625106?ref_src=twsrc%5Etfw">December 15, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



In the last 24 hours, Bitcoin dominance dropped by 4% to 55.9%, while the market share of altcoins rose 3.48% to 31.2%.



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



<ul>
<li><a href="https://www.benzinga.com/24/12/42470335/if-you-invested-1000-in-xrp-token-when-ashton-kutcher-surprised-ellen-degeneres-with-4m-charity-donation-heres-how-much-youd-have-today">If You Invested $1,000 In XRP Token When Ashton Kutcher Surprised Ellen DeGeneres With $4 Million Charity Donation, Here&#8217;s How Much You&#8217;d Have Today</a></li>
</ul>



Photo courtesy: Shutterstock

Bitcoin Breaks $106K, Ethereum, Dogecoin Rally Ahead Of Key Fed Meet But Top Analyst Triggers Anxiety With This Observation

Wedbush Securities analyst and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) bull Dan Ives said on Sunday that he is raising the price target on the EV giant&#8217;s stock from $400 to $515. 



What Happened: &#8220;&#8230;we believe the Trump White House will be a &#8216;total game changer&#8217; for the autonomous and AI story for Tesla and Musk over the coming years,&#8221; Ives said in a post on social media platform X. 



&#8220;Bull case is $650 for 2025. AI/autonomous opportunity is worth at least $1 trillion.&#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">Raising price target on Tesla to $515 as we believe the Trump White House will be a &quot;total game changer&quot; for the autonomous and AI story for Tesla and Musk over the coming years. Bull case is $650 for 2025. AI/autonomous opportunity is worth at least $1 trillion &#x1f525;&#x1f3c6;&#x1f402;&#x1f37f;&#x1f4cd;&mdash; Dan Ives (@DivesTech) <a href="https://twitter.com/DivesTech/status/1868365307636801629?ref_src=twsrc%5Etfw">December 15, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Ives believes Tesla could touch a market cap of $2 trillion by 2025-end with the company&#8217;s vision for autonomous driving finding a more concrete structure. Wedbush&#8217;s current price target, however, assumes no value for the company&#8217;s Optimus humanoid robot which Ives said &#8220;could be a major upside catalyst for the Tesla story.&#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">We believe Tesla could reach a $2 trillion market cap by the end of 2025 as the company&#39;s autonomous vision starts to take shape. Importantly, our price target conservatively assumes no value today for Optimus which could be a major upside catalyst for the Tesla story &#x1f525;&#x1f3c6;&#x1f402;&#x1f37f;&#x1f447; <a href="https://t.co/IBxilcLgC3">https://t.co/IBxilcLgC3</a>&mdash; Dan Ives (@DivesTech) <a href="https://twitter.com/DivesTech/status/1868414138105618765?ref_src=twsrc%5Etfw">December 15, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Why It Matters: Tesla stock closed up 4.3% at $436.23 on Friday. The stock is up by around 76% year-to-date, according to data from <a href="http://pro.benzinga.com">Benzinga Pro.</a>



33 analysts together have a consensus rating of &#8220;Buy&#8221; on Tesla. Brokerage Stifel gave Tesla a price target of $411 earlier this month while maintaining a &#8220;buy rating.&#8221;



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/quote/TSLA/analyst-ratings"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16041724/Screenshot-2024-12-16-at-2.47.16%E2%80%AFPM.png" alt="" class="wp-image-693380"/></a></figure>



Many, including Ives, are hopeful that Musk&#8217;s newly forged friendship with President-elect Donald Trump will enable a better environment for the deployment of autonomous vehicles while his other policies against EVs will harm smaller rival players, effectively reducing competition for Tesla. 



Last week, it was reported that a trump transition team responsible for devising a 100-day strategy for automotive policy wants the incoming administration to<a href="https://www.benzinga.com/24/12/42495770/trump-transition-team-advocates-for-abolishing-car-crash-reporting-rule-tesla-stands-to-gain"> abolish the requirement to report car crashes</a> if advanced driver assistance or autonomous driving technologies are engaged within 30 seconds of impact. Tesla has been a critic of the requirement. 



Musk's Tesla is developing a set of advanced driver assistance features called full self-driving with which it intends to enable&nbsp;<a href="https://www.benzinga.com/trading-ideas/movers/24/11/42038624/tesla-stock-is-trading-higher-monday-whats-going-on" target="_blank" rel="noreferrer noopener">vehicle autonomy in due time.</a>



In November, it was also reported that Trump&nbsp;is planning to&nbsp;<a href="https://www.benzinga.com/news/global/24/11/41999238/ross-gerber-blasts-teslas-support-for-ending-ev-tax-credit-as-insanity-amid-reported-policy-shift-under-trump-administration" target="_blank" rel="noreferrer noopener">end the $7,500 consumer tax credit</a>&nbsp;for purchasing EVs under the Inflation Reduction Act (IRA).



&nbsp;"In my view, we should end all government subsidies, including those for EVs, oil and gas," <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/42005034/elon-musk-backs-calls-for-end-to-ev-subsidies-but-former-tesla-exec-warns-of-massive-drop-in-manufacturing-investments-if-trump-follows-through">Musk then wrote</a> on X.



Check out more of Benzinga's Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link.</a>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/24/12/42501487/cybertruck-production-rate-was-reduced-even-before-decembers-production-pause-says-tesla-researcher" target="_blank" rel="noreferrer noopener">Tesla's Cybertruck Production Rate Was Reduced Even Before December's Pause, Says Researcher</a></li>
</ul>



Image via Tesla

Tech Bull Raises Tesla Price Target To $515, Predicts $1 Trillion AI Opportunity Under Trump White House: 'Total Game Changer'

U.S. stock futures were trading higher on Monday in premarket hours after the tech-heavy <a href="https://www.benzinga.com/24/12/42495649/microstrategy-palantir-axon-added-to-nasdaq-100-super-micro-computer-moderna-illumina-exit-the-index">Nasdaq 100 index</a> extended its relentless climb last week, setting new record highs and nearing the 22,000-point milestone. The futures of all four major indices were trading higher.



The 10-year and two-year Treasury notes yielded 4.38% and 4.23%, respectively. The Federal Reserve&#8217;s upcoming meeting this week is highly anticipated by market observers.



The Federal Open Market Committee is widely expected to announce another interest rate reduction at the conclusion of their meeting on Wednesday. The probability of a further 25 basis point rate cut in December rose to 97.1% versus 61.9% a month ago, according to <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">CME Group&#8217;s FedWatch tool</a>.



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&#8216;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>0.31%</td></tr><tr><td>S&amp;P 500</td><td>0.20%</td></tr><tr><td>Dow Jones</td><td>0.10%</td></tr><tr><td>Russell 2000</td><td>0.27%</td></tr></tbody></table></figure>



In premarket trading on Monday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was up 0.20% to $605.44 and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.32% to $532.25, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.



Cues From The Last Session



The Nasdaq 100 rally was driven by <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42492966/ai-driven-rally-pushes-tech-stocks-to-records-broadcom-enters-trillion-dollar-club-inflation-data-flashes-warning-signal-this-week-in-the-markets">tech giants and AI optimism</a>. It&#8217;s set to double since the start of 2023, with five of the &#8220;Magnificent Seven&#8221; stocks hitting record highs. Broadcom Inc. joined the $1 trillion market cap club after strong earnings.



The Dow Jones Industrial Average, on the other hand, fell for the seventh consecutive day on Friday and S&amp;P 500 index closed marginally lower.



<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">Dow down 7 days in a row, but only 2.6% off the all-time highs (third least ever). I see 78 7-day losing streaks since 1900 and an avg of 24.7% off ATHs.&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1868406754448691224?ref_src=twsrc%5Etfw">December 15, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Inflation data released during the week raised some red flags. Consumer inflation rose 2.7% year-over-year in November, in line with expectations, but producer inflation jumped to 3% year-over-year, exceeding estimates of 2.6%. This marked the sharpest increase since February 2023, raising concerns about potential cost pass-throughs to consumers.



<figure class="wp-block-table"><table><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>0.12%</td><td>19,926.72</td></tr><tr><td>S&amp;P 500</td><td>-0.002%</td><td>6,051.09</td></tr><tr><td>Dow Jones</td><td>-0.20%</td><td>43,828.06</td></tr><tr><td>Russell 2000</td><td>-0.60%</td><td>2,34.90</td></tr></tbody></table></figure>



See Also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42492966/ai-driven-rally-pushes-tech-stocks-to-records-broadcom-enters-trillion-dollar-club-inflation-data-flashes-warning-signal-this-week-in-the-markets">AI-Driven Rally Pushes Tech Stocks To Records, Broadcom Enters Trillion-Dollar Club, Inflation Data Flashes Warning Signal: This Week In The Markets</a>



Insights From Analysts



Talking about the possibility of a &#8220;Santa Rally,&#8221; by the end of December the chief market strategist at Carson Group, Ryan Detrick shared a chart titled &#8216;Santa Comes Later In December&#8217; showing how the market has picked up after Dec. 16, on an average from 1950 to 2023.



He said, &#8220;Weak breadth, inflation heating up, bears saying they are sorry, etc, have all been listed as reasons for the recent weakness. Or maybe it is perfectly normal for stocks not to do much the first half of December, before an end-of-year rally?&#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">Weak breadth, inflation heating up, bears saying they are sorry, etc, have all been listed as reasons for the recent weakness. Or maybe it is perfectly normal for stocks not to do much the first half of December, before an end of year rally? Let&#39;s not give up on Santa yet. <a href="https://t.co/xo6mxsq8Yg">pic.twitter.com/xo6mxsq8Yg</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1868396543985762667?ref_src=twsrc%5Etfw">December 15, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



He further made a case for a year-end rally in another X post. He shared a chart that compared high-yield bonds with U.S. Treasury bonds and high-beta stocks with low volatility stocks. &#8220;High yield and high beta are outperforming bonds and low volatility,&#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">Nice chart from <a href="https://twitter.com/HumbleStudent?ref_src=twsrc%5Etfw">@HumbleStudent</a> on why a year-end rally is still possible. High yield and high beta are outperforming bonds and low volatility. Risk on signals are still in play (weak breadth and all). <a href="https://t.co/VTVXgmve85">pic.twitter.com/VTVXgmve85</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1868405432550555851?ref_src=twsrc%5Etfw">December 15, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Tom Lee, the managing partner and head of research at Fundstrat Global Advisors, hosted a webinar outlining his 2025 outlook. According to him, the S&amp;P 500 will have a better first half of the year getting up to 7,000, followed by a weaker second half of the year with us ultimately ending at 6,600



&#8220;To us, the downside risks are: DOGE too effective and GDP falls on spending cuts, (if) tariffs are actually implemented and GDP impacted,&#8221; Lee said.



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 Monday, the Empire State manufacturing survey data for December will be released at 8:30 a.m., ET.</li>



<li>The S&amp;P flash U.S. services and manufacturing PMI data for December will be released at 9:45 a.m., ET.</li>



<li>On Tuesday, U.S. retail sales data for November will be announced at 8:30 a.m., ET.</li>



<li>The industrial production and capacity utilization data for November will be announced at 9:15 a.m., ET.</li>



<li>The home builder confidence index data will be released for December at 10:00 a.m., ET.</li>



<li>And, lastly, the Federal Open Market Committee meeting will begin on Tuesday.</li>



<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>



<li>Micron Technology, Lennar, General Mills, and Toro will report earnings.</li>



<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>Accenture, Nike, Cintas, FedEx, and Paychex will report earnings.</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>MicroStrategy Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) advanced 5.26%, Palantir Technologies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) was up 0.78%, and Axon Enterprise Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXON#NASDAQ">AXON</a>) rose by 3.12% in premarket trade as Nasdaq announced on Friday that these stocks will join the Nasdaq 100 index.</li>
</ul>



<ul>
<li>Moderna Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>) declined by 0.5%, Super Micro Computer Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) fell by 11.71% and Illumina Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILMN#NASDAQ">ILMN</a>) dropped by 0.99% in premarket after Nasdaq&#8217;s Friday announcement, booting these stocks off Nasdaq 100 index.</li>
</ul>



<ul>
<li>Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) was up 1.57%, continuing Friday&#8217;s upmove fueled by strong quarterly earnings and upbeat AI-driven guidance for the coming year. Friday&#8217;s rally propelled the chipmaker into the exclusive $1 trillion market-cap club, making it the eighth-largest publicly traded company.</li>
</ul>



<ul>
<li>Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) was 1.07% up after Wedbush&#8217;s Dan Ives hiked its price target citing AI and autonomous opportunity worth $1 trillion.</li>
</ul>



<ul>
<li>Amplitech Group Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMPG#NASDAQ">AMPG</a>) advanced 4.76% in premarket after it announced the sale of 1,352,500 shares of its common stock at $1.60 per share, totaling to price of $2.2 million.</li>
</ul>



<ul>
<li>Checkpoint Therapeutics Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CKPT#NASDAQ">CKPT</a>) was up 11.44% after the U.S. Food and Drug Administration approved UnloxcyT for the treatment of adults with metastatic cutaneous squamous cell carcinoma.</li>
</ul>



Commodities, Bonds And Global Equity Markets:



Crude oil futures were declining in the early New York session by 1.43% to hover around $70.27 per barrel.



The gold spot index rose by 0.08% to $2,677.91 per ounce. The Dollar Index was down 0.09% to 106.912 level.



Asian markets declined on Monday including Australia&#8217;s ASX 200, Hong Kong&#8217;s Hang Seng, China&#8217;s CSI 300, Japan&#8217;s Nikkei 225, India&#8217;s S&amp;P BSE Sensex, and South Korea&#8217;s Kospi Index. Most European markets also fell except Spain&#8217;s IBEX 35.



<ul>
<li>Read Next: <a href="https://www.benzinga.com/24/12/42503379/balaji-srinivasan-contrasts-ais-reputation-as-making-it-easy-to-fake-things-with-cryptos-tamper-proof-technology">Former Coinbase Tech Chief Contrasts AI&#8217;s Reputation As Making It Easy To Fake Things With Crypto&#8217;s Tamper-Proof Technology</a></li>
</ul>



Image Via Shutterstock

Market Summary

AMPG

AXON

CKPT

ILMN

MRNA

PLTR

SMCI

US Stocks To Open Higher Ahead Of Fed's Decision This Week: Analyst Says 'Santa Comes Later In December'

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