**Pre-Market Moves** 1. On Wednesday, December 17, US stock futures rose across the board. As of writing, Dow futures gained 0.23%, S&P 500 futures climbed 0.34%, and Nasdaq futures advanced 0.44%. 2. European markets were mixed: Germany’s DAX dipped 0.01%, the UK’s FTSE 100 surged 1.63%, France’s CAC 40 fell 0.15%, and the Euro Stoxx 50 edged up 0.12%. 3. WTI crude rose 1.74% to $56.09/barrel, while Brent crude increased 1.63% to $59.88/barrel.
**Market Highlights** - **Trump’s National Address**: Former President Trump announced via social media that he will deliver a national address at 9 PM ET (10 AM Beijing time Thursday). The speech comes as his approval ratings decline and economic headwinds persist, offering a platform to outline priorities ahead of the 2026 midterms. - **Fed Chair Interviews**: Trump may interview Fed Governor Christopher Waller on Wednesday as part of his search for a new Fed chair. Last week, he met with former Fed Governor Kevin Warsh, whom he considers a top contender alongside NEC Director Kevin Hassett. - **CPI Apathy**: Traders expect Thursday’s CPI report to trigger just a 0.7% swing in the S&P 500, below the 1% average volatility seen over the past year, per Barclays data. - **Oil Rebounds**: Brent crude rebounded from 2021 lows after Trump ordered sanctions on Venezuelan oil shipments. Venezuela’s output remains below historic highs at 590,000 barrels/day, with most exports going to China and India. - **Russia Sanctions**: The US is preparing sanctions on Russia’s energy sector, targeting shadow fleet tankers and traders, to pressure Putin into a Ukraine peace deal, sources say. Treasury Secretary Besant discussed the plans with European envoys.
**Analyst Views** - **Goldman Sachs**: The Fed may cut rates more aggressively in 2026 amid labor market risks, steepening the yield curve and pressuring the dollar. - **Goldman Asset Management**: AI funding fears are overblown, with 90% of projected $700B–$1T in spending backed by operating cash flows, said co-head Sung Cho.
**Stock-Specific News** - **Amazon.com (AMZN.US)**: In talks to invest $10B+ in OpenAI, potentially adopting Amazon’s AI chips to challenge NVIDIA’s (NVDA.US) dominance. - **Warner Bros. (WBD.US)**: Board likely to reject Paramount’s hostile bid, favoring its existing Netflix partnership. - **NVIDIA (NVDA.US) & SK Hynix**: Developing an AI SSD with 10–30x faster performance, targeting 2027 mass production. - **Waymo (GOOGL.US)**: Seeking $15B+ at a ~$100B valuation for autonomous taxi expansion. - **GSK (GSK.US)**: FDA approved its twice-yearly asthma drug Exdensur, which cuts severe attacks by 54%.
**Key Events Ahead** - 21:15 Beijing: Fed Governor Waller speaks. - 22:00 Beijing: Trump’s national address. - 22:05 Beijing: NY Fed’s Williams opens forex conference. - 23:30 Beijing: EIA crude inventory data. - 01:30 Beijing (Dec 18): Atlanta Fed’s Bostic on economic outlook.
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