Market U.S. stocks closed lower on December 31st, with the S&P 500 index falling for a third consecutive day, while Federal Reserve meeting minutes highlighted internal divisions among policymakers. Among the top 20 U.S. stocks by trading volume on December 31st, Taiwan Semiconductor Manufacturing (TSMC) began mass production of its 2-nanometer chips. Popular U.S.-listed Chinese stocks closed mixed on December 31st; Baidu gained 4.39%, while Vipshop Holdings fell 6.92%. Oil prices edged lower on Tuesday as the market monitored hopes for Russia-Ukraine peace talks alongside escalating tensions in Yemen. Spot gold rose 0.33% to $4,346.98 per ounce. European stock markets advanced, with mining shares strengthening ahead of the release of the Federal Reserve's meeting minutes.
Macro The Federal Reserve's meeting minutes underscored divisions within the central bank, revealing that a majority of officials deemed further interest rate cuts appropriate. Following the release of the Fed minutes, traders maintained their bets on two interest rate cuts for the coming year. The United States imposed sanctions on organizations in Iran and Venezuela involved in weapons trading. The U.S. has instructed its embassies in the Western Hemisphere to report on crimes linked to large-scale migration. Eurostar services from London were suspended due to a power supply fault. Russia's negotiating stance is hardening as European leaders consult on the situation in Ukraine.
Corporate The U.S. Department of Justice announced that Disney has agreed to pay a $10 million fine for violating children's privacy. Elon Musk confirmed that xAI has purchased a third building, with its training computing power expected to approach 2 gigawatts. Warner Bros. plans to reject Paramount's acquisition proposal next week. A CSX train carrying liquid sulfur derailed near the Kentucky-Tennessee railway. A U.S. freight train derailed, causing a fire in a tank car carrying molten sulfur. Rivian's stock failed to hold above the $20 mark, providing further evidence that its momentum is waning. Boeing secured a substantial contract for F-15 fighter jets, related to U.S. military sales to Israel. Warren Buffett officially retired; his most favored market indicator reveals a key signal for the current U.S. stock market. Tesla's website unusually published a pessimistic analyst delivery forecast, anticipating a 15% year-on-year decline. 2026 Prediction: Apple is expected to reverse the downturn in its artificial intelligence business. A system failure at Walmart affected thousands of consumers.
Commentary Annual AI Review: The top 10 core trends for 2025 and key focus areas for 2026. In 2025, we said goodbye to these well-known brands. EU automotive policy tailwinds propelled platinum to its largest monthly gain in 39 years. Venture capital firms predict that corporate AI spending will grow in 2026, but the number of partner suppliers will shrink. Silver rebounded after experiencing its largest single-day decline in over five years. The U.S. dollar recorded its largest annual decline since 2017 and may weaken further next year. U.S. Stock Market: The S&P 500 fell for a third straight day, with major tech stocks showing divergent performance. Commodities Summary: Oil prices stabilized, copper recorded its longest winning streak since 2017, and silver prices recovered. U.S. Bond Market: Treasury yields closed largely flat, erasing losses seen amid thin trading volumes. New York Forex: The Bloomberg Dollar Spot Index edged higher in quiet year-end trading. European Bond Market: German government bond prices fell, while Spanish CPI data supported the European Central Bank's stance of maintaining current policy.
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