What Moved The Markets This Week

Dec 22, 2024

Sunday Morning Markets

Trading Week 51, covering Monday, Dec 16 through Friday, Dec 20. Your weekly financial markets update, in less than 5 minutes.

Fed Eases: Fed cuts rates, but projects only two more cuts in 2025.
Shutdown Averted: Senate funds government for 3 months.
Manufacturing Falls: U.S. PMI drops to 48.3, lowest since 2020.
GLP-1 Moves: Novo trials disappoint; FDA lifts Zepbound shortage.
Apple AI: Apple, Tencent, and Bytedance discuss rolling out AI features in China.
Global Pause: BoJ, BoE hold rates amid economic uncertainty.
TikTok Case: Supreme Court takes TikTok ban, weighing free speech.
Threads Growth: Threads hits 100M daily users as X loses ground.
Waymo Expands: Waymo to launch Tokyo robotaxis by 2025.
OpenAI o3: OpenAI’s new models near AGI with record scores.
Databricks: Databricks raises $10B, hits $62B valuation.
Earnings: Nike, FedEx, and Micron

Fed lowers rates but projects slower pace of further cuts, with just two more in 2025. The SEP forecasts solid growth but persistent inflation, giving the Fed room to slow its pace.
U.S. government shutdown averted after the Senate approved bipartisan funding package. The bill funds federal agencies at current levels for 3 months, adding disaster relief and farm aid.
Inflation was softer than expected in November with the Fed's key gauge at 2.4% annually and core PCE rising 2.8%, both below forecasts. The personal saving rate edged lower to 4.4%.
U.S. manufacturing slumps further in December, with PMI falling to 48.3, its lowest level since mid-2020. Rising input costs and tariff fears add to industry pressures.
SoftBank CEO and Trump announce $100B investment in the U.S., aiming to create 100,000 jobs over four years. The investments will focus on AI, chips, and advanced infrastructure.
Amazon workers strike during Christmas rush, demanding recognition of the Teamsters union and better contracts. Amazon dismisses the action as a PR stunt, claiming no disruptions.
FedEx to spin off its freight trucking unit, aiming to unlock shareholder value and streamline operations. Shares jumped 8% after the announcement despite weak quarterly profits.
GLP-1 market faces shakeup this week as the FDA ruled Zepbound is no longer facing a shortage, Merck inks $2B deal with Hansoh Pharma, and Novo Nordisk's Cagrisema trials disappoint.

Apple in talks with Tencent, ByteDance to roll out AI features in China as it navigates local regulations and declining market share in the world's largest smartphone market.
Honda and Nissan to reportedly begin merger talks, aiming to form a holding company with Mitsubishi. The partnership would create an auto giant selling 8M vehicles annually.
German business confidence hits post-pandemic low as political turmoil and a manufacturing slump stoke recession fears. The Ifo index fell for the sixth time in seven months.
Canada's inflation cools to 1.9% in November, with easing mortgage and grocery costs. Core inflation remains sticky, keeping the Bank of Canada cautious on rate cuts.
Japanese chipmaker Kioxia rises 10% in IPO debut, reaching a $5.6B valuation. Kioxia produces NAND chips for smartphones, servers, and devices, with growth driven by AI and data center demand.
Central banks hold steady amid global uncertainty as the Bank of Japan and Bank of England kept rates unchanged, citing wage concerns and economic sluggishness.
India eyes trade deal with U.S. under Trump, preparing to cut tariffs on imports like farm goods, medical devices, and LNG. It aims to draw U.S. firms away from China and boost bilateral ties.

Supreme Court takes TikTok ban case, weighing free speech rights. The case, tied to national security concerns, could impact 170M U.S. users and billions of dollars in creator earnings.
Threads hits 100M daily active users, marking rapid growth as it benefits from X's user exodus. Meta's platform now boasts 300M monthly users, up from 275M in November.
Waymo to test robotaxis in Tokyo by 2025, marking its first international move. Partnering with Japan's largest taxi operator, the expansion begins with mapping key areas of the city.
OpenAI announces new o3 models with advanced reasoning, scoring 96.7% on math exams and 87.7% on graduate science tests, edging toward AGI despite safety concerns.
Databricks raises $10B at $62B valuation, up from $43B in 2023. The AI and data software giant plans acquisitions, employee liquidity, and global expansion amid anticipation of an upcoming IPO.
China’s AI models outpacing U.S. rivals in some areas, leveraging open-source strategies and advancing domestic tech despite U.S. sanctions and chip restrictions.
OpenAI launches phone and text access to ChatGPT, offering U.S. users 15 minutes of free calls monthly via 1-800-CHATGPT and global messaging through WhatsApp.