Markets U.S. stocks closed higher on Monday as AI-related trading regained momentum. Top 20 U.S. stocks by turnover: Alphabet agreed to acquire Intersect for $4.75 billion. Most popular Chinese ADRs rose, with TSMC up 1.47% and Alibaba gaining 0.78%. Spot gold surged 2.48%, hitting a record high of $4,449.18 per ounce. WTI crude rose 2.6% as the U.S. intensified actions against Venezuelan oil shipments. European equities were flat, while mining stocks climbed alongside commodities.
Macro The U.S. president may nominate a new Fed chair in early January. The Trump administration halted all offshore wind projects. The Pentagon will collaborate with xAI to expand its AI platform. Venezuelan oil shipments slowed as more vessels turned back amid U.S. interceptions. The FCC will restrict imports of foreign-made drones and critical components. The U.S. Census Bureau released delayed shutdown data for January. The EU relaxed its 2035 EV targets, sparking concerns among startups and automakers. The U.S. unveiled a new shipbuilding plan to advance Trump’s "Golden Fleet" initiative. A U.S. envoy described talks with Ukrainian and European officials as constructive.
Corporate Oracle’s founder provided $40.4 billion in guarantees to bolster Paramount’s bid for Warner Bros. Bank of America’s CEO noted AI’s growing economic impact. Google’s $4.75 billion Intersect acquisition expands its AI investments. Wind energy stocks fell after Trump halted project approvals. Coinbase acquired a clearing firm to deepen its prediction market bet. MICROSTRATEGY boosted cash reserves and paused Bitcoin purchases. Mercedes agreed to a $120 million settlement with U.S. states over emissions violations.
Commentary Traders bet heavily on Treasury options, expecting 10-year yields to drop to 4% soon. Over 50,000 U.S. job cuts this year were linked to AI. Analysts remain bullish on stocks, though some investors grow wary. The dollar resumed its decline, while the yen strengthened on intervention warnings. ECB’s Schnabel ruled out near-term rate hikes but flagged inflation risks. Japan’s finance minister signaled readiness for bold action on the yen. The U.S. 2-year Treasury auction yield slightly exceeded pre-sale levels. The S&P 500 neared record highs, poised for its longest monthly winning streak since 2018. Commodities: Oil rose, while copper and gold hit record highs. U.S. Treasuries dipped post-2-year auction; 5-year sale looms. Eurozone bonds fell, with French 10-year yields at 2011 peaks.
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