Federal Reserve Chair Jerome Powell adopted a hawkish stance during his Wednesday press conference after the December Fed meeting, sparking a market bloodbath as the New York session <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42563299/feds-powell-shocks-markets-its-a-new-phase-were-significantly-closer-to-neutral">headed to the close.</a>



Although the Federal Reserve lowered interest rates by 0.25% to a range of 4.25%-4.5%, as widely anticipated, the updated economic projections suggest just two potential rate cuts in 2025 — down from four projected in September and fewer than the three anticipated by markets before the meeting.



Powell described the shift as &#8220;a new phase&#8221; for monetary policy, emphasizing that after 100 basis points of rate cuts in 2024, rates are now significantly closer to a neutral stance. 



Stocks tumbled across the board, the U.S. dollar soared to two-year highs and Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) cratered over 5%, as investors digested the reality of a shift in the monetary policy stance by the Federal Reserve.



The CBOE Volatility Index, known as the VIX and Wall Street&#8217;s fear gauge, skyrocketed 58% to 25, reflecting a spike in investor uncertainty and heightened anxiety over the future of interest rates.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="557" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18161803/image-161-1024x557.png" alt="" class="wp-image-698569" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18161803/image-161-1024x557.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18161803/image-161-300x163.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18161803/image-161-768x418.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18161803/image-161-1536x836.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18161803/image-161.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">Wall Street Wipeout: Major Indices Slammed</h3>



The Dow Jones Industrial Average, as tracked by the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>), dropped 1,123 points, falling 2.6% to close at 42,326, marking its worst one-day drop since September 2022. Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) recorded the worst performance among blue-chip stocks, down 4.6%.



The S&amp;P 500 index — tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — fell 178 points, down 2.9% to 5,872, also marking its worst day since September 2022. Paycom Software Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PAYC#NYSE">PAYC</a>) was the major laggard within the S&amp;P 500, down 10%.



The tech-heavy Nasdaq 100, tracked by the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), experienced an even sharper drop of 3.6%, closing at 21,209 as interest rate-sensitive technology stocks took a beating. Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) tumbled 8.1%, marking the worst performance within the Nasdaq 100.



Every Magnificent Seven company ended the day in the red, collectively erasing more than $600 billion in market value on Wednesday.



Small caps in the Russell 2000 posted the steepest losses, plummeting 4.7% to 2,225. With Wednesday&#8217;s move, the iShares Russell 2000 ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NASDAQ">IWM</a>) has fully erased the post-election rally.



All major U.S. equity sectors finished in the red. 



Consumer Discretionary stocks suffered the most, plunging 4.5%, followed by Real Estate, which dropped 4% as rising rates weigh heavily on growth-oriented and interest-rate-sensitive industries.



Technology, the largest sector by market capitalization, fell 3.2%, with chipmakers and software companies bearing the brunt of the selloff. 



Communications and Materials both declined 2.9%, while Financials dropped 3%, reflecting pressure across cyclical areas of the market.



Even traditionally defensive sectors failed to escape the selloff. Utilities and Consumer Staples fell 2.4% and 1.5%, respectively.



<h3 class="wp-block-heading">Dollar Surges To 2-Year Highs, Hammers Gold And Bitcoin</h3>



The U.S. dollar emerged as the day's clear winner, with the dollar index (DXY), followed by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), climbing 1.2% to reach its highest level since November 2022.



As the greenback rallied, gold failed to provide a safe haven, falling 2.1% to $2,580 per ounce, while silver dropped 3.5%.



Risk-off sentiment extended into alternative assets. Bitcoin plunged 5.5%, trading just above $101,500.



During the press conference, Powell was asked whether the U.S. government should consider building a strategic reserve of Bitcoin. Powell quickly dismissed the idea, making it clear that such a move is not on the Fed&#8217;s radar.



"We're not allowed to own Bitcoin," Powell said, emphasizing the legal and structural limitations of the Federal Reserve. "The Federal Reserve Act dictates what we can own, and we're not seeking any changes to that law."



Read Next: 



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<li><a href="https://www.benzinga.com/news/econ-s/24/12/42561549/fed-slashes-interest-rates-by-0-25-as-predicted-december-dot-plot-flags-only-2-potential-cuts-in-2025">Fed Slashes Interest Rates By 0.25% As Predicted: December Dot Plot Flags Only 2 Potential Cuts In 2025</a></li>
</ul>



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Powell Triggers Market Carnage: VIX Spikes 58%, Stocks Plummet, Dollar Hits 2-Year Highs, Bitcoin Nosedives

Micron Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) reported financial results for the first quarter of fiscal 2025 after the market close on Wednesday. Here&#8217;s a rundown <a href="https://www.benzinga.com/pressreleases/24/12/g42563530/micron-technology-inc-reports-results-for-the-first-quarter-of-fiscal-2025">of the report</a>.



Q1 Earnings: Micron reported first-quarter revenue of $8.71 billion, missing the&nbsp;<a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">consensus estimate</a>&nbsp;of $8.72 billion. The company reported first-quarter adjusted earnings of $1.79 per share, beating analyst estimates of $1.76 per share, according to&nbsp;<a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Operating cash flow came in at $3.24 billion versus $3.41 billion in the prior quarter and $1.4 billion in the comparable quarter last year. Adjusted free cash flow was $112 million in the quarter, down from $323 million in the prior quarter. The company ended the quarter with $8.75 billion in cash, marketable investments and restricted cash.



&#8220;Micron delivered a record quarter, and our data center revenue surpassed&nbsp;50%&nbsp;of our total revenue for the first time,&#8221; said&nbsp;Sanjay Mehrotra, president and CEO of Micron.



&#8220;While consumer-oriented markets are weaker in the near term, we anticipate a return to growth in the second half of our fiscal year. We continue to gain share in the highest margin and strategically important parts of the market and are exceptionally well positioned to leverage AI-driven growth to create substantial value for all stakeholders.&#8221;



Check This Out: <a href="https://www.benzinga.com/trading-ideas/24/12/42561975/whos-next-to-join-tesla-broadcom-in-1-trillion-club-over-50-say-the-worlds-biggest-retailer">Who&#8217;s Next To Join Tesla, Broadcom In $1 Trillion Club? Over 50% Say The World&#8217;s Biggest Retailer</a>



Outlook:&nbsp;Micron sees second-quarter revenue of $7.9 billion, plus or minus $200 million, versus estimates of $9 billion. The company expects second-quarter adjusted earnings of $1.43 per share, plus or minus 10 cents per share, versus estimates of $1.92 per share. 



Micron&#8217;s soft guidance appears to be weighing on shares after hours. Management will further discuss the quarter on a call with analysts and investors at 4:30 p.m. ET. 



MU Price Action: <a href="https://www.benzinga.com/quote/MU" target="_blank" rel="noreferrer noopener">Micron shares</a> were down 13.16% in after-hours, trading at $90.50 at the time of publication Wednesday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Read Next:



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<li><a href="https://www.benzinga.com/news/econ-s/24/12/42561549/fed-slashes-interest-rates-by-0-25-as-predicted-december-dot-plot-flags-only-2-potential-cuts-in-2025">Fed Slashes Interest Rates By 0.25% As Predicted: December Dot Plot Flags Only 2 Potential Cuts In 2025</a></li>
</ul>



Photo: Courtesy of Micron.

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Micron Q1 Earnings: Revenue Miss, EPS Beat, Soft Guidance Sinks Shares As Consumer Markets Turn 'Weaker' In Near Term

In a year marked by three consecutive rate cuts totaling 100 basis points, Federal Reserve Chair Jerome Powell said the Fed is shifting gears to a more cautious stance heading into 2025 as interest rates move tantalizingly close to a neutral <a href="https://www.benzinga.com/news/econ-s/24/12/42561549/fed-slashes-interest-rates-by-0-25-as-predicted-december-dot-plot-flags-only-2-potential-cuts-in-2025">environment for the economy.</a>



Following the latest 25-basis-point reduction announced Wednesday, the federal funds rate now sits at 4.25%-4.5%, the lowest since January 2023.



&#8220;We&#8217;re significantly closer to neutral,&#8221; Powell said during the post-meeting press conference. &#8220;From this point forward, it's appropriate to move cautiously and look for further progress on inflation,&#8221; he added. 



<h3 class="wp-block-heading">Powell Confirms Slower Rate Cuts On The Horizon</h3>



&#8220;I think from here it&#8217;s a new phase and we&#8217;re going to be cautious about further cuts," the Fed chair said.



The Fed&#8217;s December dot plot projects only two additional 25-basis-point cuts in 2025, compared to the four anticipated in September. The updated projections peg the federal funds rate at 3.9% by the end of next year and 3.4% by the close of 2026.



&#8220;With today&#8217;s action, we have lowered our policy rate by a full percentage point from its peak, and our policy stance is now significantly less restrictive,&#8221; Powell said. 



This shift toward caution was reflected in the FOMC's statement, which introduced new language about the &#8220;extent and timing&#8221; of future adjustments. 



Powell indicated that &#8220;extent&#8221; refers to how much room the Fed has left to cut rates without overstimulating the economy, while &#8220;timing&#8221; suggests a slower pace of change going forward.



<h3 class="wp-block-heading">Inflation Job Not Over, Labor Market Gradually Softer</h3>



Despite this year's progress, inflation remains a thorn in the Fed's side. 



Headline PCE inflation is now expected to reach 2.5% in 2025, up from the September estimate of 2.1%. Core PCE inflation is also forecast to hit 2.5%, up from 2.2% previously. 



Powell highlighted the challenges of achieving the Fed's 2% target: "While we've made a great deal of progress, it has been slower than we had hoped."



Despite the challenges, Powell struck a confident tone about the Fed's ability to bring inflation sustainably back to its 2% target. 



"We're not going to settle for anything less than 2%," Powell said. "It might take another year or two, but we are on the path."



Powell described conditions as &#8220;solid,&#8221; with the unemployment rate at 4.2%, the same as it was in July.



While job creation has slowed, Powell dismissed concerns of significant downside risks. "The labor market is gradually cooling in an orderly way," he said.



The hiring rate remains low, signaling reduced demand for workers, but layoffs are not increasing, Powell said. "This is a good labor market," he added. &#8220;Wages are growing at a healthy, sustainable pace, and we aim to keep it that way.&#8221;



<h3 class="wp-block-heading">Trump And Tariffs Risks</h3>



Powell also addressed questions on fiscal policy risks under the incoming Trump administration and inflationary effects of tariffs.



When asked whether policymakers factored in risks tied to the potential policy shifts under a new Trump administration, Powell struck a measured tone, stating the Fed is monitoring potential fiscal developments but refraining from speculation until specific policies are announced. 



"We're in a good place, but fiscal changes can influence inflation and economic growth," he said.



&#8220;We're in the phase of monitoring potential outcomes, not making policy assumptions.&#8221;



On tariffs, Powell said that while one-time tariff-driven price increases don't always translate into persistent inflation, the Fed will take a &#8220;careful and measured approach&#8221; in evaluating the effects if new tariffs are enacted. 



<h3 class="wp-block-heading">Market Plummets After Powell&#8217;s Remarks</h3>



Following Powell&#8217;s remarks, Fed futures imply just 37 basis points of cuts in 2025, down from 49 basis points immediately after the Fed statement. 



The S&amp;P 500 index — as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — extended its session losses during Powell&#8217;s press conference, tumbling by 2.6%, eyeing its worst session since September 2022.



The Nasdaq 100 tumbled by 3.5%, the Dow fell 2.3% and small cap stocks in the Russell 2000 tanked over 4%. 



The U.S. dollar index, trackd by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>), rocketed by 1.2%, reaching highs last seen in November 2022.



Gold plummeted over 2% and silver fell by 3.5%.



Bitcoin nosedived by 5.5%, hovering around $100,000.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534;WATCH LIVE: US Fed Rate Cut &#x7C; FOMC Meeting &#x7C; Jerome Powell Speech LIVE &#x7C; December 18th, 2024" width="500" height="281" src="https://www.youtube.com/embed/WQdK2IixF5c?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



Read Next:



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<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42558766/mortgage-applications-dip-as-rates-climb-it-is-still-cheaper-to-rent-than-purchase-for-82-out-of-97-major-cities">Mortgage Applications Dip As Rates Climb: &#8216;It Is Still Cheaper To Rent Than Purchase For 82 Out Of 97 Major Cities&#8217;</a></li>
</ul>



Federal Reserve Chair Jerome Powell speaks at Dec. 18, 2024 press conference following interest rate cut. Photo courtesy of the Federal Reserve.

Fed's Powell Shocks Markets After Interest Rate Cut: 'It's A New Phase'

The list of companies that have market capitalizations greater than $1 trillion continues to grow with Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) recently joining the club after its quarterly financial results sparked <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42488220/broadcom-hits-1-trillion-milestone-the-next-magnificent-tech-giant">a rally in shares.</a>



A Benzinga poll asks readers which company could be next to join the elusive club.



What Happened: Less than two years ago, investors could count on one hand the number of companies that were valued at more than $1 trillion. That changed in May 2023 when NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) became the sixth company in the club and ninth public company in history to be valued at <a href="https://www.benzinga.com/news/23/05/32630114/nvidia-becomes-ninth-company-to-hit-1-trillion-market-cap-who-could-be-next-to-join-elusive-club">more than $1 trillion.</a>



Fast forward to December 2024 and there are now 10 companies valued at $1 trillion or more. Berkshire Hathaway Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) crossed the milestone earlier this year and currently hovers near it again, with a market capitalization of $983 billion.



Here is the current list of members in the $1 trillion market capitalization club, according to <a href="https://companiesmarketcap.com/">Companiesmarketcap.com</a>:



<ul>
<li>Apple: $3.82 trillion</li>



<li>Microsoft: $3.35 trillion</li>



<li>Nvidia: $3.30 trillion</li>



<li>Amazon.com: $2.43 trillion</li>



<li>Alphabet: $2.39 trillion</li>



<li>Saudi Aramco: $1.83 trillion</li>



<li>Meta Platforms: $1.57 trillion</li>



<li>Tesla: $1.52 trillion</li>



<li>Broadcom: $1.10 trillion</li>



<li>Taiwan Semiconductor: $1.06 trillion</li>
</ul>



Benzinga recently asked who will be the next company to join the club for the first time with Berkshire Hathaway left out due to its close proximity and the fact it had already been in the club.



"Following Broadcom, which company will join the $1 trillion club next?" Benzinga asked.



The results were as follows along with the market caps at the time the poll was conducted:



<ul>
<li>Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>), $759 billion: 53%</li>



<li>Eli Lilly (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>), $757 billion: 24%</li>



<li>JPMorgan Chase (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), $675 billion: 13%</li>



<li>Visa Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>), $619 billion: 9%</li>
</ul>



Over half of readers polled said they believe Walmart will be the next company to join the $1 trillion club for the first time, followed by Eli Lilly at around one fourth of readers.



Here's a look at the current year-to-date and five-year returns of the four stocks featured in the poll:



<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="765" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18143238/output-1024x765.png" alt="" class="wp-image-698436" style="width:920px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18143238/output-1024x765.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18143238/output-300x224.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18143238/output-768x574.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18143238/output.png 1446w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



Chart created using ChatGPT.



The chart above shows that while Walmart is the top gainer year-to-date, it is Eli Lilly that has the better five-year stock growth.



Read Also: <a href="https://www.benzinga.com/etfs/specialty-etfs/24/07/39618512/nancy-pelosi-loads-up-on-more-nvidia-shares-sells-tesla-she-always-reports-right-before-a-hol">Nancy Pelosi Loads Up On More Nvidia Shares, Buys Broadcom Options </a>



Why It's Important: Broadcom stock is up 28% over the last five days and up over 113% year-to-date. The company <a href="https://www.benzinga.com/news/earnings/24/12/42472970/broadcom-reports-mixed-q4-results-eps-beat-revenues-miss-q1-guidance-in-line-with-estimates">beat fourth-quarter</a> analyst earnings per share, missed revenue estimates and provided guidance that was in-line. The guidance and positive outlook was enough to send shares higher and provide entry into the club.



Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), which was previously a member of the club, has <a href="https://www.benzinga.com/news/management/24/11/41856784/elon-musks-wealth-tops-300-billion-as-teslas-market-cap-soars-above-1-trillion">rejoined the $1 trillion club</a> thanks to impressive gains for the electric vehicle stock since Donald Trump won the 2024 presidential election.



Meta Platforms (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) is another company that was previously in the $1 trillion club years ago and rejoined the club earlier this year.



In August, <a href="https://www.benzinga.com/top-stories/24/08/40604676/warren-buffetts-berkshire-hathaway-breaks-1-trillion-poll-points-to-big-pharma-not-tech-as-next-cont">Benzinga polled readers </a>to ask which company they thought would hit the $1 trillion valuation next after Berkshire Hathaway joined.



The results were:



<ul>
<li>Eli Lilly: 43%</li>



<li>Taiwan Semiconductor: 25%</li>



<li>Tesla: 19%</li>



<li>Broadcom: 11%</li>



<li>Walmart: 3%</li>
</ul>



That poll was conducted when Eli Lilly and Taiwan Semiconductor both traded with market capitalizations of around $800 billion. Readers ended up being wrong with Eli Lilly still out of the club, while Taiwan Semiconductor, Tesla and Broadcom have all joined in recent months.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/tech/24/11/42121665/could-another-magnificent-7-stock-beat-nvidia-in-2025-poll-says-not-likely-27-pick-this-potential-winner">Could Another Magnificent 7 Stock Beat Nvidia In 2025? Poll Says Not Likely, 27% Pick This Potential Winner</a></li>
</ul>



The study was conducted by Benzinga from Dec. 16 through Dec. 17, 2024, and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 128 adults.



Image created using artificial intelligence via Midjourney.

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Who's Next To Join Tesla, Broadcom In $1 Trillion Club? Over 50% Say The World's Biggest Retailer

The Federal Reserve closed out the year with a widely anticipated 25 basis-point interest rate cut Wednesday, lowering the federal funds rate to a<a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42556652/20-etfs-primed-for-unusually-big-swings-on-fed-meeting-days"> range of 4.25%-4.5%. </a>



This marks the lowest level since January 2023 and is the third consecutive reduction in borrowing costs, following a 50-basis-point cut in September and a 25 basis-point move in November.



The decision to lower interest rates was not unanimous, as Cleveland Fed President Beth M. Hammack voted to maintain the target range unchanged at 4.5%-4.75%.



The Fed's statement showed a meaningful language change, with the addition of the words &#8220;extent&#8221; and &#8220;timing&#8221; in reference to future policy adjustments. This shift signals a more cautious approach to further rate cuts in 2025.



&#8220;In considering the extent and timing of additional adjustments, to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks,&#8221; the December Federal Open Market Committee statement said. 



<h3 class="wp-block-heading">Economic Projections Signal Fewer Rate Cuts, Higher Inflation</h3>



The Fed&#8217;s December dot plot, which illustrates each policymaker&#8217;s projected path for interest rates, indicates a median expectation for the federal funds rate to decrease to a midpoint of 3.9% by the end of 2025.



This projection suggests the potential of only two additional 0.25% rate cuts during next year, a meaningful revision from the full percentage point of cuts expected in September.



For 2026, the Fed projects the fed funds rate to fall to a midpoint of 3.4%, up from 2.9% in September.



The Fed materially raised its inflation expectations for 2025, projecting headline Personal Consumption Expenditure inflation at 2.5% compared to 2.1% in September. Core PCE inflation, which excludes volatile food and energy prices, is now forecast to reach 2.5% in 2025, up from the prior estimate of 2.2%.



The Fed reaffirmed that economic activity remains &#8220;solid&#8221; and said that, despite some easing in labor market conditions, the unemployment rate continues to be low.



Economic growth for 2025 was upwardly revised by 0.1 percentage points from September. 



Leading into the December Fed meeting, money markets priced in an 80% probability of a rate pause in January, followed by a 60% likelihood of a rate cut in March.



Overall, CME FedWatch data reflected a 70% probability of at least three rate cuts by the end of 2025.



In contrast, the CFTC-regulated betting platform Kalshi showed a more aggressive outlook, with a 98% chance of four rate reductions next year.



<h3 class="wp-block-heading">Fed&#8217;s December Summary of Economic Projections</h3>



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Variable</th><th>2024</th><th>2025</th><th>2026</th><th>2027</th><th>Longer Run</th></tr></thead><tbody><tr><td>Change in real GDP</td><td>2.4</td><td>2.1</td><td>2.0</td><td>1.9</td><td>1.8</td></tr><tr><td>Sept. projection </td><td>2.0 </td><td>2.0 </td><td>2.0 </td><td>2.0 </td><td>1.8 </td></tr><tr><td>Unemployment rate</td><td>4.2</td><td>4.3</td><td>4.3</td><td>4.3</td><td>4.2</td></tr><tr><td>Sept. projection</td><td>4.4</td><td>4.4</td><td>4.3</td><td>4.2</td><td>4.2</td></tr><tr><td>PCE inflation </td><td>2.4</td><td>2.5 </td><td>2.1</td><td>2.0 </td><td>2.0 </td></tr><tr><td>Sept. projection</td><td>2.3</td><td>2.1</td><td>2.0</td><td>2.0</td><td>2.0</td></tr><tr><td>Core PCE inflation </td><td>2.8 </td><td>2.5</td><td>2.1</td><td>2.0 </td><td></td></tr><tr><td>Sept. projection</td><td>2.6</td><td>2.2</td><td>2.0</td><td>2.0</td><td></td></tr><tr><td>Federal funds rate </td><td>4.4</td><td>3.9</td><td>3.4</td><td>3.1 </td><td>3.0</td></tr><tr><td>Sept. projection</td><td>4.4</td><td>3.4</td><td>2.9</td><td>2.9</td><td>2.9</td></tr></tbody></table><figcaption class="wp-element-caption">Source: Federal Reserve </figcaption></figure>



<h3 class="wp-block-heading">Markets Tumble After Fed </h3>



<ul>
<li>The S&amp;P 500 – as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – tumbled by 0.6% minutes following the decision, and the tech-heavy Nasdaq 100 – tracked by the Invesco QQQ Trust, Series 1 – suffered heavier losses, down by 0.7%. </li>



<li>The U.S. dollar index – as closely tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – jumped 0.7%, eyeing the highest close since November 2022. </li>



<li>Treasury yields rallied with the 10-year benchmark yield rising to 4.44%. </li>



<li>Gold prices tanked 0.9%, and silver fell even more, down 1.7%. </li>



<li>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) was 2% lower to $104,000. </li>
</ul>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42539116/fed-meetings-made-stock-traders-richer-in-2024-could-wednesday-bring-last-big-rally">Fed Meetings Made Stock Traders Richer In 2024: Could Wednesday Bring Last Big Rally?</a></li>
</ul>



Illustration created using artificial intelligence via Midjourney.

Fed Slashes Interest Rates By 0.25% As Predicted: December Dot Plot Flags Only 2 Potential Cuts In 2025

Micron Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) heads into its <a href="https://www.benzinga.com/quote/MU/earnings">first-quarter earnings</a> announcement with a mix of optimism and caution.



<h1 class="wp-block-heading">"Choppy Quarters Ahead"?</h1>



As Jake Silverman, Bloomberg Intelligence Semiconductor Analyst, puts it, "choppy quarters ahead for NAND" could pose a challenge, with pricing and inventory pressures in the smartphone and PC markets.



However, the analyst also highlights AI-related applications as a potential offset, giving Micron a chance to weather the storm.



Read Also: <a href="https://www.benzinga.com/24/12/42553082/how-to-earn-500-a-month-from-micron-stock-ahead-of-q1-earnings">How To Earn $500 A Month From Micron Stock Ahead Of Q1 Earnings</a>



<h1 class="wp-block-heading">Bullish Technical Signals Keep Optimists In The Game</h1>



Micron's stock, currently trading at $110.93, flashes bullish signs across key technical indicators. 



<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent121824&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="630" height="493" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18114211/Screenshot-2024-12-18-at-10.11.43-PM.png" alt="" class="wp-image-698134" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18114211/Screenshot-2024-12-18-at-10.11.43-PM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/18114211/Screenshot-2024-12-18-at-10.11.43-PM-300x235.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></a></figure>



<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent121824&amp;t=be2bearmibe3na1">Chart created using Benzinga Pro</a>



It sits well above short- and medium-term moving averages, with the eight-day simple moving average (SMA) at $103.94, the 20-day SMA at $102.07 and the 50-day SMA at $104.07. 



The Moving Average Convergence Divergence (MACD) at 1.15 also suggests momentum is on the bulls' side.



However, the 200-day SMA of $110.93 coincides with the price, remaining a hurdle, signaling a potential resistance level.



<h1 class="wp-block-heading">AI: A Light At The End Of The NAND Tunnel?</h1>



The market will be laser-focused on how Micron balances the dynamics of two divergent forces:



<ol>
<li>NAND Weakness: Elevated inventories and pricing pressure.</li>



<li>AI Opportunities: As Silverman notes, secular growth in AI applications could provide a much-needed boost, potentially offsetting the broader NAND market challenges.</li>
</ol>



<h1 class="wp-block-heading">What's Expected?</h1>



Analysts estimate an EPS of $1.76 and revenue of $8.72 billion. But beyond these numbers, investors will be scrutinizing the company's guidance. Can Micron sustain its AI-driven growth momentum, or will "choppy quarters" in NAND drag it down?



Read Next: 



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<li><a href="https://www.benzinga.com/trading-ideas/previews/24/12/42549182/us-stocks-to-open-higher-as-rate-cut-expectations-surge-all-eyes-on-dow-jones-to-break-its-9-day-losing-streak">US Stocks To Open Higher As Rate Cut Expectations Surge: All Eyes On Dow Jones To Break Its 9-Day Losing Streak</a></li>
</ul>



Photo: NPS_87 on Shutterstock

Technicals

Previews

Micron Earnings: Will AI Growth Outweigh 'Choppy' Memory Market?

Cloud-based private company Databricks isn't in a <a href="https://www.benzinga.com/general/politics/24/03/37896102/nancy-pelosi-cathie-wood-nvidia-now-share-investments-in-this-pre-ipo-high-growth-artificial-int">rush to go public</a>.



What Happened: While the San Francisco-based company is experiencing growth and was recently valued at $62 billion, 2024 wasn&#8217;t the year to file an initial public offering, Databricks CEO and co-founder Ali Ghodsi said at the recent <a href="https://www.axios.com/2024/12/10/watch-axios-event-ai-sf-summit-2024">Axios </a>AI Summit.



"This year was an election year. We wanted to get some stability — people are worried about interest rates, inflation,&#8221; he said, as reported by <a href="https://techcrunch.com/2024/12/17/its-dumb-to-ipo-this-year-databricks-ceo-explains-why-hes-waiting-to-go-public/">TechCrunch</a>. &#8220;So we said &#8216;Look, it's dumb to IPO this year,&#8217; so we're definitely going to wait.&#8221;



Ghodsi said the recent Series J round allowed some early employees the ability to cash out. The funding round, which was large at $10 billion, could have been larger based on demand, according to Ghodsi.



"I saw this Excel sheet where they kept a tally of all the people that want to invest. It was $19 billion of interest, and I almost fell off the chair,&#8221; he said. 



The original goal was to raise $3 billion to $4 billion, before the company pushed the funding amount higher.



While Databricks didn't choose the IPO route in 2024, the company could be one of many to go public next year.



"The earliest theoretical possibility of an IPO would be next year,&#8221; Ghodsi said, noting that the IPO could also push out to 2026 instead. It's less important to go public now than in past years, he explained.



Ghodsi also recognizes that high interest in artificial intelligence companies and ballooning valuations could signal a potential bubble for the sector.



"I mean, it's peak AI bubble. It doesn't take a genius to know that a company with five people which has no product, no innovation, no IP — just recent grads — (is not) worth hundreds of millions, sometimes billions."



Billion-dollar valuations on AI startups that have no product signal a bubble, Ghodsi added.



Check This Out: 



<ul>
<li>Lawmakers Made Huge Investments This Year. <a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent121824">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
</ul>



Why It's Important: A potential IPO of Databricks could come with high investor interest thanks to its high growth and <a href="https://www.benzinga.com/news/24/06/39305440/ai-startup-which-counts-nancy-pelosi-cathie-wood-and-nvidia-among-its-investors-forecasts-2-4b-annua">popular backers</a>, including Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), U.S. Rep. Nancy Pelosi (D-Calif.) and Cathie Wood.



Pelosi and her venture capitalist husband Paul Pelosi took a $1 million to $5 million stake in the company according to a filing from the former Speaker earlier this year.



Pelosi represents District 11 of California in the U.S. House of Representatives. The region includes San Francisco, where Databricks is based.



Wood and Ark Invest own a stake in the company through the Ark Venture Fund (ARKVX), which <a href="https://www.benzinga.com/markets/cryptocurrency/22/02/25420755/ark-funds-launching-new-fund-that-could-invest-in-private-companies" target="_blank" rel="noreferrer noopener">launched in 2022</a>&nbsp;and gives investors access to private companies. Databricks is the tenth largest <a href="https://www.ark-funds.com/funds/arkvx#hold">holding </a>in the fund as of Nov. 30, representing 3.6% of assets.



Nvidia has been an investor and partner in the company for several years. Companies that have gone public via SPAC merger or IPO, and later disclose Nvidia as an investor, have <a href="https://www.benzinga.com/news/24/07/39860370/serve-robotics-stock-rises-after-nvidia-discloses-10-stake">seen shares rise</a> with increased investor interest.



Databricks&nbsp;<a href="https://www.databricks.com/company/newsroom/press-releases/databricks-raises-series-i-investment-43b-valuation#:~:text=San%20Francisco%2C%20CA%20%E2%80%94%20September%2014,price%20per%20share%20at%20%2473.50." target="_blank" rel="noreferrer noopener">raised&nbsp;</a>$500 million in funding in September 2023 with the company valued at $43 billion.&nbsp;T. Rowe Price Group Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TROW#NASDAQ">TROW</a>) led the investment round.



Other investors in the <a href="https://www.benzinga.com/startups/23/10/35065151/databricks-valuation-skyrockets-to-43-billion-techs-new-powerhouse-backed-by-nvidia-and-capital-one">September funding round</a> included&nbsp;Andreessen Horowitz, Baillie Gifford, ClearBridge Investments, Fidelity Management, Franklin Templeton, Counterpoint Global, Ontario Teachers&#8217; Pension Plan&nbsp;and&nbsp;Capital One Financial Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>).



Databricks competes with Snowflake Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNOW#NYSE">SNOW</a>), which went public at $120 per share in 2020. The company saw shares open at $245 due to huge demand. Snowflake stock is down 11% year-to-date.



Ghodsi hinted that Databricks is focusing on its rivalry with Snowflake to gain new business.



"We had a program called ‘SnowMelt.' We were going after Snowflake and we demonized them, but that's behind us," Ghodsi said at the Axios event. Databricks is also working on competing with larger companies like Salesforce (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) and Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) according to the report.



Data and AI will be more important in people's lives going forward and Databricks is well-positioned to take advantage of this trend, Ghodsi predicts.



The company expects to hit positive free cash flow for the first time and have a $3 billion revenue run rate for the fiscal year ending Jan. 31.



Read Next: 



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<li><a href="https://www.benzinga.com/24/12/42538504/biden-endorses-ban-of-congressional-stock-trading-nobody-in-the-congress-should-be-able-to-make-money-in-the-stock-market-while-in-office">Biden Backs Congressional Stock Trading Ban: &#8216;Inside Track&#8217; To Wealth</a></li>
</ul>



Image: Shutterstock

Politics

IPOs

MSFT

SNOW

TROW

Nancy Pelosi, Cathie Wood, Nvidia-Backed Databricks Waits To Go Public: 'Dumb To IPO' In Election Year

Wall Street inched marginally higher during Wednesday morning trading in New York, with traders remaining on edge ahead of the eagerly anticipated Federal Reserve meeting scheduled for 2 p.m. ET, followed by Fed Chair Jerome Powell&#8216;s press conference <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42554114/all-eyes-on-december-fed-meeting-as-traders-await-interest-rate-projections">at 2:30 p.m. ET.</a>



The Fed is widely expected to reduce interest rates by 25 basis points to a target range of 4.25%-4.50%. Yet, the market&#8217;s reaction is likely to hinge on the updated economic projections and Powell&#8217;s commentary on future policy direction.



The semiconductor sector rebounded strongly, with the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) climbing 0.9% after a 1.6% dip on Tuesday. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) surged 3.6%, on track to mark its best single-day gain in a month and to snap a four-day losing streak. The jump followed Nvidia&#8217;s announcement of a new $249 Jetson computer for AI applications, significantly cheaper than its predecessor priced at $499.



In currency markets, the U.S. dollar edged 0.2% higher, with the DXY index breaking above 107, its highest level in three weeks. Treasury yields were steady, with the 10-year yield holding at 4.40% as traders awaited the Fed&#8217;s decision.



Commodities presented a mixed picture: gold slipped 0.4%, while WTI crude gained 1.2%, supported by a larger-than-expected drawdown in U.S. crude inventories.



The cryptocurrency market took a breather after recent strong gains, with Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) down 1.8%, trading below the $105,000 mark.



<h1 class="wp-block-heading">Wednesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day % chg</td></tr><tr><td>Dow Jones</td><td>43,597.75</td><td>0.3%</td></tr><tr><td>S&amp;P 500</td><td>6,063.18</td><td>0.2%</td></tr><tr><td>Russell 2000</td><td>2,337.19</td><td>0.1%</td></tr><tr><td>Nasdaq 100</td><td>22,010.91</td><td>0.0%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 12:10 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent121824&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 0.2% to $605.62.</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;rose 0.4% to $437.08.</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>) held steady at $535.84.</li>



<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) edged 0.2% up to $231.42.</li>



<li>The&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up by 0.4%; the&nbsp;Real Estate Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) lagged, down 0.4%.</li>
</ul>



<h1 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h1>



<ul>
<li>Micron Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) rose 2.4% ahead of its fiscal first-quarter earnings report. Analysts anticipate adjusted earnings of $1.76 per share on revenue of $8.7 billion for the quarter.</li>



<li>Stocks reacting to earnings reports included General Mills Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>), down 3%; Jabil Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JBL#NYSE">JBL</a>), up 9.6% and Heico Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HEI#NYSE">HEI</a>), down 8.7%.</li>
</ul>



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<li><a href="https://www.benzinga.com/news/econ-s/24/12/42544060/how-to-invest-1000-in-regional-banks-for-2025-top-wall-street-analyst-reveals-his-top-picks">How To Invest $1,000 In Regional Banks For 2025: Top Wall Street Analyst Reveals His Top Picks</a></li>
</ul>



Photo: Shutterstock

Macro Economic Events

SOXX

XLRE

Stocks Inch Up Ahead Of Fed Decision, Nvidia Set To Snap Four Straight Losses, Bitcoin Slips: What's Driving Markets Wednesday?

As markets brace for the Federal Reserve's final policy meeting of the year, scheduled at 2:00 p.m. Wednesday, Goldman Sachs highlighted 20 exchange-traded funds (ETFs) that have historically shown outsized <a href="https://www.benzinga.com/topic/federal-reserve">moves around Fed decision days</a>.



While a 25-basis-point rate cut to a target range of 4.25%-4.50% is widely anticipated, the market's focus is on the Fed's forward guidance, particularly the Summary of Economic Projections (SEP) and the updated &#8220;dot plot.&#8221;



Following December's expected cut, Goldman Sachs projects a more measured pace of easing next year, forecasting rate cuts in March, June, and September, with the terminal rate seen at 3.50%-3.75%.



Read Also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42554114/all-eyes-on-december-fed-meeting-as-traders-await-interest-rate-projections">All Eyes On December Fed Meeting As Traders Await Interest Rate Projections</a>



<h3 class="wp-block-heading">Market Dynamics Around Fed Days</h3>



U.S. equity markets have displayed strong short-term gains during Fed meeting weeks in 2024. 



Investors employing a simple strategy of buying the S&amp;P 500 index at market close before a Federal Open Market Committee (FOMC) announcement and selling at close the following day have captured median returns of 1.1% across the past seven meetings.



Yet those extending the trade horizon to 15 sessions post-Fed meeting have enjoyed significantly larger average gains of 3.29%, more than double the short-term returns. Notably, every Fed meeting this year has resulted in positive 15-day returns.



"We observe that U.S. banking ETFs, such as SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>) and SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>), have seen unusually large moves on FOMC days since 2022" Goldman analysts wrote in a recent note.



For bond-focused investors, the report highlights consistent post-meeting gains in high-yield and investment-grade ETFs like iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HYG#NYSE">HYG</a>) and iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LQD#NYSE">LQD</a>).



Meanwhile, energy-focused ETFs, such as the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), have seen negative reactions. 



<h3 class="wp-block-heading">ETFs Showing Heightened Fed-Day Moves</h3>



Here's Goldman Sachs' list of 20 ETFs with the largest absolute moves – which include both positive and negative swing – on FOMC days:



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>ETF Name</th><th>Focus</th><th>Average Absolute Move on FOMC since 2022</th><th>Average Absolute Move (Last 3 FOMC events)</th></tr></thead><tbody><tr><td>SPDR S&amp;P Regional Banking ETF </td><td>Regional Banking</td><td>2.5%</td><td>1.5%</td></tr><tr><td>VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>)</td><td>Semiconductor</td><td>2.4%</td><td>3.7%</td></tr><tr><td>iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>)</td><td>Semiconductor</td><td>2.4%</td><td>3.3%</td></tr><tr><td>SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>)</td><td>US Large Banks</td><td>2.2%</td><td>1.3%</td></tr><tr><td>SPDR S&amp;P Biotech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XBI#NYSE">XBI</a>)</td><td>Biotech</td><td>2.0%</td><td>0.3%</td></tr><tr><td>United States Oil Fund </td><td>Oil</td><td>1.9%</td><td>2.0%</td></tr><tr><td>Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td><td>Technology</td><td>1.9%</td><td>2.3%</td></tr><tr><td>iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>)</td><td>Silver</td><td>1.7%</td><td>2.4%</td></tr><tr><td>Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)</td><td>Nasdaq 100</td><td>1.7%</td><td>1.7%</td></tr><tr><td>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td><td>Discretionary</td><td>1.6%</td><td>1.0%</td></tr><tr><td>iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>)</td><td>Russell 2000</td><td>1.5%</td><td>0.3%</td></tr><tr><td>SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)</td><td>S&amp;P 500</td><td>1.2%</td><td>0.9%</td></tr><tr><td>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</td><td>S&amp;P 500</td><td>1.2%</td><td>0.9%</td></tr><tr><td>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td><td>Financial</td><td>1.1%</td><td>0.7%</td></tr><tr><td>SPDR Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>)</td><td>Gold</td><td>0.9%</td><td>1.4%</td></tr><tr><td>iShares J.P. Morgan USD Emerging Markets Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EMB#NASDAQ">EMB</a>)</td><td>EM Bond</td><td>0.8%</td><td>0.6%</td></tr><tr><td>iShares iBoxx $ High Yield Corporate Bond ETF </td><td>HY Corp Bond</td><td>0.6%</td><td>0.3%</td></tr><tr><td>iShares iBoxx $ Investment Grade Corporate Bond ETF </td><td>IG Corp Bond</td><td>0.6%</td><td>0.7%</td></tr><tr><td>iShares 7-10 Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IEF#NASDAQ">IEF</a>)</td><td>7-10 Year Treasury</td><td>0.6%</td><td>0.7%</td></tr><tr><td>iShares TIPS Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TIP#NYSE">TIP</a>)</td><td>TIPS Bond</td><td>0.5%</td><td>0.4%</td></tr><tr><td>Average</td><td></td><td>1.5%</td><td>1.3%</td></tr></tbody></table></figure>



Check Out: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42539116/fed-meetings-made-stock-traders-richer-in-2024-could-wednesday-bring-last-big-rally">Fed Meetings Made Stock Traders Richer In 2024: Could Wednesday Bring Last Big Rally?</a></li>
</ul>



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Emerging Market ETFs

20 ETFs Primed For Unusually Big Swings On Fed Meeting Days

The Federal Reserve is set to wrap up 2024 with its last Federal Open Market Committee (FOMC) meeting on Wednesday, delivering what's expected to be its third <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">consecutive interest rate cut. </a>



Policymakers are expected to lower the federal funds rate by 0.25%, bringing it to a target range of 4.25%-4.50%.



While the move has been widely anticipated, traders are less concerned about the cut itself and more focused on the Fed's forward-looking guidance — particularly the updated Summary of Economic Projections (SEP) and the closely watched "dot plot."



Here&#8217;s what you need to know. 



<h3 class="wp-block-heading">December&#8217;s Dot Plot, Inflation Forecasts Likely To Show Hawkish Revisions</h3>



In September, the Fed's dot plot – a chart that shows where each policymaker thinks interest rates should be in the future –&nbsp;projected the federal funds rate would finish 2024 at a median level of 4.4%. 



The expected 0.25% cut at this meeting aligns with that projection, leaving little surprise on the surface. 



Yet, the December SEP will offer a glimpse into the Fed's plans for 2025 and beyond, potentially reshaping market expectations.



Back in September, the Fed forecasted 100 basis points of rate cuts in 2025, signaling four 0.25% reductions over the year. But with recent data showing hotter-than-expected inflation and stronger economic growth, policymakers are expected to scale back these projections. 



Analysts are split on a downward revision of 25 to 50 basis points, implying only two or three rate cuts in 2025. This adjustment would reflects a more cautious approach by the Fed. 



Fed futures – which reflects market-based interest rate expectations – currently assign a 74% chance on two rate cuts by December 2025, and 26% odds indicating three or more cuts, as per CME FedWatch.



<h4 class="wp-block-heading">Fed&#8217;s Summary of Economic Projections – September 2024</h4>



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Variable</th><th>2024</th><th>2025</th><th>2026</th><th>2027</th><th>Longer Run</th></tr></thead><tbody><tr><td>Change in real GDP</td><td>2.0</td><td>2.0</td><td>2.0</td><td>2.0</td><td>1.8</td></tr><tr><td>Unemployment rate</td><td>4.4</td><td>4.4</td><td>4.3</td><td>4.2</td><td></td></tr><tr><td>PCE inflation</td><td>2.3</td><td>2.1</td><td>2.0</td><td>2.0</td><td>2.0</td></tr><tr><td>Core PCE inflation</td><td>2.6</td><td>2.1</td><td>2.0</td><td>2.0</td><td></td></tr><tr><td>Federal funds rate</td><td>4.4</td><td>3.4</td><td>2.9</td><td>2.9</td><td>2.9</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">Inflation Forecasts: The Fed's Roadmap To 2% At Stake</h3>



Inflation remains the Fed's top concern. 



In September, the Fed projected that the PCE price index would decline from 2.3% in 2024 to 2.1% in 2025, eventually hitting the 2% target in 2026. Core PCE inflation — its preferred inflation gauge — was expected to fall from 2.6% in 2024 to 2.1% in 2025.



If the updated projections indicate a slower return to the 2% target, it could signal a prolonged pause in rate cuts, underscoring the Fed's struggle to balance its inflation mandate with economic growth. 



Markets will be on high alert for any language from Fed Chair Jerome Powell that hints at inflation's persistence.



<h3 class="wp-block-heading">Market Dynamics And Powell's Tightrope</h3>



Fed meetings this year have delivered positive reactions by stocks. 



Buying the S&amp;P 500 index – as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – at market close the day before a Fed meeting and selling the day after has yielded a median gain of 1.1% over the last seven meetings. Extending the holding period to 15 days boosts the average profit to 3.29%, more than double the one-day return.



Read also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42539116/fed-meetings-made-stock-traders-richer-in-2024-could-wednesday-bring-last-big-rally">Fed Meetings Made Stock Traders Richer In 2024: Could Wednesday Bring Last Big Rally?</a>



Yet, Powell has a delicate task ahead. 



At his last public appearance on Dec. 4, Powell acknowledged the Fed's improved growth outlook but cautioned that inflation has proven more persistent than expected. 



"We can afford to be a little more cautious as we try to find neutral," he said, striking a tone that hints at flexibility but leaves markets guessing.



The press conference following the December meeting will be pivotal. Powell must thread the needle between reassuring investors about disinflation progress and addressing inflation's recent uptick. 



A hawkish tone — emphasizing inflation risks — could jolt markets with renewed volatility, while a dovish stance might fuel optimism and risk-taking.



Bottom line, the last Fed meeting of the year isn't just about the interest rate cut, as the real action lies in the updated Summary of Economic Projections and Powell's remarks.



Investors will be dissecting every word for clues about the Fed's strategy heading into 2025. 



If Powell strikes the right balance, markets could rally into the new year. If not, expect a rollercoaster ride as traders recalibrate their expectations for the Fed's next moves.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42489039/feds-december-meeting-could-crush-rate-cut-optimism-for-2025">Fed&#8217;s December Meeting Could Crush Rate Cut Optimism For 2025</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

All Eyes On December Fed Meeting As Traders Await Interest Rate Projections

Micron Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) will release earnings for its first quarter, after the <a href="https://www.benzinga.com/quote/MU/earnings">closing bell on Wednesday, Dec. 18.</a>



Analysts expect the Boise, Idaho-based company to report quarterly earnings at $1.77 per share, versus a year-ago loss of 95 cents per share. Micron projects to report quarterly revenue of $8.71 billion, compared to $4.73 billion a year earlier, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.



The company has beaten analyst revenue estimates in six straight quarters and seven of the last 10 quarters overall.



With the recent buzz around Micron, some investors may be eyeing potential gains from the company's dividends too. As of now, Micron offers an annual dividend yield of 0.42%. That&#8217;s a quarterly dividend amount of 11.5 cents per share (46 cents a year).



So, how can investors exploit its dividend yield to pocket a regular $500 monthly?



To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $1,551,460 or around 14,286 shares. For a more modest $100 per month or $1,200 per year, you would need $310,270 or around 2,857 shares.



To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.42 in this case). So, $6,000 / $0.42 = 14,286 ($500 per month), and $1,200 / $0.42 = 2,857 shares ($100 per month).



Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.



How that works: The dividend yield is computed by dividing the annual dividend payment by the stock&#8217;s current price.



For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).



Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.



MU Price Action: Shares of Micron gained 0.3% to close at $108.60 on Tuesday.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="How to Find Dividend Stocks: Scan, Analyze, and Capture with Benzinga Pro" width="500" height="281" src="https://www.youtube.com/embed/pVF0O2lsEH4?start=1&#038;feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



Read More: 



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<li><a href="https://www.benzinga.com/24/12/42531171/top-2-utilities-stocks-that-could-sink-your-portfolio-this-quarter">Top 2 Utilities Stocks That Could Sink Your Portfolio This Quarter</a></li>
</ul>



Image: Shutterstock

Long Ideas

How To Earn $500 A Month From Micron Stock Ahead Of Q1 Earnings

Former BitMEX CEO Arthur Hayes on Wednesday issued a stark warning about a potential "harrowing dump" in cryptocurrency markets around Donald Trump's <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/42232116/dogecoin-to-hit-69-cents-by-inauguration-day-polymarket-traders-are-not-convinced">inauguration on Jan. 20, 2025.</a>



What Happened: Hayes argues that overly optimistic investor expectations for Trump's economic policies will clash with the slow pace of real-world change, leading to a sharp sell-off.



In his latest blog post <a href="https://cryptohayes.substack.com/p/trump-truth?utm_campaign=post&amp;utm_medium=web&amp;triedRedirect=true">titled</a> &#8220;Trump Truth&#8221;, Hayes outlines his outlook for the crypto market as Trump prepares to assume office for his second term.



Hayes believes that while Trump's policies are likely to favor asset price inflation and a weaker U.S. dollar in the long term, immediate results are unlikely. 



"The market believes that Trump and his people can immediately achieve economic and political miracles," Hayes wrote. He warns that the crypto market will face a reality check, saying, "I believe the crypto markets will experience a harrowing dump around Trump's January 20th 2025 inauguration day."



Hayes explains that Trump has only one year to implement any significant policy changes before mid-term campaigning begins in late 2025, which will limit his administration's ability to enact meaningful reforms. 



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42537836/litecoin-hbar-etfs-could-come-before-xrp-solana-heres-why">Litecoin, HBAR ETFs Could Come Before XRP, Solana: Here&#8217;s Why</a>



He added that <a href="https://www.benzinga.com/news/24/12/42257531/heres-how-ray-dalio-thinks-trumps-second-term-could-reshape-the-us-and-the-world">structural economic issues</a> cannot be solved within such a short timeframe, setting up investors for disappointment.



Despite predicting short-term volatility, Hayes remains confident in the broader bull market for cryptocurrencies, particularly Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>). 



He believes Trump's policy goals—including weakening the U.S. dollar to reindustrialize America—will ultimately increase the global supply of fiat currency and drive demand for hard assets like Bitcoin. 



"Trump Truth shows me the structural deficiencies of the global order… The best way to maximize returns is to own Bitcoin and crypto," he emphasized.



While Hayes acknowledges the risks of timing the market, he outlined his firm Maelstrom's strategy of reducing exposure ahead of the inauguration, with plans to buy back positions during the anticipated sell-off. 



"Maelstrom will be lightening up on certain positions in advance, hoping to rebuy some core positions at lower prices sometime in 1H25," he wrote.



What&#8217;s Next: Hayes concluded by cautioning traders against underestimating the challenges Trump will face and stressed that, while a near-term correction is likely, he remains committed to long-term crypto investments.



"We are committed to admitting defeat if the bull market steamrolls through January 20th, licking our wounds, and getting back on the bull."



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42526592/bitcoin-ethereum-etfs-see-688m-net-inflows-analysts-target-124000">Bitcoin, Ethereum ETFs See $688M Net Inflows, Analysts Target $124,000</a></li>
</ul>



Image: Shutterstock

Trump Inauguration Could Coincide With A 'Harrowing Dump' For Crypto, Arthur Hayes Warns

The global fund managers increased their allocation to <a href="https://www.benzinga.com/24/12/42527883/top-3-financial-stocks-which-could-rescue-your-portfolio-for-december">financial stocks</a>, which include both banks and insurance companies, to an all-time high in December.



What Happened: According to the Bank of America&#8217;s Global Fund Manager Survey, as reported <a href="https://finance.yahoo.com/news/investors-allocation-to-us-stocks-hits-record-high-amid-super-bullish-sentiment-bofa-survey-164349535.html">by</a> Yahoo Finance, investors&#8217; allocation to banks increased by 23% points in December compared to the previous month. This resulted in global fund managers being 41% overweight on banking stocks in December, which is the highest since January 2022.



Similarly, the allocation to insurance companies surged by 15% points month-on-month. This represented an overweight position of 20% within the sectors by the global fund managers. It is the highest since February 2014.



Furthermore, the investor positioning relative to their historical long-term positions increased within the financial universe, followed by the U.S. stocks and utilities, according to the BofA survey.



The investors were underweight with respect to their exposure to cash, Eurozone stocks, staples, and bonds.



See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42531373/financial-stocks-near-record-year-could-trump-deregulation-fuel-bigger-gains-in-2025">Financial Stocks Near Record Year: Could Trump Deregulation Fuel Bigger Gains In 2025?</a>



What Are The Analysts Saying



Mario Georgiou, executive director, head of investments at InCred Global Wealth U.K., in an <a href="https://www.benzinga.com/24/11/42158682/donald-trumps-win-positive-for-financials-energy-sector-as-pro-growth-effects-will-outweigh-inflationary-pressures-says-analyst">exclusive conversation with Benzinga</a>, described tax cuts and deregulation as tailwinds to the markets. He considers inflationary policies such as tariffs and immigration impacts as headwinds, leading to a steepening yield curve, and higher term premiums.



"Financials offer an attractive risk-reward and that this recent post-election rally has room to run," added Georgiou. According to him "Financials are not only well positioned to capture the benefits of the above-mentioned Trump tailwinds, but are also less impacted / would even benefit from the Trump headwinds."



Bank of America's global economics team recently summarized the sentiment, stating, "Pro-growth policies like deregulation of financial services and energy, as well as lower taxes, are boosting market sentiment and asset prices."



According to Goldman Sachs analyst Richard Ramsden, large-cap banks remain optimistic about the economy. &#8220;Healthy consumer spending trends and strong corporate balance sheets have supported a constructive outlook,&#8221; Ramsden said in a recent note.



The top-performing financial stocks of 2024 include Robinhood Markets, Interactive Brokers Group, Coinbase Global, KKR &amp; Co, and Wells Fargo.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Company</td><td>YTD Performance</td></tr><tr><td>Robinhood Markets Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>)</td><td>236.54%</td></tr><tr><td>Interactive Brokers Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBKR#NASDAQ">IBKR</a>)</td><td>111.59%</td></tr><tr><td>Coinbase Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>)</td><td>98.65%</td></tr><tr><td>KKR &amp; Co Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KKR#NYSE">KKR</a>)</td><td>85.99%</td></tr><tr><td>Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>)</td><td>43.54%</td></tr><tr><td>Blackstone Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BX#NYSE">BX</a>)</td><td>42.75%</td></tr><tr><td>M&amp;T Bank Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTB#NYSE">MTB</a>)</td><td>41.08%</td></tr><tr><td>JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>)</td><td>38.52%</td></tr><tr><td>Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>)</td><td>36.04%</td></tr><tr><td>Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>)</td><td>34.09%</td></tr><tr><td>Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>)</td><td>32.89%</td></tr><tr><td>Fifth Third Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FITB#NASDAQ">FITB</a>)</td><td>29.53%</td></tr><tr><td>PNC Financial Services Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>)</td><td>26.71%</td></tr><tr><td>Arthur J. Gallagher &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AJG#NYSE">AJG</a>)</td><td>25.74%</td></tr><tr><td>HSBC Holdings Plc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSBC#NYSE">HSBC</a>)</td><td>21.24%</td></tr><tr><td>Prudential Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRU#NYSE">PRU</a>)</td><td>13.69%</td></tr><tr><td>American International Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AIG#NYSE">AIG</a>)</td><td>3.46%</td></tr></tbody></table><figcaption class="wp-element-caption">Note: Data as of market close on Dec. 17, 2024</figcaption></figure>



The iShares U.S. Financial ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) has risen 31.35% year-to-date.



Similarly, other financial-focused ETFs have seen strong gains. The Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) surged 30.3%, while the Vanguard Financials Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFH#NYSE">VFH</a>) climbed 30.89%.



Read Next:



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<li><a href="https://www.benzinga.com/24/12/42546991/dows-rare-nine-day-decline-falls-behind-267-single-day-crashes-since-1900">Dow&#8217;s Rare Nine-Day Decline Falls Behind 267 Single-Day Crashes Since 1900: Is Tech Shift To Blame?</a></li>
</ul>



Photo courtesy: Shutterstock

Market Summary

General

COIN

FITB

HOOD

HSBC

IBKR

Fund Managers Increase Allocation To Banking And Insurance Stocks In December: Here Are The Best Performing Financial Stocks In 2024

U.S. stock futures climbed on Wednesday in premarket hours as Wall Street awaits the Federal Reserve&#8217;s final interest rate decision for 2024 and its monetary policy forecasts for 2025.



On Tuesday, the Dow Jones index fell for the <a href="https://www.benzinga.com/news/earnings/24/12/42546507/dow-records-longest-losing-streak-since-1978-nvidia-declines-fear-greed-index-in-neutral-zone">ninth session in a row</a> to record its longest losing streak since 1978.



The 10-year and two-year Treasury notes yielded 4.40% and 4.25%, respectively. The Federal Open Market Committee will announce its decision later in the day after a two-day meeting.



It is widely expected to announce another interest rate reduction at the conclusion of their meeting on Wednesday. Expectations of a 25 basis point rate cut rose to 95.4%, from 58.7% a month ago, according <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">to</a> CME Group&#8217;s FedWatch tool.



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&#8217;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>0.24%</td></tr><tr><td>S&amp;P 500</td><td>0.28%</td></tr><tr><td>Dow Jones</td><td>0.24%</td></tr><tr><td>Russell 2000</td><td>0.49%</td></tr></tbody></table></figure>



In premarket trading on Wednesday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was up 0.25% to $605.80 and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.24% to $537.09, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.



Cues From The Last Session



The <a href="https://www.benzinga.com/news/earnings/24/12/42546507/dow-records-longest-losing-streak-since-1978-nvidia-declines-fear-greed-index-in-neutral-zone">Dow Jones Industrial Average </a>extended its losing streak to nine consecutive sessions on Tuesday, its longest downturn since 1978. This negative trend weighed on the broader U.S. stock market.



While Tesla shares rallied after a positive analyst upgrade, Nvidia experienced a slight decline.



On the economic front, U.S. retail sales exceeded expectations in November, suggesting increased consumer spending. However, industrial production contracted, signaling a slowdown in manufacturing activity.



The S&amp;P 500 saw a broad-based decline, with industrials, energy, and financials leading the losses. Consumer discretionary stocks, on the other hand, bucked the trend and closed higher.



At the close of trading, the Dow Jones Industrial Average had fallen by approximately 268 points to 43,449.90. The S&amp;P 500 and Nasdaq Composite also ended the day lower, declining by 0.39% and 0.32%, respectively.



<figure class="wp-block-table"><table><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-0.32%</td><td>20,109.06</td></tr><tr><td>S&amp;P 500</td><td>-0.39%</td><td>6,050.61</td></tr><tr><td>Dow Jones</td><td>-0.61%</td><td>43,449.90</td></tr><tr><td>Russell 2000</td><td>-1.18%</td><td>2,334.08</td></tr></tbody></table></figure>



Insights From Analysts



The Dow Jones Industrial Average index last saw a nine-day fall for the first time since February 1978, according to FactSet data. However, the index has seen steeper crashes in a single day as compared to the cumulative erosion it has witnessed over these nine days.



Dow Jones has fallen nearly 3.47% to 43,449.90 points over the last nine days since Dec. 4, when it was at 45,014.04 points.



&#8220;Since 1900, I see 267 times it lost more than 3.47% in a single day,&#8221; said Ryan Detrick, chief market strategist at Carson Research.



<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 Dow is down 3.47% the past 9 days (and lower all 9 of them). Since 1900, I see 267 times it lost more than 3.47% in a single day.&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1869205905780388184?ref_src=twsrc%5Etfw">December 18, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



According to BlackRock, the global economy is undergoing a transformation that could keep shifting the long-term economic trend. They suggest that investors should shift to distinct drivers of risk and return.



&#8220;That creates a wide range of potential outcomes and a need to use scenarios to guide portfolio construction, we think. Government bonds have become a less reliable cushion against risk asset selloffs in this new regime. So investors should consider new diversifiers like gold and bitcoin – not to replace bonds, but to get exposure to distinct drivers of risk and return.&#8221;



&#8220;We see the AI buildout and adoption creating opportunities across sectors,&#8221; BlackRock&#8217;s note added.



&#8220;Overall, with so much uncertainty around tariffs and inflation, bond market volatility is unlikely to fade anytime soon,&#8221; said JPMorgan in their note.



&#8220;The week's economic data releases appeared to be enough for markets to solidify expectations for a rate cut at the upcoming Federal Reserve meeting,&#8221; said T Rowe Price in their weekly note.



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures" target="_blank" rel="noreferrer noopener">How To Trade Futures</a>



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 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>
</ul>



Stocks In Focus:



<ul>
<li>Parazero Technologies Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PRZO#NASDAQ">PRZO</a>) was up 71.24% in premarket trading after it regained Nasdaq compliance.</li>



<li>Nukkleus Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NUKK#NASDAQ">NUKK</a>) gained 45.37% after the company announced it acquired a 51% controlling stake in Star 26 Capital.</li>



<li>Corvus Pharmaceuticals Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRVS#NASDAQ">CRVS</a>) rose 17.73% in premarket after it said that it would report interim data from its Phase 1 clinical trial evaluating Soquelitinib in patients with moderate to severe atopic dermatitis, on Dec. 18.</li>



<li>Applied DNA Sciences, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APDN#NASDAQ">APDN</a>) fell 13.04% in pre-market trading after reporting weak quarterly sales.</li>



<li>Quantum Computing Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QUBT#NASDAQ">QUBT</a>) was up 13.28% after it received a NASA contract doe Goddard Space Flight Center to use its entropy quantum optimization machine to help the space agency&#8217;s imaging.</li>



<li>Investors are awaiting earnings results from General Mills, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GIS#NYSE">GIS</a>), Jabil Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JBL#NYSE">JBL</a>, )) and Micron Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) today.</li>
</ul>



Commodities, Bonds And Global Equity Markets:



Crude oil futures were lower in the early New York session by 0.03% to hover around $70.08 per barrel.



The gold spot index rose by 0.08% to $2,664.21 per ounce. The dollar index was up 0.04% to 106.997 level.



Asian markets were mixed on Wednesday, as Hong Kong&#8217;s Hang Seng, China&#8217;s CSI 300, and South Korea&#8217;s Kospi index advanced. Whereas, Japan&#8217;s Nikkei 225, India&#8217;s S&amp;P BSE Sensex, and Australia&#8217;s ASX 200 index declined. Most European markets advanced.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/24/12/42548385/fund-managers-increase-allocation-to-banking-and-insurance-stocks-in-december-here-are-the-best-performing-financial-stocks-in-2024">Fund Managers Increase Allocation To Banking And Insurance Stocks In December: Here Are The Best Performing Financial Stocks In 2024</a></li>
</ul>



Photo courtesy: Wikimedia

Futures

Pre-Market Outlook

APDN

CRVS

NUKK

PRZO

QUBT

US Stocks To Open Higher As Rate Cut Expectations Surge: All Eyes On Dow Jones To Break Its 9-Day Losing Streak

The U.S. has the world&#8217;s largest companies by market capitalization and about two-thirds of the MSCI World Index is dominated by companies based out of America.



What Happened: U.S.-based companies ranking among the world&#8217;s top ten firms by market capitalization include Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</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>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), and Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>).



These magnificent seven firms along with Broadcom are the beneficiaries of the U.S. tech and AI boom. The remaining two non-U.S. firms that make up the top ten include Saudi Arabian Oil Co and Taiwan Semiconductor Mfg Co Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSMC#NYSE">TSMC</a>).



According to an X post by Kevin Gordon, director and senior investment strategist at Charles Schwab, &#8220;Such an imbalance has not been seen since the late 1980s.&#8221; The data shared by him shows nine out of the top ten companies by market capitalization were based out of the U.S. in the 1980s.



"…the US, with 4% of the world's population, roughly a quarter of global GDP and a third of global profits, now accounts for more than two-thirds of the MSCI World index's capitalization. Such an imbalance has not been seen since the late 1980s…,&#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">"…the US, with 4% of the world's population, roughly a quarter of global GDP and a third of global profits, now accounts for more than two-thirds of the MSCI World index's capitalization. Such an imbalance has not been seen since the late 1980s…" ⁦<a href="https://twitter.com/Gavekal?ref_src=twsrc%5Etfw">@Gavekal</a>⁩ <a href="https://t.co/OKO0XCPld5">pic.twitter.com/OKO0XCPld5</a>&mdash; Kevin Gordon (@KevRGordon) <a href="https://twitter.com/KevRGordon/status/1868748830851633403?ref_src=twsrc%5Etfw">December 16, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Why It Matters: Additionally, the top ten constituents in the MSCI World index are U.S.-based firms. This index captures 1,397 large and mid-cap companies across 23 developed markets.



According <a href="https://www.msci.com/documents/10199/178e6643-6ae6-47b9-82be-e1fc565ededb">to</a> MSCI&#8217;s latest release, dated Nov. 29, the U.S. has a weightage of 73.92% in the index, followed by Japan with 5.23%, the United Kingdom with 3.44%, Canada with 3.1% and France with 2.5%.



The index has the highest exposure of 25.29% to information technology companies, followed by 16.3% to financial firms.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/price-target/24/12/42513306/elon-musks-tesla-nearly-5-times-more-expensive-than-industry-average-stock-surges-over-60-since-election">Elon Musk&#8217;s Tesla Nearly 5 Times More Expensive Than Industry Average: Stock Surges Over 60% Since Election</a></li>
</ul>



Photo courtesy: Shutterstock

Global

AAPL

GOOG

GOOGL

MSCI

TSMC

US Stocks Led By Apple, Nvidia, And Other Tech Giants Dominate Nearly Two-Thirds Of MSCI World Index, Drawing Parallels To 1980s Peak

Leading cryptocurrencies stayed muted on Tuesday ahead of the Federal Reserve's last policy decision of 2024.



<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>-0.18%</td><td>$105,942.00</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>-2.29%</td><td>$3,873.95</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>-1.68%</td><td>$0.3916</td></tr></tbody></table></figure>



What Happened: Bitcoin made a new all-time high of $108,000 in early trading hours before falling sharply to $105,000 shortly thereafter. Volatility persisted throughout the day, with the leading coin bouncing around and below $107,000.



Ethereum's decline was steeper, as it dropped below $4,000 to a low of $3,800.



The total cryptocurrency liquidations surpassed $316 million in the last 24 hours, with long liquidations accounting for an overwhelming share.



Bitcoin's Open Interest rose despite the price weakness, suggesting the opening of new short positions. Nearly 60% of Binance futures traders were betting against Bitcoin, according to the Long/Short Ratio.



Market sentiment remained in the "Extreme Greed" region, 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>Pudgy Penguins (PENGU)</td><td>+487.34%</td><td>$0.02936</td></tr><tr><td>Bitget Token (BGB)</td><td>+12.58%</td><td>$3.90</td></tr><tr><td>Cronos (CRO)</td><td>+11.16%</td><td>$0.1941</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.78 trillion, following an increase of 2.43% over the last 24 hours.



Major stock indexes closed in the red on Tuesday. The Dow Jones Industrial Average fell for the ninth consecutive day, dropping 267.58 points, or 0.61%, to close at 43,449.90. The S&amp;P 500 lost 0.39%, ending at 6,050.61, while the tech-heavy Nasdaq Composite reversed from its record highs, falling 0.32% to 20,109.06.



Investors are now preparing for the final monetary policy decision on Wednesday. The Fed is widely expected to enact a 0.25% cut, with traders pricing in a 97% possibility of such a scenario, as per the <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">CME FedWatch</a> tool.



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



Analyst Notes: Widely followed cryptocurrency analyst Rekt Capital said that this was only the start of Bitcoin's parabolic phase, drawing parallels with historical price action.



"Historically, this phase has lasted on average ~300 days Bitcoin is only on day 41 of its parabolic phase," the analyst stated.



<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/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> has only just begun its Parabolic Phase in the cycle Historically, this phase has lasted on average ~300 days Bitcoin is only on Day 41 of its Parabolic Phase<a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> <a href="https://twitter.com/hashtag/Crypto?src=hash&amp;ref_src=twsrc%5Etfw">#Crypto</a> <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a>&mdash; Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1869042931518374304?ref_src=twsrc%5Etfw">December 17, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Cryptocurrency influencer Quinten Francois said that the Bitcoin cycle was being pushed by institutional investors and not retail.



"BTC is knocking at its ATH while there is no hype or euphoria. Why? Retail is in alts,&#8221; Francois 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"><a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> is knocking at its ATH while there is no hype or euphoria Why? Retail is in alts This <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> cycle isn't pushed by retail It's the institutional cycle&mdash; Quinten &#x7C; 048.eth (@QuintenFrancois) <a href="https://twitter.com/QuintenFrancois/status/1868920066097697080?ref_src=twsrc%5Etfw">December 17, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Data fetched from Google Trends also <a href="https://trends.google.com/trends/explore?geo=US&amp;q=bitcoin&amp;hl=en">showed </a>that search interest for Bitcoin has dwindled sharply from its peak just after Donald Trump's win last month.



Photo by Avi Rozen on Shutterstock



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



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42535718/raoul-pal-predicts-violent-upside-for-bitcoin-targets-250000">Raoul Pal Predicts &#8216;Violent Upside&#8217; For Bitcoin, Targets $250,000</a></li>
</ul>

$DOGE

$ETH

Bitcoin, Ethereum, Dogecoin Stay Muted Before Fed's Interest Rate Decision: Analyst Says BTC In Parabolic Phase, Reveals Its Duration

Rep. Marjorie Taylor Greene (R-Ga.) voiced her support for the privatization of the United States Postal Service, amidst its financial woes on Tuesday.



What Happened: In a recent post on X, Greene expressed her long-held belief in the need for privatizing the USPS. She emphasized that her newly formed committee, along with the support of Elon Musk and Vivek Ramaswamy&#8211;<a href="https://www.benzinga.com/news/global/24/11/41927289/trump-appoints-elon-musk-and-vivek-ramaswamy-to-lead-doge-targeting-bureaucracy-and-65-trillion-federal-spending-we-will-not-go-gently">headed</a> Department of Government Efficiency, is gaining momentum in pushing for this change.



<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 need to privatize <a href="https://twitter.com/USPS?ref_src=twsrc%5Etfw">@USPS</a>—I've been saying it for years!<a href="https://twitter.com/DOGE?ref_src=twsrc%5Etfw">@DOGE</a> and my new committee have a lot of momentum heading into next year. The American people gave President Trump a mandate, but they gave all of us in Washington a mandate, too. Selling the Postal Service is a smart… <a href="https://t.co/WqEKXddlFH">pic.twitter.com/WqEKXddlFH</a>&mdash; Rep. Marjorie Taylor Greene&#x1f1fa;&#x1f1f8; (@RepMTG) <a href="https://twitter.com/RepMTG/status/1869110704998846596?ref_src=twsrc%5Etfw">December 17, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/tech/24/12/42500224/elon-musks-mother-opens-up-about-his-friendship-with-barron-trump-bonded-over-out-of-this-world-exploration?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Elon Musk&#8217;s Mother Opens Up About His Friendship With Barron Trump: &#8216;Bonded Over Out-Of-This-World Exploration&#8217;</a>



She stated, &#8220;Selling the Postal Service is a smart decision that keeps our promise to the American people to cut waste, fraud, and abuse.&#8221; 



She also mentioned that the American people have given a mandate to President-elect Donald Trump and all of Washington, implying a collective responsibility to address the USPS&#8217;s financial struggles. 



Notably, Greene chairs the Delivering on Government Efficiency subcommittee in the next Congress. She has previously said that the goal of DOGE is to &#8220;bring accountability and GUT useless government agencies.&#8221;



Why It Matters: The USPS has been <a href="https://www.benzinga.com/news/24/12/42496990/trump-eyes-privatization-of-postal-service-amid-9-5-billion-loss">grappling with financial difficulties</a>, reporting a massive $9.5 billion loss in the fiscal year ending September 30. The agency&#8217;s liabilities have soared to nearly $80 billion, primarily due to declining mail volumes and slower-than-expected growth in parcel shipping.



Trump is reportedly considering the privatization of the USPS as a potential solution to these financial challenges. The move towards privatization is seen as a means to overhaul the agency and address its mounting liabilities.



Privatizing the USPS can potentially reshape consumer shipping, favoring profitable routes while leaving rural areas underserved. FedEx Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) and United Parcel Service, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UPS#NYSE">UPS</a>), already dominate the parcel market and might increase their influence, potentially impacting millions relying on affordable mail services.



For privatization to occur, approval would be needed from the USPS Board of Governors, consisting of 11 members led by Postmaster General Louis DeJoy, CNBC <a href="https://www.nbcnews.com/politics/politics-news/trump-biden-signal-emerging-fight-future-postal-service-rcna184451">reported</a>.



Meanwhile, President Joe Biden announced his intention to renominate former general counsel for the American Postal Workers Union, Anton Hajjar, to the Postal Service Board of Governors. This will require swift Democratic action to confirm him before Republicans gain Senate control in January. Hajjar, previously nominated by Biden and confirmed in 2021, served a term that ended in December 2023. 



Check This Out:



<ul>
<li>Lawmakers Made Huge Investments This Year. <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>



Photo courtesy: Shutterstock



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>

Marjorie Taylor Greene Pushes To Sell Off USPS Amid DOGE Momentum: 'We Need To Privatize...I've Been Saying It For Years'

Nissan Motor Co. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NSANY#OTC">NSANY</a>)&nbsp; shares surged 22.54% in Tokyo on Wednesday <a href="https://www.benzinga.com/news/global/24/12/42541842/japanese-auto-giants-nissan-honda-eye-merger-says-nikkei">after the reports of merger talks</a> with Honda Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HMC#NYSE">HMC</a>). Honda&#8217;s stock is trading down 2%.



According to the report, the two automakers are exploring a merger under a holding company structure, with plans to include Mitsubishi Motors Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MMTOF#OTC">MMTOF</a>), where Nissan holds a 24% stake. A memorandum of understanding is expected soon. Mitsubishi Motor shares were seen trading over 13% higher in Tokyo at the time of writing.



If finalized, the combined Nissan-Honda-Mitsubishi group could achieve annual sales exceeding 8 million vehicles, making it one of the world's largest automakers. However, it would still trail Japan&#8217;s Toyota Motor Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>), with 11.2 million sales in 2023, and Germany's Volkswagen AG at 9.2 million.



Year-to-date, Nissan shares have fallen 28.3% trading at 412 Japanese Yen ($2.68), while Honda is trading at 1,270 Japanese Yen ($8.27), down 15.7%. Meanwhile, Mitsubishi Motor stock is up 1.49% this year trading at 463 Japanese Yen ($3.01).



Read Next: 



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<li><a href="https://www.benzinga.com/news/legal/24/12/42538146/asml-lawsuit-drama-semiconductor-titan-faces-investor-backlash-after-stock-sinks-27-in-6-months">ASML Lawsuit Drama: Semiconductor Titan Faces Investor Backlash After Stock Sinks 27% In 6 Months</a></li>
</ul>



Image Via Shutterstock



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

Asia

MMTOF

NSANY

Nissan Stock Soar Over 20% On Merger Talks With Honda, Mitsubishi Spikes

The U.S. stock market has generally delivered solid gains around Federal Reserve meetings in 2024, signaling investor optimism as the central bank prepares for its final policy decision of the year <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">on Wednesday.</a>



An investor adopting a short-term long strategy — buying the S&amp;P 500 index at market close the day before a Fed meeting and selling at the close the day after — would have realized a median return of 1.1% over the last seven meetings.



According to data compiled by Seasonax, this strategy has yielded positive returns six out of seven times this year.



The best-performing event came during the September FOMC Meeting, when the Federal Reserve cut interest rates by 50 basis points. In such an instance, a long position opened at 5,634 points on Sept. 17 and closed at 5,713 points two days later delivering a 1.4% gain.



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Start Date</th><th>Start S&amp;P 500 Price</th><th>End Date</th><th>End S&amp;P 500 Price</th><th>Profit %</th></tr></thead><tbody><tr><td>Jan 30, 2024</td><td>4,924.97</td><td>Feb 1, 2024</td><td>4,906.19</td><td>-0.38%</td></tr><tr><td>Mar 19, 2024</td><td>5,178.51</td><td>Mar 21, 2024</td><td>5,241.53</td><td>+1.22%</td></tr><tr><td>Apr 30, 2024</td><td>5,035.69</td><td>May 2, 2024</td><td>5,064.20</td><td>+0.57%</td></tr><tr><td>Jun 11, 2024</td><td>5,375.32</td><td>Jun 13, 2024</td><td>5,433.74</td><td>+1.09%</td></tr><tr><td>Jul 30, 2024</td><td>5,436.44</td><td>Aug 1, 2024</td><td>5,446.68</td><td>+0.19%</td></tr><tr><td>Sep 17, 2024</td><td>5,634.58</td><td>Sep 19, 2024</td><td>5,713.64</td><td>+1.40%</td></tr><tr><td>Nov 6, 2024</td><td>5,929.04</td><td>Nov 8, 2024</td><td>5,995.54</td><td>+1.12%</td></tr></tbody><tfoot><tr><td></td><td></td><td></td><td></td><td>Median: +1.1%</td></tr></tfoot></table></figure>



<h3 class="wp-block-heading">Patience Pays: Longer Holds Double Returns</h3>



While short-term strategies around Fed meetings have been profitable, holding the S&amp;P 500, as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), for 15 sessions post-meeting significantly amplifies returns.



Investors using this extended strategy achieved an average profit of 3.29%, more than double the one-day gain.



Crucially, every Fed meeting this year resulted in a positive return over the 15-session period.



The data supports the notion that investors often require more time to fully digest the implications of a Fed meeting, underscoring the importance of patience and the benefits of holding onto stocks rather than succumbing to the temptation of selling in the immediate aftermath.



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Start Date</th><th>Start Price</th><th>End Date</th><th>End Price</th><th>Profit %</th></tr></thead><tbody><tr><td>Jan 30, 2024</td><td>4,924.97</td><td>Feb 22, 2024</td><td>5,087.03</td><td>+3.29%</td></tr><tr><td>Mar 19, 2024</td><td>5,178.51</td><td>Apr 11, 2024</td><td>5,199.06</td><td>+0.40%</td></tr><tr><td>Apr 30, 2024</td><td>5,035.69</td><td>May 22, 2024</td><td>5,307.01</td><td>+5.39%</td></tr><tr><td>Jun 11, 2024</td><td>5,375.32</td><td>Jul 5, 2024</td><td>5,567.19</td><td>+3.57%</td></tr><tr><td>Jul 30, 2024</td><td>5,436.44</td><td>Aug 21, 2024</td><td>5,620.85</td><td>+3.39%</td></tr><tr><td>Sep 17, 2024</td><td>5,634.58</td><td>Oct 9, 2024</td><td>5,792.04</td><td>+2.79%</td></tr><tr><td>Nov 6, 2024</td><td>5,929.04</td><td>Nov 29, 2024</td><td>6,032.38</td><td>+1.74%</td></tr></tbody><tfoot><tr><td></td><td></td><td></td><td></td><td>Median: +3.29%</td></tr></tfoot></table></figure>



<h3 class="wp-block-heading">Will December Break The Trend? The Stakes Are Higher</h3>



As the Federal Reserve prepares for its final policy meeting of 2024, all eyes are on whether markets will continue their winning streak or finally break the trend. Investors broadly anticipate a 25-basis-point rate cut, bringing the target range to 4.25%-4.5%.



Yet the true driver of market reactions will likely be the Fed&#8217;s updated macroeconomic outlook, which includes forecasts on inflation, growth, and interest rates for the next three years.



The backdrop for this meeting is notably different compared to earlier in the year. Recent economic data has shown unexpected resilience, complicating the Fed&#8217;s path forward. 



Consumer inflation rose for a second consecutive month in November, reaching 2.7% year-over-year, while producer prices accelerated to 3%, their fastest pace since February 2023. Signs of economic strength extend further: retail sales surged beyond expectations in November, while business activity in the services sector posted its strongest expansion since late 2021.



<h3 class="wp-block-heading">Powell Now Holds Market Pendulum</h3>



For Fed Chair Jerome Powell, the task will be delicate. He must strike a balance between acknowledging persistent economic momentum and reassuring markets that policymakers remain committed to a gradual path of rate cuts. 



Any signal that rate reductions could slow in 2025 may test investor optimism, particularly as Fed funds futures price only a 60% chance of another cut by March.



This makes December&#8217;s meeting a critical juncture.



If Powell&#8217;s remarks reinforce confidence in the Fed&#8217;s ability to guide a soft landing for the economy, the S&amp;P 500 could extend its streak of positive returns seen around FOMC decisions this year. On the other hand, a more cautious tone, hinting at concerns over sticky inflation or the need to pause rate cuts, could deliver a reality check to markets that have grown accustomed to steady gains.



The question is no longer just about another short-term bounce. Instead, December&#8217;s meeting may set the tone for market sentiment heading into 2025. 



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Fed Chair Jerome Powell illustration created using artificial intelligence via Midjourney.

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