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Market Summary

Stocks ended a volatile year with the S&P 500 and Nasdaq near record territory while the Dow lagged; markets are jittery after Fed minutes showed internal splits. AI and semiconductors led gains, precious metals saw wild swings after margin hikes, and Treasury yields ticked higher on unexpectedly firm jobs data—volatility and sector rotation will likely persist.

Tesla stunned markets by publishing sales forecasts that are lower than many expected, prompting scrutiny of demand and guidance. The story is paired with investor reaction as famed short-seller Michael Burry denies taking a short position on Tesla.

Figure of the Day

199,000 – Weekly U.S. initial jobless claims, a near multiyear low highlighting labour-market resilience.

TSMC has moved to volume production on its 2-nanometer process, signaling a milestone in the semiconductor arms race. Nvidia has separately asked TSMC to boost H200 chip output as Chinese demand surges, putting pressure on supply chains.

Meta moved decisively into AI agents with its Manus buyout, marking a major M&A step in the AI race. Coverage highlights the acquisition and Meta’s broader push to build an agent-driven platform.

Bullish

Vanda Wins FDA Approval for Motion-Sickness Drug – Shares Rally

FDA approval of NEREUS (tradipitant) opens a new commercial market for Vanda and boosts revenue prospects, sending shares sharply higher.
More on prnewswire.com

Warren Buffett’s long tenure at Berkshire ends, creating strategic and leadership questions for investors. Coverage captures both his retirement and the immediate market and governance implications for Berkshire Hathaway.

Ukraine confirmed a strike on Russia’s Tuapse oil refinery, marking a notable escalation in energy-targeted attacks. Russia responded by releasing footage challenging Kyiv’s account, intensifying information warfare.

Bearish

Corcept Shares Plunge After FDA Rejects Relacorilant

FDA rejection for relacorilant deals a blow to Corcept’s pipeline and valuation, triggering a sharp sell-off and renewed doubts about near-term growth.
More on benzinga.com

Widespread economic protests in Iran are spreading as the currency collapses, raising regime-risk questions. Tehran replaced its central bank governor in a rapid response to stem financial turmoil and public anger.

China announced the conclusion of its ‘Justice Mission 2025’ military maneuvers around Taiwan, calling the drills a success. European capitals voiced concern about the scope and implications of the exercises for regional security.

Regulatory Impact

France plans to ban social media for under-15s from Sept 2026; the Crypto-Asset Reporting Framework (CARF) begins Jan 1, 2026 across many jurisdictions; IRS raises 2026 business mileage rate and other tax rule tweaks will affect corporations and workers.

Weekly U.S. initial jobless claims fell to 199,000, underscoring a surprisingly resilient labor market. Bond markets reacted as Treasury yields moved higher on the stronger-than-expected data.

U.S. crude imports fell to their lowest level since February 2021 as imports dropped and refiners ran hot. The EIA reported a weekly draw in crude inventories, tightening near-term supply balances.

Quote

Market sentiment is on a razor’s edge.

— Rohit Kulkarni, Roth Capital Partners

Precious-metals markets cooled after the CME raised margin requirements, triggering sharp moves in silver. Traders locked in gains after a blockbuster run for gold and silver in 2025.

Reuters revealed internal Meta playbooks aimed at obscuring scam ads from regulators, sparking ‘regulatory theater’ accusations. Reporting also examines how Manus reassured U.S. investors about its China ties ahead of the Meta deal.

The federal government froze childcare payments to Minnesota amid an investigation into alleged fraud at daycare providers. The move escalated political tensions and spurred calls for audits and accountability.

Trump Media announced plans to issue a digital token to shareholders, a novel move blending politics and crypto. The announcement sent DJT shares higher before volatility followed amid skepticism.

Official Chinese data showed factory activity expanding in December, ending an eight-month contraction and hinting at stabilizing demand. President Xi used the moment to highlight AI and chip achievements as evidence of economic momentum.

ByteDance plans a massive $14 billion H200 chip purchase as computing needs surge, underscoring the global AI hardware scramble. The move spotlights how big tech customers are reshaping chip supply dynamics for 2026.

Investors predict tangible AI labor-market disruption starting in 2026, setting expectations for automation-led change. Morgan Stanley warned that up to 200,000 European banking jobs could be at risk by 2030, focusing debate on policy and reskilling.

Fed minutes revealed a deep split among policymakers over the December rate cut, highlighting uncertainty about the path of future rate moves. Officials remain divided on timing and magnitude of additional cuts, complicating market expectations.

Meta’s Manus deal and its compliance posture have prompted close scrutiny of Chinese links and investor safeguards. The acquisition reflects a broader U.S.-China tech tension as regulators and markets assess risks tied to AI talent and IP.

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