Source: Caixin News

On Monday (December 23), US stocks showed an upward trend during Regular Trading Hours, with the Dow Jones Industrial Average finally turning positive in the last half hour, and all three major indices closing higher.

At the close, $Dow Jones Industrial Average (.DJI.US)$ up 0.16%, at 42,906.95 points; $S&P 500 Index (.SPX.US)$ up 0.73%, at 5,974.07 points; with a high proportion of Technology stocks. $Nasdaq Composite Index (.IXIC.US)$ Up 0.98%, closing at 19,764.89 points.

At the beginning of trading, weak economic data from the USA seemed to impact market sentiment. The Conference Board announced that the US consumer confidence index for December fell by 8.1 points from the previous month to 104.7, the lowest level since September, far below the market expectation of 113.

Meanwhile, durable goods orders in November decreased by 1.1% compared to October, marking the largest month-on-month decline since June, while the market originally expected only a reduction of 0.2%. These factors caused the Dow Jones Industrial Average to briefly drop over 300 points at the beginning of trading.

However, during the trading session, the stock prices of US tech giants strengthened significantly, and by the close, only Microsoft was down, pushing the three major indexes into positive territory. The PCE inflation released last Friday was lower than expected, helping the stock market recover some of the losses caused by the Federal Reserve.

Over the weekend, the US Congress passed a short-term spending bill, which was signed into effect by President Biden, avoiding a government shutdown crisis before the holidays. Federal agencies being able to continue operating in the New Year reassured investors.

This Tuesday, US stocks will close three hours early, and the market will be closed on Wednesday. Media analysis suggests that trading volume this week will be relatively low. As the end of the year approaches, the market is paying attention to whether there will be a 'Santa Claus rally' this year.

Data shows that in December of an election year in the USA, the probability of the S&P 500 index rising is 83%. Piper Sandler analysts state that the main upward trend in the market remains intact.

Performance of Popular Stocks

Most large technology stocks rose, with Apple up 0.31%, NVIDIA up 3.69%, Microsoft down 0.31%, Google Class C up 1.57%, Amazon up 0.06%, Meta up 2.49%, and Tesla up 2.27%.

The PHLX Semiconductor Index increased by 3.01%, with only three of the 30 constituent stocks declining. GlobalFoundries rose 5.54%, Broadcom rose 5.52%, Taiwan Semiconductor rose 5.15%, and AMD rose 4.52%. Arm Holdings fell 4%, while Qualcomm secured a key victory in the Arm chip litigation case.

Eli Lilly and Co rose 3.71% after the US FDA approved its blockbuster therapy Zepbound for improving snoring in obese patients with moderate to severe obstructive sleep apnea (OSA). According to the press release, Zepbound is the first prescription medication approved for treating moderate to severe OSA in obese patients.

In terms of China Concept Stocks, the Nasdaq China Golden Dragon Index rose 0.91%.

Most popular China Concept Stocks rose, with ZEEKR up 10.53%, Alibaba up 3.48%, Baidu up 3.10%, New Oriental up 2.76%, Li Auto up 2.33%, JD.com up 1.82%, TAL Education up 1.53%, Xpeng Motors up 1.34%, PDD Holdings up 1.08%, NIO down 1.32%, and Tencent Music down 1.67%.

Company news

[MicroStrategy purchased 5,262 Bitcoins for approximately $0.561 billion.]

MicroStrategy purchased 5,262 Bitcoins for approximately $0.561 billion between November 16, 2024, and December 22, 2024, at a price of about $106,662 per Bitcoin, achieving a 47.4% return so far this quarter and a 73.7% return year-to-date. As of December 22, 2024, MicroStrategy holds 444,262 Bitcoins, priced at approximately $62,257 each, with a total value of about $27.7 billion.

At the close, MicroStrategy dropped by 8.78%.

[Suspect in the shooting of UnitedHealth executive pleads not guilty to charges in New York State]

On December 23, reporters learned that Luigi Mangione, the suspect in the shooting of UnitedHealth CEO Brian Thompson, pleaded not guilty to charges of murder and terrorism in a hearing that day in New York State. This marked Mangione's first formal response to the charges brought by Manhattan District Attorney Alvin Bragg. According to the indictment, Mangione faces 11 counts in New York State, including one count of first-degree murder and two counts of second-degree murder. Additionally, he faces four federal charges.

[Xerox to acquire printer manufacturer Lexmark for a transaction value of $1.5 billion]

Xerox has agreed to acquire laser printer manufacturer Lexmark from an Asian investor consortium for a transaction value of $1.5 billion. The deal includes debt and other liabilities that Xerox will assume from the current owners, Ninestar Corporation, PAG Asia Capital, and Shanghai Shouda Investment Centre. Xerox stated on Monday that it will reduce its annual dividend from $1 per share to 50 cents to help finance the acquisition. The transaction is expected to be completed in the second half of 2025, pending approval from U.S. and Chinese regulatory authorities.

[NASDAQ 100 Index rebalancing: Tesla, Meta, and Broadcom's weight decreases]

The influence of three of the world's largest companies has decreased in the NASDAQ 100 Index, following a surge in the Technology Sector in 2024 that pushed the scale of these stocks to unprecedented levels. Data shows that in the annual rebalancing, the shares held by Tesla, Meta Platforms, and Broadcom have all decreased in the NASDAQ 100 Index. Meanwhile, the weights of Apple, NVIDIA, Microsoft, and Alphabet have increased.

[The Federal Reserve will seek opinions on adjustments related to bank stress tests]

On Monday, the Federal Reserve stated that Wall Street Banks would have the opportunity to comment on a series of adjustments to the Federal Reserve's annual bank stress tests. The Federal Reserve indicated that it would seek public input on the models used to determine assumed losses and income for banks under stress conditions. The proposed reforms also include averaging the results of the tests over two years to reduce the yearly fluctuations in capital requirements caused by stress tests. In a press release, the Federal Reserve stated: "These proposed adjustments will not have a material impact on overall capital requirements." The Federal Reserve analyzed the current stress tests and decided to adjust them to enhance resilience. Regulators plan to launch a public consultation process on the potential adjustments to the stress tests in early 2025.

编辑/jayden