According to Caixin, on December 31 (Editor: Shi Zhengcheng), last night and this morning, the US stock market experienced a large drop at opening for the second consecutive trading day, followed by a rebound. The S&P and Nasdaq have seen declines of over 1% for two consecutive days, indicating that year-end profit-takers are locking in gains, while off-market funds are hesitant to enter at this time.

As of Monday's close, the S&P 500 index fell by 1.07%, closing at 5906.94 points; the Nasdaq Composite Index fell by 1.19%, closing at 19486.78 points; the Dow Jones Industrial Average fell by 0.97%, closing at 42573.73 points.

Generally, trading on Wall Street in the last week of the year tends to be light, as many professionals are still on vacation.

This year, there are many additional factors that trigger cautious sentiment among investors, such as Trump's inauguration on January 20 next year. At the same time, US Treasury Secretary Yellen has warned Congress that the US debt ceiling will be reinstated on January 2 next year, so the Treasury may hit its debt ceiling between January 14 and January 23, at which point extraordinary measures will need to be taken to prevent a US sovereign debt default.

Historically, the issue of the US debt ceiling has usually served as a pretext for Congress members to argue. Since the debt ceiling was set in 1939, the US Congress has raised the limit 103 times.

However, against the backdrop of the new congressional term, this matter also becomes a source of risk for volatility. This Friday (January 3), the new US Congress will convene, and Johnson, who has just received Trump's endorsement, will attempt to seek re-election. Because the Republican Party holds only 219 of the 435 House seats, Johnson essentially needs to secure every intra-party vote, including from those in the party who explicitly oppose his re-election this month—core issues include limiting government deficits.

Analyst Ahan Vashi from Seeking Alpha indicated that following Yellen's warning that the USA might reach its debt ceiling in mid-January, investors moved from risk assets like Stocks to long-term Bonds in the early trading session on Monday. Although most Stocks attempted to recover most of their losses, the "Christmas rally" seems to be failing.

As usual, US Stocks will continue normal trading on December 31, although the bond market will close early.

Performance of Popular Stocks

At the close on Monday, except for NVIDIA, which rose 0.35% against the trend, almost all tech giants fell. Apple dropped 1.33%, Microsoft fell 1.32%, Amazon decreased 1.09%, Google C declined 0.7%, Tesla fell 3.3%, Meta dropped 1.43%, Advanced Micro Devices decreased 2.2%, and Intel fell 2.36%.

On the news front, NVIDIA announced the completion of its acquisition of the Israeli GPU cluster optimization startup Run:ai, and at the same time, NVIDIA's AI Chip packaging substrate supplier disclosed that it is considering ramping up production.

Since the debt ceiling issue has always been Bearish for Bitcoin, MicroStrategy fell over 8% on Monday. Boeing, affected by the South Korean air disaster, dropped 2.31% on Monday. South Korean regulators announced that all Boeing 737-800 aircraft in the country will be inspected.

Under the influence of weak market sentiment, Chinese concept Stocks mostly fell on Monday, with the Nasdaq China Golden Dragon Index closing down 1.90%.

At the close, Alibaba dropped 1.08%, JD.com fell 2.06%, Baidu decreased 2.94%, PDD Holdings fell 3.14%, Bilibili dropped 2.34%, NIO decreased 2.12%, Li Auto fell 4.79%, Xpeng Motors dropped 6.06%, EHang fell 2.34%, GDS Holdings rose 5.52%, and 21Vianet gained 17.56%.

Other news

[Ackman promotes Fannie Mae and Freddie Mac stocks]

Well-known American investor and Trump supporter Bill Ackman openly stated that the stock prices of Fannie Mae and Freddie Mac offer "huge asymmetric upside potential." Ackman believes that during Trump's next term, there will be a credible path for the federal government to exit its conservatorship of these two companies. In addition to removing $8 trillion in liabilities from the government's balance sheet, it would bring an additional $300 billion in profit to the United States government, which would be a "big deal" that Trump would like.

After Ackman's comments, Fannie Mae's stock rose 36.14% on Monday, and Freddie Mac's stock also surged by 33.87%.

[0.1 million new Tesla users added in two weeks, LiveOne's stock rises sharply]

On Monday local time, American music and radio media company LiveOne's stock rose 23.53% after the company announced a collaboration with Tesla that brought in over 450,000 users, adding 100,000 new users in the past two weeks. The company disclosed that a quarter of these are free (but ad-supported) users who listen to 50 minutes of programming daily in their cars.

[Hesai Technology's Lidar delivery reaches a milestone]

Hesai Technology announced on Monday that it delivered over 100,000 Lidar units in December, making it the first company in the industry to reach this milestone. Hesai also announced that Lidar delivery for the robotics market exceeded 20,000 units in December, setting a new record. The company expects production capacity to reach 2 million units by 2025. Driven by this news, Hesai Technology's stock rose 8.73% on Monday.

[Faraday Future Soars Over 70%]

Faraday Future (FFIE) rose by 78.41% on Monday, as the company announced it will unveil the FX prototype at the CES exhibition in January next year and release a strategic update. Additionally, the company announced that entrepreneur Luke Hans will participate in the delivery ceremony of the FF 91 2.0 Futurist Alliance electric vehicle in January 2025. This is reportedly the 15th FF 91 delivered by Faraday Future.

Editor/lambor