Hassett: Fed may cut rates; small-cap stocks surge; US to increase mining company stakes.

Federal Reserve Interest Rate Cut Expected

Fed's Next Meeting

Hassett, the Director of the National Economic Council, indicated that the Federal Reserve may lower interest rates by approximately 25 basis points in its next meeting. He emphasized the need for the next Fed Chair to be data-responsive.

U.S. National Debt Surpasses $30 Trillion

The U.S. national debt has exceeded $30 trillion for the first time, doubling since 2018. As of November, the total amount of Treasury bills, notes, and bonds grew by about 0.7% to $30.2 trillion, with debt servicing costs reaching $1.2 trillion.

CFTC Approves Spot Cryptocurrency Trading

The Commodity Futures Trading Commission (CFTC) announced that spot cryptocurrency products will be traded on registered exchanges, marking a significant regulatory development. This move aims to enhance domestic trading safety and follows recommendations from a presidential task force.

Fitch Ratings Upgrades Commodity Price Assumptions

Fitch Ratings has revised its price assumptions for various commodities, including copper, iron ore, and aluminum for 2025-2026, reflecting healthy demand. They also adjusted the price outlook for Australian thermal coal and other metals.

Mercuria Plans to Withdraw Copper from LME

Swiss commodity trader Mercuria plans to withdraw over 40,000 tons of copper from the London Metal Exchange (LME) due to anticipated supply shortages, valued at approximately $460 million.

U.S. Government to Increase Stake in Mining Companies

The Trump administration plans to increase its stake in key mineral companies to counter China's dominance in various raw materials. This initiative has already seen over $1 billion invested in the past year.

Nvidia Export License Bill Proposed

A bipartisan group of U.S. senators is proposing a bill to prohibit the Department of Commerce from issuing export licenses to Nvidia for its H200 and Blackwell chips for 30 months, aiming to maintain U.S. leadership in AI.

U.S. Stock Market Overview

Mixed Performance in Major Indices

On Thursday, U.S. stock indices closed mixed, with initial jobless claims lower than expected. The Dow Jones fell 0.07%, while the Nasdaq rose 0.22%, and the S&P 500 gained 0.11%, reaching a one-month high.

Notable Stock Movements

• Meta: Up over 3%
• Nvidia: Up over 2%
• Tesla: Up nearly 2%
• Micron Technology: Down over 3%
• Apple and Amazon: Down over 1%

Cryptocurrency Stocks Performance

Most cryptocurrency-related stocks saw gains, with BMNR rising nearly 8% and IREN up nearly 6%.

Key Developments in Tech Stocks

• Nvidia: Stocks related to Nvidia surged, with CoreWeave up over 8%.
• Google: Announced a partnership with Replit to enhance AI coding tools.

Corporate News

Microsoft to Raise Office Subscription Prices

Microsoft announced an increase in Office subscription prices for business and government clients starting July 1, 2024, with some plans rising by over 10%.

Apple Announces Executive Changes

Apple appointed Jennifer Newstead as General Counsel, effective March 1, 2026, succeeding Kate Adams.

Semiconductor Supply Issues

Transcend reported delays in chip shipments from major NAND flash suppliers, leading to significant price increases.

Hong Kong Stock Market Activity

Southbound funds net bought HK stocks worth 1.48 billion HKD, with notable purchases in 盈富基金 and sales in 腾讯控股.

Tianyu Semiconductor IPO Success

Tianyu Semiconductor's IPO in Hong Kong raised 1.74 billion HKD, with retail investors oversubscribing by 60.63 times.

Country Garden Leadership Changes

Country Garden announced a leadership reshuffle, with Mo Bin becoming Co-Chairman and Cheng Guangyu appointed as President.

Conclusion

The U.S. economy is facing significant changes, with potential interest rate cuts, rising national debt, and evolving regulations in cryptocurrency trading. The stock market reflects mixed sentiments, while corporate strategies adapt to competitive pressures and regulatory landscapes.