US stock style rotation intensifies; tech stocks decline, while precious metals and financials shine.

Bessent Proposes Reform of Financial Stability Oversight Council

Shift Towards Looser Regulations

U.S. Treasury Secretary Bessent plans to significantly adjust the financial regulatory approach by shifting the focus of the Financial Stability Oversight Council (FSOC) from strengthening oversight to relaxing regulations. This policy change indicates a potential fundamental shift in the regulatory framework established since the 2008 financial crisis. Bessent also intends to form a working group to explore opportunities for artificial intelligence (AI) in enhancing the resilience of the financial system while monitoring potential financial stability risks from AI applications.

U.S. Jobless Claims Surge

Unemployment Claims Increase

Last week, U.S. jobless claims surged by 44,000, marking the largest weekly increase since the pandemic began. The Labor Department reported that initial claims rose to 236,000 for the week ending December 6, the highest since March 2020. In contrast, continuing claims dropped significantly to a low of 1.84 million, the largest weekly decline in four years.

CFTC Withdraws Outdated Digital Asset Guidance

Regulatory Update

The Commodity Futures Trading Commission (CFTC) announced the withdrawal of outdated guidance related to "virtual currencies" due to significant developments in the crypto market. Acting Chair Carolyn D. Pham emphasized the need to eliminate complex guidelines that stifle innovation in the cryptocurrency sector.

House Votes to Table Impeachment Motion Against Trump

Political Developments

On December 11, the U.S. House of Representatives voted 237 to 140 to table an impeachment motion against President Donald Trump proposed by Congressman Al Green. All Republican members supported the motion, while many Democrats, despite privately believing Trump should be impeached, chose not to advance the resolution.

Federal Reserve Reappoints Regional Bank Presidents

Personnel Stability

The Federal Reserve announced the unanimous reappointment of 11 regional bank presidents for a five-year term starting March 1. This decision addresses concerns regarding the future composition of the Federal Open Market Committee.

Trump to Sign Executive Order on AI Regulations

National Framework for AI

President Trump announced plans to sign an executive order to prevent states from enforcing their own AI regulations, aiming to create a unified national framework for AI.

JPMorgan: Workforce as a National Security Threat

Labor Market Concerns

JPMorgan's latest report highlights that 40% of U.S. adults lack basic digital skills, framing the labor shortage as a national security threat rather than just an economic issue.

Treasury Department to Expand Corporate Tax R&D Deductions

Tax Policy Changes

The Treasury Department is preparing to release a corporate tax "workaround" that could significantly benefit companies like Salesforce (CRM) and Qualcomm (QCOM) by allowing more extensive R&D deductions.

Ukraine Submits Revised Peace Plan to the U.S.

Diplomatic Efforts

Ukrainian President Zelensky announced that Ukraine has submitted a revised peace plan to the U.S. to expedite ceasefire negotiations with Russia, although territorial concessions remain a significant hurdle.

EU to Finalize Indefinite Freezing of Russian Assets

Financial Support for Ukraine

EU diplomats indicated that member states aim to agree on an indefinite freeze of Russian central bank assets in Europe, laying the groundwork for long-term financing for Ukraine.

U.S. Stock Market Update

Market Performance

The Dow Jones and S&P 500 indices set new closing records, while Oracle's stock fell nearly 11%, dragging down the Nasdaq. The market saw a rotation with small-cap and cyclical stocks rising amid a backdrop of Fed rate cuts.

Broadcom Exceeds Q4 Expectations

Strong AI Demand

Broadcom reported adjusted earnings and revenue that exceeded market expectations, driven by strong demand for AI products. However, the CFO indicated that gross margins would narrow by 1% due to AI product impacts.

Apple Loses Appeal in Epic Games Case

Legal Setback

A U.S. appeals court ruled in favor of Epic Games in its long-standing dispute with Apple, upholding a lower court's contempt ruling against Apple regarding App Store commission practices.

OpenAI Launches Advanced AI Model GPT-5.2

Competitive Landscape

OpenAI announced the launch of its GPT-5.2 AI model, claiming improvements in general intelligence and coding capabilities, which may impact competitors like Google.

Nvidia to Address Data Center Power Shortages

Industry Summit

Nvidia plans to host a private summit to address power shortages affecting data centers, which could hinder AI development.

CoreWeave Partners with Runway for AI Video Models

AI Collaboration

CoreWeave announced a partnership with Runway to provide cloud solutions for next-generation AI video models.

Disney to Invest in OpenAI

Strategic Investment

Disney announced a $1 billion investment in OpenAI and authorized the use of its IP for AI video generation tools.

Rivian Develops AI Chips

Automotive Innovation

Rivian is developing its own AI chips to replace Nvidia's technology in future vehicles, although its stock saw a significant drop.

Tesla's November Sales Hit Four-Year Low

Sales Decline

Despite launching cheaper versions of its popular electric vehicles, Tesla's U.S. sales in November fell to the lowest level in nearly four years.

Eli Lilly Reports Weight Loss Drug Success

Clinical Trial Results

Eli Lilly's new weight loss drug showed promising results, with participants losing nearly a quarter of their body weight in trials.

Visa Stock Rating Upgraded

Market Movements

Visa shares rose over 6% after Bank of America upgraded its stock rating from neutral to buy.

Costco and Lululemon Earnings Reports

Financial Performance

Costco reported Q1 revenue of $67.31 billion, while Lululemon's Q3 revenue reached $2.6 billion, both showing year-over-year growth.

Ciena's Strong Q4 Performance

Growth in Cloud and AI Demand

Ciena reported Q4 earnings that exceeded expectations, attributing growth to strong demand in cloud computing and AI.

Hong Kong Stock Market Activity

Investment Trends

Recent trading saw significant net purchases of Meituan and Xiaomi, while China National Offshore Oil Corporation faced net selling.

Leapmotor's Share Buyback Announcement

Corporate Actions

Leapmotor announced a buyback of 2.15 million shares, totaling over HKD 100 million.

CIFI Holdings Plans Bond Buyback

Financial Strategy

CIFI Holdings announced plans to buy back seven of its corporate bonds, with a total buyback amount not exceeding 220 million yuan.

Meituan Launches Medical Drone Delivery

Innovation in Logistics

Meituan successfully completed its first medical sample drone delivery in Shanghai, marking a significant step in medical logistics.