Stock Market Wraps 2025 with Double-Digit Gains
The U.S. stock market concluded 2025 on a high note, with major indexes achieving significant double-digit gains despite a slight dip on the year's final trading day. The S&P 500 rose 16%, the Nasdaq surged 20%, and the Dow gained 13%, driven by optimism surrounding artificial intelligence and resilient corporate earnings. However, challenges like tariff concerns and market dependency on tech remained. Looking ahead, analysts predict continued market strength in 2026, though risks from AI and economic uncertainties persist.
Novo Nordisk's Weight-Loss Pill Approval: Key Impacts
Novo Nordisk's FDA approval for its oral weight-loss drug, Wegovy, marks a significant milestone for the company and the obesity market. The pill, which showed superior weight-loss results in trials, offers a convenient alternative to injectables and aims to expand access for millions of patients. This development could help Novo regain market share amidst competition from Eli Lilly and others in a rapidly growing $150 billion obesity market.
November Home Sales Face Challenges Amid High Rates
November saw a modest 0.5% rise in U.S. home sales compared to October, but sales were down 1% year-over-year. High mortgage rates, limited housing supply, and elevated prices continue to weigh on potential buyers. Inventory levels dropped 5.9% month-over-month, while the national median home price reached $409,200, a 1.2% increase from the previous year. First-time buyers remain at 30% of sales, below the historical average of 40%. Experts highlight the importance of mortgage rates and economic conditions for a potential market rebound in 2025.
TikTok Cedes U.S. Control to American Investors
TikTok and its parent company ByteDance have agreed to create a joint venture, granting American investors majority control of its U.S. operations. Key investors include Oracle, Silver Lake, and MGX, holding a 45% stake collectively. ByteDance retains 20% ownership, with the deal expected to finalize by January 2026. The new entity will oversee data security, content moderation, and algorithm integrity, addressing U.S. national security concerns. This agreement marks a significant step in resolving tensions over TikTok’s Chinese ownership.
Amazon Appoints Peter DeSantis to Lead AI Innovations
Amazon has appointed Peter DeSantis, a 27-year veteran and former AWS executive, to lead its new AI-focused organization. This unit will unify efforts in AI models, custom silicon, and quantum computing as Amazon doubles down on its AI investments. DeSantis' leadership comes as the company seeks to strengthen its position in the competitive AI landscape, following major investments in AI infrastructure and partnerships with firms like OpenAI and Anthropic.
Warner Bros Rejects Paramount Bid, Endorses Netflix Deal
Warner Bros Discovery's board has urged shareholders to reject Paramount Skydance's $108.4 billion offer, citing its financial and structural risks, and instead favor Netflix's binding $83 billion merger proposal. The board highlighted Netflix's superior offer, which includes robust financing and fewer regulatory hurdles, as a more secure and beneficial option for shareholders. Paramount's claims of "air-tight financing" were questioned, with concerns over its creditworthiness and operational risks. A shareholder vote on the Netflix deal is anticipated in spring or early summer.
Ford Announces $19.5B EV Restructuring Charges
Ford Motor Company is pivoting its electric vehicle strategy, incurring a record $19.5 billion in special charges. The automaker will focus on hybrid and extended-range EVs (EREVs) while canceling certain EV models like the F-150 Lightning in its current form. Ford is also launching a new battery energy storage business and expects 50% of its global volume to consist of hybrids and EVs by 2030. These changes aim to address consumer demand and improve profitability for its EV segment by 2029.
Fed Cuts Interest Rates Amid Economic Concerns
The Federal Reserve has reduced the benchmark interest rate by 25 basis points to a range of 3.5%-3.75%, marking the third cut this year. The decision, made amidst rising inflation and a slowing labor market, reflects the Fed's effort to balance its dual mandate of price stability and maximum employment. However, the vote revealed a divided policy committee, with dissenters advocating for either a larger cut or no change. Fed Chair Jerome Powell emphasized the need for caution in future rate adjustments as uncertainty persists in the economy.
SpaceX Targets $800 Billion Valuation in Secondary Sale
SpaceX, led by Elon Musk, is reportedly preparing for a secondary share sale valuing the company at $800 billion, surpassing OpenAI's $500 billion valuation. This move cements SpaceX as the most valuable private company in the U.S. The valuation reflects its dominance in commercial space launches and the success of its Starlink satellite internet service, which serves millions globally. An IPO is targeted for late 2026, further solidifying its position as a dual-sector leader in defense and telecommunications.
U.S. Consumer Sentiment Slightly Improves in December
The University of Michigan reported a slight rise in U.S. consumer sentiment to 53.3 in December from 51 in November, surpassing economist expectations of 52. However, sentiment remains significantly lower compared to a year ago. Expectations for year-ahead inflation improved, dipping to 4.1%, the lowest since January. Despite this, consumers continue to feel burdened by high prices, and overall economic views remain subdued.
U.S. Consumer Spending Slows in September
U.S. consumer spending rose by 0.3% in September, showing signs of slowing momentum compared to previous months. The moderation in spending is attributed to a weak labor market, rising living costs, and reduced government assistance. Despite these challenges, overall economic growth remained robust, with GDP estimated to have grown at an annualized rate of 3.8% in Q3. Inflation stayed elevated, with the Federal Reserve's preferred PCE Price Index rising 2.8% year-over-year, potentially influencing upcoming interest rate decisions.
Netflix Acquires Warner Bros. Assets in $72B Deal
Netflix has announced a $72 billion acquisition of Warner Bros. Discovery's film and television studios, along with the HBO Max streaming platform. This landmark cash-and-stock deal, approved by both companies' boards, aims to bolster Netflix's content library with iconic franchises like "Harry Potter" and "Game of Thrones." Expected to close by 2026, the deal faces potential antitrust scrutiny but positions Netflix as an even stronger player in the streaming and entertainment landscape.
Macy’s Surprises with Profit Amid Turnaround Plan
Macy’s reported an unexpected profit in Q3, driven by a 3.2% rise in comparable sales and strategic improvements under CEO Tony Spring. The company raised its annual financial guidance as its turnaround strategy, including store modernization and exclusive merchandise, begins to resonate with shoppers. Despite sales growth in revamped stores, overall net sales slightly declined due to store closures, highlighting the challenges ahead.
Thanksgiving Market Rally: Robinhood, Dell, Deere Moves
Ahead of Thanksgiving, U.S. markets rallied with the Dow, S&P 500, and Nasdaq seeing nearly 1% gains. Robinhood shares surged 10% following its LedgerX acquisition, while Dell jumped 7% on strong AI demand. Conversely, Deere dropped 5% due to weak forecasts, and HP fell 2% amid layoffs and cost-cutting measures.
Best Buy Raises Sales Outlook for Holiday Season
Best Buy exceeded Wall Street expectations for Q3, reporting a 2.7% rise in comparable-store sales, driven by strong demand for tech products like computers, gaming systems, and mobile phones. The retailer raised its full-year revenue forecast to $41.65-$41.95 billion and expects a 0.5%-1.2% increase in same-store sales. CEO Corie Barry highlighted innovation and replacement cycles as key growth factors. With these results, Best Buy is optimistic about the upcoming holiday season, despite broader economic uncertainties.
Fed's December Rate Cut Odds Rise Amid Debate
New York Fed President John Williams has indicated potential room for a December rate cut, citing a softening labor market and easing inflation risks. His comments significantly shifted market expectations, with rate cut odds rising to 70% from 35%. However, other Fed officials remain cautious, emphasizing the need for clear evidence before adjusting rates further. The ongoing debate underscores the Fed's balancing act between inflation control and supporting the job market.
Ray Dalio Warns of Market Bubbles, Advises Caution
Hedge fund legend Ray Dalio highlights the presence of market bubbles, comparing the current environment to historic periods like the 1929 crash and the dot-com bubble. While not advising immediate selling, Dalio recommends investors protect themselves by diversifying assets, holding gold, and reducing credit exposure. He emphasizes that bubbles burst when economic realities catch up, often triggered by external catalysts such as monetary tightening. Despite the warning signs, Dalio suggests investors remain cautious yet strategic in navigating the market.
Nvidia Q3 Earnings Highlight AI Boom
Nvidia reported record-breaking Q3 revenue of $57 billion, marking a 62% year-over-year growth and exceeding Wall Street expectations. CEO Jensen Huang emphasized surging demand for AI-driven technologies, with Blackwell chips leading the way. The company projected Q4 revenue between $63.7 billion and $66.3 billion, reflecting the growing adoption of AI solutions across industries. Nvidia's strong performance has bolstered confidence in the AI sector, influencing related stocks like AMD and Micron.
Dutch Suspends Control of Nexperia Amid Chip Talks
The Dutch government has suspended its intervention in Nexperia, a Chinese-owned chipmaker, in a goodwill gesture following constructive talks with China. The dispute, which had disrupted global automotive chip supply chains, now shows signs of resolution as Beijing has eased export restrictions. Dutch Economic Affairs Minister Vincent Karremans expressed optimism regarding the restoration of chip supplies, emphasizing the importance of continued cooperation between the two nations to ensure stable global supply chains.
Lower Tariffs to Ease Coffee, Banana Prices? Experts Weigh
The White House has announced new trade agreements with Latin American countries to lower tariffs on goods like coffee and bananas. Experts suggest this could modestly reduce prices for these staples, though the impact may be limited due to global supply chain issues and weather-related shortages. While bananas are expected to see slight price relief, coffee prices may remain high as major exporters like Brazil are not included in the tariff reductions.
