The U.S. stock markets experienced a significant surge this week, propelling the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average to new record highs. Excitement around AI investments and anticipation of Federal Reserve rate cuts fueled this remarkable rally. The S&P 500 saw a rise of approximately 1.1%, while the tech-centric Nasdaq Composite increased by around 0.9%, and the Dow experienced a gain of about 0.7%.
December’s core personal consumption expenditures price index, released on Friday, aligned with monthly expectations but fell slightly short of yearly forecasts. This index is crucial as it serves as a key inflation measure for the Federal Reserve in its monetary policy decisions.
Here’s a look back at some of our top stories from this eventful week.
Rising Optimism: The Bulls
“Nvidia, AMD To Triumph Over Q4 Market Weakness With Cutting-Edge AI, Says Analyst: What To Expect From The Chipmakers” by Shanthi Rexaline predicts that Nvidia Corp. and Advanced Micro Devices, Inc. are expected to outperform Q4 market challenges, driven by their advancements in AI technology.
“Amazon Stock Cheapest It’s Been In Years? Why This Investor Keeps Buying Up Shares” by Adam Eckert explains Stephanie Link’s continued investment in Amazon.com Inc. due to its appealing valuation and diverse growth avenues, especially in AWS and retail margins.
“DOGE To Hit 10 Cents? Crypto Analyst Predicts Dogecoin Rally On Musk’s X App Payment Buzz, Says ‘Coins Like FLOKI Will Follow'” by Mehab Qureshi discusses predictions of Dogecoin’s rise to $0.10, fueled by speculations around its integration with Elon Musk’s X app payment feature, and the potential knock-on effect on similar coins like FLOKI.
Additional bullish calls of the past week include:
“$3,500 Apple Headset? No Problem! Apple Vision Pro Blows Past Expectations, Wedbush Upgrades 2024 Sales Prediction”
“Robinhood’s Financial Trajectory Looks Upward With Fresh Strategy, Analyst Weighs In”
“Alibaba Springs Back To Life As Co-Founders Scoop Up Shares: ‘It’s Jack Ma — Hot For His Stock'”
Caution Ahead: The Bears
“Tesla Analysts Cut Projections After Q4 Results: Stock ‘Egregiously Overvalued,’ ‘Difficult To Get Optimistic'” by Chris Katje highlights analysts’ cautious stance on Tesla Inc. post-Q4 earnings, citing lower delivery growth and declining margins as key concerns.
“Arthur Hayes On Bitcoin: ‘I Think We Break $40K,’ Traders See ‘Halving In 4 Months’ For Next Price Upswing” by Khyathi Dalal reveals BitMEX co-founder Arthur Hayes’s prediction of Bitcoin dropping below $40,000, contrasting with his previous more bullish outlook.
“Apple’s Vision Pro Hits Pre-Order Jackpot, But Analyst Warns Of Demand Dip Ahead Based On Crucial Metric” by Ananya Gairola highlights Ming-Chi Kuo’s analysis of Apple Inc.’s Vision Pro pre-orders, suggesting initial success but potential future demand challenges based on unchanged shipping times post-launch.
For more bearish takes, be sure to see these posts:
“Jim Cramer Cut Tesla From The ‘Magnificent 7’: Here’s His New Name For The Basket Of Mega-Cap Tech Stocks”
“Plug Power Analyst Turns Bearish: ‘Even With $1.6 Billion In Funding We Are Skeptical'”
“Google’s Sundar Pichai Wants To Focus On ‘Durable Cost Savings’ In 2024 While His Engineers Ring Alarm Bells Over ‘Lack Of Vision'”