Overview of Recent US Market Performance
On Thursday, December 26th, major US stock indices closed nearly flat. Market performance has partially retreated from post-election gains observed since former President Trump’s victory.
The Dow Jones Industrial Average edged up by 28.77 points, or 0.07%, closing at 43,325.80. Meanwhile, the Nasdaq Composite dipped 10.77 points, or 0.05%, ending at 20,020.36. The S&P 500 also saw a slight decline of 2.45 points, or 0.04%, settling at 6,037.59.
Persistent concerns around trade policies and inflation have tempered earlier market optimism. Analysts note that while expectations for economic growth initially surged post-election, uncertainties regarding future trade relations and fiscal policies have emerged.
Labor Market Data and Economic Indicators
The US Labor Department reported a slight decrease in initial jobless claims. For the week ending December 21st, claims fell by 1,000 to a seasonally adjusted 219,000, below the expected 224,000.
However, continuing jobless claims rose to 1.91 million for the week ending December 14th. This marks the highest level in over three years, indicating that unemployed individuals are taking longer to secure new positions.
Performance of Major Technology Stocks
Most large-cap technology stocks experienced declines:
- Tesla decreased by over 1%
- Amazon fell by 0.87%
- Meta Platforms (Facebook) dropped by 0.72%
- Microsoft declined by 0.28%
- Alphabet (Google) edged down by 0.26%
- NVIDIA slipped by 0.21%
In contrast, Apple's stock rose by 0.32%, reaching a new all-time high for the fourth consecutive day. Analysts from Wedbush, including Dan Ives, suggest that Apple is poised for a significant growth cycle in 2025, driven by an AI-fueled iPhone upgrade wave that the market may be underestimating.
Semiconductor Industry and AI Investment Trends
Doug Lefever, CEO of Advantest—a major supplier to NVIDIA and the world’s largest semiconductor test equipment company—commented on industry dynamics. He highlighted that monitoring spending patterns of US tech giants on artificial intelligence is crucial.
Lefever noted that if data center investments slow, demand for AI-enabled smartphones could help shield certain segments of the semiconductor industry from a downturn.
In related news, Tesla has secured a supply agreement with EVE Energy for energy storage batteries. Production at EVE’s Malaysia facility is slated to begin supplying Tesla’s US operations by 2026.
Russia’s Shift to Bitcoin in Foreign Trade
In a significant policy reversal, Russian Finance Minister Anton Siluanov announced that Russia has begun using Bitcoin and other digital currencies in foreign trade settlements. This move is a direct response to Western sanctions, which have complicated financial transactions with key trade partners like Turkey.
Russia had previously considered a blanket ban on cryptocurrencies in 2022 over concerns about financial stability. However, 2024 legislation has not only legalized their use in international settlements but also legitimized cryptocurrency mining.
Siluanov stated that under an experimental legal framework, "we can use Bitcoin mined in Russia for foreign trade transactions." This allows Russian businesses to bypass traditional banking channels, which have become wary of handling transactions involving Russian entities due to regulatory scrutiny.
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Notable Gains in US-Listed Chinese Stocks
The Nasdaq Golden Dragon China Index, which tracks Chinese companies listed in the US, rose by 0.42%. Several constituents saw substantial gains:
- Kingsoft Cloud surged over 14%
- 21Vianet Group climbed more than 10%
- Pony AI advanced over 9%
- ZEEKR Intelligent Technology rose more than 8%
- GDS Holdings gained over 5%
This upward movement reflects renewed investor interest in the sector amid evolving regulatory and market conditions.
Frequently Asked Questions
Why is Russia using Bitcoin for foreign trade?
Russia is leveraging Bitcoin to circumvent financial sanctions imposed by Western nations. Traditional cross-border payment channels have become restrictive, and cryptocurrencies offer an alternative settlement mechanism for international trade, especially with partners hesitant to use the US dollar or EU-based systems.
How did US stock indices perform recently?
Major indices like the Dow Jones, Nasdaq, and S&P 500 closed nearly flat in recent sessions. Markets have given back some of the gains achieved after the last presidential election, reflecting concerns about future trade policy and inflationary pressures.
What is driving Apple’s stock performance?
Apple’s consistent rally is attributed to optimistic analyst projections for 2025. Experts anticipate a multi-year upgrade cycle fueled by new AI-integrated iPhone features, which they believe the market has not yet fully priced in.
Which Chinese stocks saw significant gains?
Companies like Kingsoft Cloud, 21Vianet, Pony AI, ZEEKR, and GDS Holdings were among the top performers. The broader Nasdaq Golden Dragon China Index also posted positive returns, indicating a favorable trading session for US-listed Chinese companies.
What are the concerns in the semiconductor industry?
Industry leaders are monitoring potential slowdowns in AI-related capital expenditure from large tech firms. While data center investments remain a key growth driver, demand for AI smartphones is seen as a potential buffer for the semiconductor sector should broader spending decline.
How are US labor market conditions evolving?
Although initial jobless claims have decreased slightly, continuing claims have reached a multi-year high. This suggests that while layoffs may be stable, finding new employment is taking longer for many Americans, indicating some softening in labor market conditions.