In a December meeting that will be remembered for its seismic impact on markets, the Federal Reserve delivered a widely anticipated 25-basis-point interest rate cut Wednesday, bringing the target <a href="https://www.benzinga.com/news/econ-s/24/12/42561549/fed-slashes-interest-rates-by-0-25-as-predicted-december-dot-plot-flags-only-2-potential-cuts-in-2025">range to 4.25%-4.5%.</a>



Yet, it wasn't the rate cut itself that shocked Wall Street: it was the Fed&#8217;s revised economic forecasts and Chair Jerome Powell's stance that crushed expectations for deeper rate cuts in 2025.



In its December economic forecasts, the Fed raised inflation projections for 2025, signaling that only two rate cuts might be on the table for the year. This marked a dramatic shift from the expectations that had fueled investor optimism in recent weeks.



Powell cemented this hawkish tone during the press conference, stating that after a 100-basis-point reduction in 2024, the Fed would enter a <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42563299/feds-powell-shocks-markets-its-a-new-phase-were-significantly-closer-to-neutral">&#8220;new phase&#8221; of monetary policy</a>. With rates nearing neutral levels, Powell emphasized the importance of a cautious approach, erasing any lingering hopes for aggressive easing.



In true Grinch fashion, Powell's message drained investor hopes for a Santa Claus Rally, a seasonal market trend that sees equities showing strong gains in the second half of December.



The S&amp;P 500 — as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — tumbled 3%, recording its worst single-day drop since September 2022, while the U.S. Dollar Index surged to a two-year high as <a href="https://www.benzinga.com/news/econ-s/24/12/42564807/powell-triggers-market-carnage-vix-spikes-58-stocks-plummet-dollar-hits-2-year-highs-bitcoin-nosedives">investors recalibrated their expectations</a>.



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) demonstrated significant sensitivity to macroeconomic developments, dropping below $100,000 after reaching a record high of $108,388 one day prior to the Federal Reserve meeting.



Friday brought a brief reprieve as the Fed's preferred inflation gauge for November came <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42619788/market-volatility-halts-on-soft-inflation-data-yet-traders-remain-wary-of-fighting-the-fed-10-etfs-moving-friday">in lower than expected.</a> Yet the Fed's sting has left lingering wounds that only sustained progress in disinflation can heal.



The focus now shifts to 2025. Investors are bracing for the fiscal policies of the incoming Trump administration, the potential for a government shutdown and the broader implications of Fed monetary policy.



<h1 class="wp-block-heading">ChargePoint-GM Collaboration</h1>



ChargePoint Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHPT#NYSE">CHPT</a>) and General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) partnered to deploy ultra-fast EV charging ports at key locations across the U.S. This strategic move aims to enhance electric vehicle infrastructure and accelerate <a href="https://www.benzinga.com/24/12/42553394/chargepoint-inks-pact-with-general-motors-eyes-installing-ultra-fast-charging-ports-at-key-locations">EV adoption nationwide</a>.



<h1 class="wp-block-heading">Palantir Defies Gravity</h1>



Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>)&#8217;s stock surged Friday after securing a key U.S. Army deal and joining the Nasdaq-100 index. The stock's year-to-date <a href="https://www.benzinga.com/trading-ideas/technicals/24/12/42620067/palantir-defies-gravity-army-deal-nasdaq-100-spotlight-fuel-rally">gains now top 340%.</a>



Read Now: 



<ul>
<li><a href="https://www.benzinga.com/government/regulations/24/12/42623343/exclusive-weight-loss-market-experts-scoop-up-novo-nordisk-stock-after-worst-drop-since-2002-following-drug-trial-miss">EXCLUSIVE: Weight-Loss Market Experts Scoop Up Novo Nordisk Stock After Worst Drop Since 2002 Following Drug Trial Miss</a></li>
</ul>



Photo: Shutterstock

Cryptocurrency

Equities

Large Cap

Commodities

Federal Reserve

$BTC

CHPT

PLTR

Fed Cuts Interest Rates, But Powell Spoils Santa Claus Rally; Dollar Surges To Over 2-Year High, Bitcoin Sinks Below $100,000: This Week In The Market

Billionaire Stanley Druckenmiller, a former confidant of George Soros and the founder of Duquesne Capital, built his career off making <a href="https://www.benzinga.com/general/24/03/37598371/stanley-druckenmillers-secret-sauce-the-two-stocks-dominating-a-quarter-of-his-three-billion-dollar">large, measured bets</a>. His latest large wager has paid off.



The famed investor has steadily increased his stake in Natera Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTRA#NASDAQ">NTRA</a>), a clinical genetic testing company, since the third quarter of 2022, according to quarterly 13F filings. Druckenmiller owned 414,955 shares in 2022&#8217;s third quarter, 893,030 shares in 2023 and 3,566,850 shares in 2024.



Druckenmiller&#8217;s position now exceeds $575 million, nearly 3% of the Austin, Texas-based company&#8217;s market capitalization and 15% of Duquesne Capital&#8217;s portfolio.



Since Duquesne Capital revealed its stake in a 13F filing, its stock has traded up 268%. Meanwhile, the healthcare industry as a whole, as measured by the iShares US Healthcare ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYH#NYSE">IYH</a>), has risen a touch over 16%. Thus, Druckenmiller&#8217;s gamble has outperformed its sector by over 250%.



Also Read: <a href="https://www.benzinga.com/markets/equities/24/12/42624528/government-shutdown-threat-stocks-wobble-holiday-travel-and-paychecks-could-face-delays-what-you-need-to-know">Government Shutdown Threat: Holiday Travel, Paychecks Could Face Delays If No Deal Reached</a>



Natera specializes in genetic testing and diagnostics to improve healthcare outcomes. The company develops and markets tests that analyze DNA to provide insights into hereditary conditions, reproductive health, organ transplant health, and oncology. 



Natera's flagship products include non-invasive prenatal tests (NIPTs) like Panorama, which screens for chromosomal abnormalities in a fetus, and Horizon, a carrier screening test for hereditary conditions.



In recent years, Natera has expanded its focus to oncology and organ transplant monitoring. In oncology, the company's Signatera test detects minimal residual disease (MRD) in cancer patients, helping to guide treatment decisions and monitor for recurrence with precision.



In the transplant space, the Prospera test assesses organ health by measuring donor-derived cell-free DNA, providing early indications of transplant rejection.



The company has beaten earnings and revenue expectations over the past four quarters. Revenue has increased from $625 million in 2021 to $1.5 billion over the past twelve months, while margins have also expanded. The company has posted a positive operating cash flow since March.



Also Read:



<ul>
<li><a href="https://www.benzinga.com/government/regulations/24/12/42623343/exclusive-weight-loss-market-experts-scoop-up-novo-nordisk-stock-after-worst-drop-since-2002-following-drug-trial-miss">EXCLUSIVE: Weight-Loss Market Experts Scoop Up Novo Nordisk Stock After Worst Drop Since 2002 Following Drug Trial Miss</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

Health Care

Hedge Funds

Trading Ideas

General

NTRA

Stanley Druckenmiller's Top Holding Has Outperformed Its Sector By 252%

Bitcoin&#8217;s (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) sell-off on Friday saw prices dip below $93,000, but Bitwise CIO Matt Hougan argues that the <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42614273/bitcoin-crashes-10-ethereum-xrp-down-18-dogecoin-craters-28-what-is-going-on">current pullback is a &#8220;hiccup&#8221;</a> rather than a trend reversal.



Hougan sees strong underlying factors including <a href="https://www.benzinga.com/news/events/24/11/41992186/could-new-legislation-finally-bring-clarity-to-us-crypto-rules-industry-expert-weighs-in">regulatory tailwinds</a>, <a href="https://www.benzinga.com/24/12/42516240/the-doors-have-been-blown-off-how-bitcoin-etfs-are-reshaping-investment-strategies">institutional adoption</a> and <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41847581/el-salvadors-bitcoin-bet-is-paying-off-heres-how-much-the-country-is-up">Bitcoin purchases by governments</a> as structurally bullish factors for Bitcoin.



<h2 class="wp-block-heading">Crypto&#8217;s Turbulent Friday Trading Session</h2>



The cryptocurrency market experienced a volatile session Friday, triggered by the <a href="https://www.benzinga.com/24/12/42564443/santa-came-early-with-rate-cut-but-federal-reserve-brings-coal-next-year-experts-weigh-in-on-rate-cut-feds-2025-projections">Federal Reserve&#8217;s decision</a> to lower its anticipated rate cuts for the coming year.



Bitcoin plummeted from a high of $108,135 to below $92,805, before rebounding slightly, currently trading around $96,950, down 1.2% on the day.



Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) also traded down by 1% to $3,430.



This sharp decline mirrored a <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42615908/feds-preferred-inflation-gauge-falls-more-than-expected-markets-breathe-sigh-of-relief">broader pullback in risk assets</a>, with the S&amp;P 500 dropping 3% and the Russell 2000 Small Cap Index falling 4.4% following the Fed announcement.



The Fed&#8217;s move, while expected in terms of a <a href="https://www.benzinga.com/24/12/42610958/expecting-up-to-four-fed-rate-cuts-in-2025-says-this-analyst-despite-hawkish-powell-saying-it-was-close-on-the-decision-to-cut-or-not-heres-why">25 basis point rate cut</a>, surprised markets with its <a href="https://www.benzinga.com/24/12/42564443/santa-came-early-with-rate-cut-but-federal-reserve-brings-coal-next-year-experts-weigh-in-on-rate-cut-feds-2025-projections">reduced forecast</a> for future cuts. It is now projecting only two in 2025, down from four.



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42623985/rattled-hawk-tuah-girl-haliey-welch-resurfaces-after-meme-coin-scandal-i-take-this-situation-extremely-seriously">Rattled &#8216;Hawk Tuah Girl&#8217; Haliey Welch Resurfaces After Meme Coin Scandal: &#8216;I Take This Situation Extremely Seriously&#8217;</a>



<h2 class="wp-block-heading">The Fed Matters For Crypto — But Other Factors Matter More</h2>



Potentially higher interest rates traditionally pressure risk assets, and this announcement initiated an initial sell-off across the board, Matt Hougan noted in a social media thread earlier in the day.



However, he emphasized that leverage within the crypto market acted as a significant catalyst for the deeper-than-expected decline. 



Hougan maintains that the broader bull market trend remains intact — $1.38 billion of liquidated positions in 24 hours notwithstanding.



He claims the Fed is less impactful to the sector than in previous years, and the industry has gained significant internal momentum due to several fundamental shifts.



He points to several key factors supporting the bullish thesis: 



<ul>
<li>An imminent pro-crypto regulatory shift in Washington, see Trump&#8217;s appointment of a &#8216;<a href="https://www.benzinga.com/24/12/42356067/venture-capitalist-david-sacks-appointed-as-white-house-ai-crypto-czar-by-trump">crypto czar</a>.&#8217;</li>



<li>Increasing institutional involvement and ETF flows, such as <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42393396/record-week-bitcoin-etfs-net-25-billion-in-inflows-ethereum-etfs-took-in-12-billion">record-breaking spot ETF flows</a>.</li>



<li>Bitcoin acquisitions by governments and corporations — even <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42601193/senator-lummis-introduces-strategic-bitcoin-reserve-proposal">a strategic Bitcoin reserve</a> may be on the table.</li>



<li>Major technological advancements in the programmable blockchain sector (<a href="https://www.benzinga.com/24/12/42443799/merging-systems-tokenization-and-the-path-to-financial-change">tokenization anyone</a>?).</li>
</ul>



In a series of <a href="https://x.com/Matt_Hougan/status/1869627742561649100">tweets</a>, Hougan also highlighted that Bitcoin&#8217;s 10-day exponential moving average (approximately $102,000) remains above its 20-day exponential moving average (around $99,000), which is a traditional bullish indicator for him. 



This technical measure has historically been a reliable gauge of market trends and suggests the medium term trend for Bitcoin, despite the volatility, is still positive.



<h2 class="wp-block-heading">What Technical Indicators Are Saying</h2>



According to James Toledano, Chief Operating Officer at Unity Wallet, &#8220;Profit taking is definitely at play here, with Bitcoin trading volume rising 24% in the last day and Bitcoin ETF outflows hitting a record $672M in 1 day.&#8221; 



This shows recent price volatility is not solely attributable to external influences, but internal to the market as well.



&#8220;Many people who invested earlier in the year will have doubled their money and those who invested years ago, made more than they ever dreamt possible,&#8221; he told Benzinga.



Toledano also noted that whilst Bitcoin trading volume is skewed towards selling, altcoins have been subject to significant trading activity.



Ethereum trading volume is up 45% over 24 hours, with 70% of that buying activity.



XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>), currently up 1% on the day and recovering from a 20% drop earlier in the day, is seeing a similar volume pattern.



BNB (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/bnb/usd">BNB</a>) is also up 1.3% at $670.



However, Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>) is down 1% and Shiba Inu (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/shib/usd">SHIB</a>) down about 5% , hile SUI (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">SUI</a>) is up 7% at press time.



While reduced liquidity in the upcoming holiday period could lead to increased volatility, Toledano added, the absence of major institutional activity may stabilize prices. 



He also pointed out that, based on historic trends, there is no clear pattern at this time of the year.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42617815/are-microstrategys-bitcoin-purchases-on-hold-in-january">Are MicroStrategy&#8217;s Bitcoin Purchases On Hold In January?</a></li>
</ul>



Image: Shutterstock

News

$BNB

$DOGE

$ETH

$SHIB

$SUI

$XRP

Bitcoin, Ethereum, XRP, Dogecoin Whipsaw, But These 4 Key Factors Make It A 'Hiccup,' Not A Downturn

Risk sentiment returned to Wall Street on Friday, revitalized by softer-than-expected November inflation data leading to a strong market rebound following the selloff triggered by the <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42615908/feds-preferred-inflation-gauge-falls-more-than-expected-markets-breathe-sigh-of-relief">Federal Reserve&#8217;s recent meeting.</a>



The Personal Consumption Expenditure price index rose 2.4% year-over-year in November, falling short of the 2.5% increase forecasted. The core PCE, a key gauge closely watched by the Fed, also missed expectations, rising 2.8% compared to the anticipated 2.9%.



By midday Friday, all major indices were in rally mode, with broad-based gains across sectors. In the S&amp;P 500, 480 companies traded higher, and every sector advanced as investors welcomed the reprieve in inflationary pressures.



The real estate sector led the charge, rebounding sharply after being hit hardest in the aftermath of the Fed meeting. Small-cap stocks in the Russell 2000 also posted robust gains, powered by a strong recovery in regional banks.



The travel industry soared, driven by upbeat earnings and optimistic guidance from Carnival Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>), which fueled enthusiasm across the sector. The cruise line rose by 6%, eyeing the highest close since October 2021. 



In the bond market, yields dropped by approximately 5 basis points across the curve, boosting Treasury prices. The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) gained nearly 1%, recovering some ground after a 3% slide over the previous two sessions. The dollar softened, declining 0.6%, while gold gained over 1%. 



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) attracted dip buyers after plunging to $92,118. Although the cryptocurrency pared its daily losses, it remains on track for its worst weekly performance in four months.



<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices, ETFs</h3>



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day %chg</td></tr><tr><td>Dow Jones</td><td>42,853.53</td><td>1.2%</td></tr><tr><td>S&amp;P 500</td><td>5,934.51</td><td>1.1%</td></tr><tr><td>Russell 2000</td><td>2,246.04</td><td>1.1%</td></tr><tr><td>Nasdaq 100</td><td>21,339.90</td><td>1.1%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 1:30 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent121924&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 1.1% to $592.31.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 1.2% to $429.61.</li>



<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) edged 1.4% higher to $521.53.</li>



<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) soared 1.2% to $222.59.</li>



<li>The&nbsp;Real Estate Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) outperformed, up by 2.3%; the&nbsp;Consumer Staples Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>) lagged, up 0.6%.</li>
</ul>



<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices, ETFs</h3>



<ul>
<li>Novo Nordisk A/S (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>) plummeted 17%, marking its worst single-day drop since April 2002. after disappointing weight-loss trial data for<a href="https://www.benzinga.com/government/regulations/24/12/42623343/exclusive-weight-loss-market-experts-scoop-up-novo-nordisk-stock-after-worst-drop-since-2002-following-drug-trial-miss"> its obesity drug, CagriSema.</a></li>



<li>Enphase Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ENPH#NASDAQ">ENPH</a>) rallied over 8% as analysts at OTR Research raised the stock rating from Negative to Mixed.</li>



<li>Norwegian Cruise Line Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>) also rallied over 6% in reaction to Carnival Cruise&#8217;s upbeat results. Other travel-related companies seeing strong gains Friday included Airbnb Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ABNB#NASDAQ">ABNB</a>), up 3.9%, Hyatt Hotels Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/H#NYSE">H</a>), up 3.4%, and Royal Caribbean Cruise Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RCL#NYSE">RCL</a>), up 3.6%.</li>



<li>Nike Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) fell 1.2% in reaction to its latest quarterly results and FedEx Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) inched 0.6% higher. </li>
</ul>



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/government/regulations/24/12/42623343/exclusive-weight-loss-market-experts-scoop-up-novo-nordisk-stock-after-worst-drop-since-2002-following-drug-trial-miss">EXCLUSIVE: Weight-Loss Market Experts Scoop Up Novo Nordisk Stock After Worst Drop Since 2002 Following Drug Trial Miss</a></li>
</ul>



Photo: Shutterstock

Macro Economic Events

Bonds

Broad U.S. Equity ETFs

Travel

Treasuries

Econ #s

Economics

ETFs

ABNB

ENPH

NCLH

XLRE

Wall Street Rallies On Soft Inflation Data, Bonds Rebound, Travel Stocks Surge: What's Driving Markets Friday?

Wall Street is watching for developments in Washington, D.C. Friday after <a href="https://www.benzinga.com/24/12/42607744/house-rejects-trump-endorsed-backup-plan-to-prevent-government-shutdown-and-suspend-debt-limit-lawmakers-chant-he">Thursday's failed attempt</a> to avert a government shutdown. Some stocks remain wobbly as the day wears on and a midnight deadline approaches. 



What Happened: The House turned down a contingency plan proposed by Speaker Mike Johnson (R-La) only hours before the vote Thursday. The proposal failed to secure the necessary two-thirds majority. 



Backed by President-elect Donald Trump, the funding bill ran into trouble mainly from Democrats due to its inclusion of a two-year debt limit suspension. The bill would have maintained government funding&nbsp;at existing levels through mid-March, suspended the debt limit&nbsp;for two years and allocated approximately&nbsp;$100 billion in disaster relief&nbsp;and about $10 billion for&nbsp;farmer economic assistance.



<h2 class="wp-block-heading">Market Movement, Sectors Affected </h2>



Defense Sector: Companies in the defense industry, such as Lockheed Martin (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) , Northrop Grumman (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOC#NYSE">NOC</a>) and L3Harris Technologies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LHX#NYSE">LHX</a>) often depend heavily on government contracts. During a shutdown, delays in contract awards and payments can occur, potentially impacting cash flow and stock performance.



Health Care Sector: Firms that receive substantial revenue from government health care programs, like Medicare and Medicaid, might experience payment delays during the shutdown. This could affect companies such as UnitedHealth Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) and Humana (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUM#NYSE">HUM</a>).



Aerospace Sector: Aerospace companies that rely on federal contracts or regulatory approvals could face delays, potentially affecting their operations and stock prices. These stocks include Lockheed Martin and Boeing (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>)



Consumer, Retail Sectors: A shutdown can lead to furloughs for federal employees, resulting in delayed paychecks. This reduction in disposable income may decrease consumer spending over the holidays, adversely affecting retail companies and consumer goods manufacturers.



Financial Sector: Government shutdowns can delay economic reports and data releases, creating uncertainty in financial markets. Naturally, this uncertainty could lead to increased market volatility, impacting financial institutions and investment firms.



<h2 class="wp-block-heading">Holiday Travelers, Take Note</h2>



With the busy holiday season upon us and the Transportation Security Administration expecting to screen up to 40 million air travelers in the coming weeks, air traffic controllers and essential airport workers could be doing their jobs without the prospect of a paycheck.



Before the Capitol moved closer to a shutdown, the AAA predicted over 119 million people would hit the roads over the holidays, <a href="https://www.nytimes.com/2024/12/20/travel/government-shutdown-travel.html">noted</a> the NY Times. If no funding solution is reached by midnight, the already crowded highways could be even more so as planes and trains fill up or, worse, face cancellations. No matter what happens in D.C., Amtrak is expected to keep the trains running on schedule.



Now Read:



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42619788/market-volatility-halts-on-soft-inflation-data-yet-traders-remain-wary-of-fighting-the-fed-10-etfs-moving-friday">Market Volatility Halts On Soft Inflation Data, Yet Traders Remain Wary Of Fighting The Fed: 10 ETFs Moving Friday</a></li>
</ul>



Photo via Shutterstock

Government

Politics

Markets

Government Shutdown Threat: Holiday Travel, Paychecks Could Face Delays If No Deal Reached

Nike Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) analysts are highlighting the company&#8217;s new turnaround plan under CEO Elliott Hill with a focus on inventory, product innovation and wholesale partnerships being key takeaways Friday following the company&#8217;s<a href="https://www.benzinga.com/general/sports/24/12/42605414/nike-q2-earnings-revenue-beat-eps-beat-shares-jump-nike-being-nike-again"> second-quarter financial report.</a>



The Nike Analysts: Telsey analyst Cristina Fernández downgraded Nike shares from Outperform to Market Perform and lowered the price target from $93 to $80.



JPMorgan analyst Matthew Boss maintained a Neutral rating and a price target of $73.



Goldman Sachs analyst Brooke Roach reiterated a Buy rating and lowered the price target from $97 to $91.



Needham analyst Tom Nikic reiterated a Buy rating and a price target of $84.



Truist analyst Joseph Civello reiterated a Buy rating and lowered the price target from $97 to $90.



Piper Sandler analyst Anna Andreeva maintained a Neutral rating and a price target of $72.



Bank of America analyst Lorraine Hutchinson reiterated a Buy rating and lowered the price target from $95 to $90.



Read Also: <a href="https://www.benzinga.com/24/12/42610441/nikes-new-ceo-says-we-lost-our-obsession-with-sport-as-he-rebukes-old-strategies-on-performance-marketing-isolation-of-wholesalers-aims-to-create-demand">Nike&#8217;s New CEO Blames Promotions For Declining Profits, Says Turnaround Efforts May Hurt As Company Moves To Clear Excess Inventory: &#8216;We Lost Our Obsession With Sport&#8217;</a>



Telsey on Nike: A turnaround path for Nike is in place, but may take longer than expected and could be costly, Fernández said in a new investor note.



The analyst said the turnaround path could require larger investments in brand marketing and hurt sales and profitability over the next year.



"In addition, we lack clarity around the length of time it will take to clean up inventory, introduce significant product newness, rebuild wholesale partnerships, and elevate Nike digital by reducing promotions in order to return Nike to growth," Fernández said.



Fernandez said there is "some early progress" with marketing and products, but things remain in the early stages.



JPMorgan on Nike: With guidance below analyst consensus, Nike could be setting up for a "crawl, walk, run setup," Boss said in a new investor note.



The phases are broken down as a crawl in fiscal year 2025 to complete the franchise lifecycle management, a walk phase in fiscal 2026 with new product innovation and run in fiscal 2027 with innovation and a look for the right partners.



"We see an elongated timeline for Nike to re-accelerate revenue growth in the midst of a franchise product lifecycle transition with the global macro backdrop further complicating the path forward," Boss said.



The analyst said the new CEO&#8217;s plan will include additional investment and wholesale discounts to get rid of excess inventory, which could result in higher promotional activity.



Goldman Sachs on Nike: The apparel company is taking immediate action under new CEO Hill, Roach said in a new investor note.



"We think the actions outlined today are the appropriate strategic moves to reset Nike to return to future growth," Roach said.



The analyst said Nike is beginning to show improvement in several areas, but inventory remains a key concern moving forward.



"We believe that the combination of a return to marketing growth, investing in the key city strategy and reestablishing partnership with wholesale partners are appropriate in the long term."



Needham on Nike: Second-quarter financial results were better than expected, Nikic said in a new investor note.



The analyst said Hill outlined the Nike vision that will be challenging in the near term.



"Climbing back up the ‘Hill' will be tough, but the path is clear," Nikic said.



Nikic added that Hill coming back to Nike is similar to a veteran athlete coming out of retirement to rescue a fallen sports team.



The analyst said Hill's commentary on re-establishing key wholesale partnerships could be encouraging for Foot Locker Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FL#NYSE">FL</a>), who is the company's largest wholesale partner.



Truist on Nike: Sentiment in Nike could be bottoming with the turnaround plan underway, Civello said in a new investor note.



The analyst said Hill's turnaround efforts put pressure on the second half 2025 outlook but could lead to more beat and raise guidance opportunities in the future and accelerate the timeline for a return to growth.



"We're encouraged about the team's sense of urgency and their strategic focus areas, especially improving wholesale positioning, elevating Nike's Direct business and refocusing marketing on bolder brand stories," Civello.



The analyst said Hill's decision to "rip off the Band-Aid" is great and could improve the turnaround plan.



Piper Sandler on Nike: The apparel company is in the early innings of a turnaround, Andreeva said in a new investor note.



"Doing the right things, but getting back to winning takes time," Andreeva said.



The analyst said Nike's third and fourth quarters will be hit hard for sales and profitability as the company makes room for new products and innovation.



"We view the move as necessary but also creating potentially longer-lasting lack of visibility."



Bank of America on Nike: Hill's strategy to reduce inventory to make way for new product innovation is the right Nike strategy, Hutchinson said in a new investor note.



"The anticipated reset sets the stage for a healthier Nike," Hutchinson said.



The analyst said this move will reduce profitability in the near-term while creating a "healthier business" in the long term.



NKE Price Action: Nike stock is down 0.44% to $76.75 on Friday versus a 52-week trading range of $70.75 to $123.30. Nike stock is down 29% year-to-date and has fallen 24% over the last five years.



Read Next: 



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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42562515/nike-q2-earnings-preview-analyst-says-athletic-brand-early-in-turnaround-journey-with-new-ceo">Nike Q2 Earnings Preview: Analyst Says Athletic Brand Early In &#8216;Turnaround Journey&#8217; With New CEO</a></li>
</ul>



Photo: Shutterstock

Analyst Color

Downgrades

Price Target

Reiteration

Analyst Ratings

Nike Stock Turnaround Path Clear, Analyst Says: 'Getting Back To Winning Takes Time'

Novo Nordisk A/S (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>) saw its stock crater nearly 20% on Friday, eyeing its worst single-day drop since April 2002, after releasing underwhelming weight-loss trial results for its much-hyped <a href="https://www.benzinga.com/24/12/42613036/novo-nordisks-hybrid-weight-loss-drug-falls-short-on-expectations-stock-plunges">obesity drug, CagriSema. </a>



To put the move in perspective, the only steeper plunge in the Danish pharma giant's history was a 26.2% collapse during the infamous Black Monday crash of October 1987.



Once the poster child of the obesity drug boom, Novo failed to meet the market's sky-high expectations, sparking a $20 billion wipe out in market value.



Here's what happened—and why some analysts believe Wall Street might have overreacted.



<h3 class="wp-block-heading">Trial Results Fall Short of High Expectations</h3>



CagriSema, a combination of cagrilintide and semaglutide, is part of Novo Nordisk's REDEFINE clinical program, designed to compete in the lucrative obesity drug market. 



The REDEFINE 1 Phase 3 trial, which involved 3,417 participants with obesity or overweight conditions, demonstrated a 22.7% weight loss after 68 weeks for patients taking CagriSema. 



While impressive compared to the 2.3% weight loss with placebo, the result was slightly below Novo's previously teased goal of a 25% reduction.



By comparison:



<ul>
<li>CagriSema: 22.7% weight loss</li>



<li>Semaglutide alone: 16.1% weight loss</li>



<li>Cagrilintide alone: 11.8% weight loss</li>



<li>Placebo: 2.3% weight loss</li>
</ul>



Additionally, 40.4% of patients taking CagriSema lost at least 25% of their body weight, compared to just 16.2% with semaglutide and a negligible 0.9% with placebo.



While the trial data were statistically significant, they fell shy of the hype surrounding Novo's claims that CagriSema could deliver 25% weight loss without added side effects.



<h3 class="wp-block-heading">Analysts Call The Selloff &#8216;Overdone&#8217;</h3>



Despite the sharp decline, several industry insiders believe the market overreacted. 



Maurits Pot, founder of Tema ETFs, which manages the GLP-1 Obesity &amp; Cardiometabolic ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HRTS#NYSE">HRTS</a>), told Benzinga: "This is the latest major event in the obesity space in what has proven to be a very volatile second half of the year.&#8221;



Tema ETFs had already been underweight Novo, holding just a 3.99% stake prior to the REDEFINE 1 results. 



Pot has been for long championing the case that the weight-loss market is far from being dominated by a duopoly – Novo Nordisk and Ely Lilly &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>).



&#8220;This latest readout from Novo today underscores why only betting on NOVO and LLY in the GLP-1 is very risky and has not worked in the second half of 2024,&#8221; he stated.



Despite this, he described Novo Nordisk&#8217;s sharp selloff as an &#8220;overreaction&#8221; and told Benzinga that the HRTS fund is taking advantage of Friday&#8217;s dip to add more shares.



Goldman Sachs analyst James Quigley offered a similar perspective in a note released Friday.



"While these weight loss data are lower than hoped in the market, we still believe that the product [CagriSema] will be filed and approved by the FDA,&#8221; Quigley stated.



The expert sees Novo's market position moving &#8220;from one where they had a clearly inferior product in Wegovy to one that is on par with Zepbound in terms of weight loss.&#8221;



&#8220;We see the share price move as overdone and with CagriSema offering another high efficacy option, it could still protect part of the longer term obesity franchise,&#8221; he added. 



Goldman maintained a bullish stance on Novo Nordisk, setting a 12-month price target of $148 for the ADR—a potential 75% upside from Friday's market price.



NVO Price Action: Shares of Novo Nordisk were down 18.5% to $84.25 at the time of publication Friday.



Read now: 



<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/12/42612794/djt-stock-plummets-over-5-following-trumps-stake-transfer-heres-more">DJT Stock Plummets Over 5% Following Trump&#8217;s Stake Transfer: Here&#8217;s More</a></li>
</ul>



Photo: Shutterstock

Regulations

Sector ETFs

Eurozone

Exclusives

Movers

HRTS

EXCLUSIVE: Weight-Loss Market Experts Scoop Up Novo Nordisk Stock After Worst Drop Since 2002 Following Drug Trial Miss

Markets saw a brief reprieve Friday as the Federal Reserve&#8217;s preferred inflation gauge came in below expectations, tempering concerns of mounting volatility after this <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42615908/feds-preferred-inflation-gauge-falls-more-than-expected-markets-breathe-sigh-of-relief">week's hawkish policy pivot.</a>



The Personal Consumption Expenditures price index rose 2.4% year-over-year in November, missing the 2.5% forecast. On a monthly basis, the gauge slowed to 0.1%, down from 0.2% in October and below projections for steady growth.



Core PCE, which excludes food and energy, remained at 2.8% annually, slightly under the 2.9% estimate. The monthly core reading also decelerated to 0.1% from 0.3%, undershooting the 0.2% forecast.



Even with Friday's softer inflation print, traders seemed hesitant to enter a buy-everything mode after the sharp volatility seen earlier this week. 



The slightly tempered reaction suggests a degree of caution remains entrenched among investors as they assess the Fed's hawkish tone.



New York Fed President John Williams, interviewed by CNBC, reiterated that &#8220;monetary policy continues to be restrictive.&#8221; 



Williams described the recent inflation data as &#8220;encouraging news,&#8221; highlighting further disinflation progress. Yet, he indicated that &#8220;we&#8217;re still not to our 2% goal&#8221; and reaffirmed the Fed's commitment to achieving that target.



&#8220;I think the economy is a good place and most importantly for me, monetary policy is well positioned,&#8221; he added. 



<h1 class="wp-block-heading">Stock Market Adds Some Gains, Yet &#8220;Don&#8217;t Fight The Fed&#8221; Remains The Mantra</h1>



U.S. equity markets saw modest gains following November&#8217;s softer-than-expected inflation data, as investor caution lingered after the Federal Reserve's hawkish policy shift earlier this week.



<ul>
<li>S&amp;P 500: The broader market index — as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — edged up from 5,800 to 5,840 by 9:50 a.m. in New York, down by 0.4% for the day.</li>



<li>Dow Jones: The SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) gained 0.4% after the release.</li>



<li>Nasdaq 100: Tech stocks fared better, with the Nasdaq QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) adding 0.6% and recovering from steeper pre-market declines.</li>



<li>Real estate was the strongest-performing sector, with the Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) rising by 1.1%. </li>



<li>Russell 2000: Small-cap stocks showed the largest rebound, with the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) up by 0.1%. </li>



<li>The SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) witnessed a 0.8% rally. </li>
</ul>



<h1 class="wp-block-heading">Treasury Yields Ease, Dollar Falls And Gold Rebounds</h1>



Bond markets saw some relief as Treasury yields fell following several days of sharp increases. 



The yield on the 30-year Treasury bond dropped five basis points to 4.70%, lifting the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) by 0.8%. This marks a partial recovery after the ETF plunged more than 3% over the previous two sessions.



Yields on shorter-dated two-year Treasury notes fell by seven basis points.



The U.S. dollar index — as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) — weakened by 0.3%.



Gold prices rose, as the precious metal benefited from lower Treasury yields and the declining dollar. The SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) increased by 0.7%.



In the cryptocurrency market, the iShares Bitcoin Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBIT#NYSE">IBIT</a>) trimmed premarket losses to 0.9%, as the largest cryptocurrency surged back above $95,000 levels. 



Read Next:



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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42606037/etf-market-hits-records-in-2024-inflows-reach-16-trillion-7-funds-top-ranking">ETF Market Sets Records In 2024 As Inflows Reach $1.6 Trillion: 7 Funds Leading Charge</a></li>
</ul>



Photo: Shutterstock

IBIT

Market Volatility Halts On Soft Inflation Data, Yet Traders Remain Wary Of Fighting The Fed: 10 ETFs Moving Friday

Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) is proving unstoppable, with shares soaring following <a href="https://www.benzinga.com/quote/PLTR/news">the announcement of</a> a significant U.S. Army contract extension on Thursday. 



This deal, which could reach $618.9 million over four years, underscores Palantir's growing role in delivering cutting-edge AI and data solutions for military operations.



Read More: <a href="https://www.benzinga.com//node/42572384">Palantir Strengthens Army Partnership, Adds AI And Data Enhancements In $618.9 Million Contract</a>



<h2 class="wp-block-heading">Palantir&#8217;s Winning Partnership With The Army</h2>



Since 2018, Palantir has been a cornerstone of the Army's Vantage program, empowering decision-making with advanced analytics and AI. 



The company's software integrates and visualizes data from multiple sources, enabling operational efficiencies and optimizing processes across the Army enterprise. 



With over 100,000 users, Vantage set a usage record this year, solidifying Palantir's reputation as a go-to tech partner.



<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent122024&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="630" height="493" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20075533/Screenshot-2024-12-20-at-6.06.51-PM.png" alt="" class="wp-image-701635" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20075533/Screenshot-2024-12-20-at-6.06.51-PM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20075533/Screenshot-2024-12-20-at-6.06.51-PM-300x235.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></a></figure>



<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent122024&amp;t=be2bearmibe3na1">Chart created using Benzinga Pro</a>



<h2 class="wp-block-heading">Technical Tailwinds Could Push PLTR Stock Higher</h2>



From a technical standpoint, PLTR stock is in strong bullish territory:



<ul>
<li>Eight-day SMA: $73.58 (PLTR at $71.03 – selling pressure signals)</li>



<li>20-day SMA: $70.76 (bullish signal)</li>



<li>50-day SMA: $58.42 (bullish signal)</li>



<li>200-day SMA: $34.95 (bullish signal)</li>
</ul>



With a Relative Strength Index (RSI) of 56.46, the stock isn't overbought, suggesting room for further gains. The MACD of 4.23 reflects ongoing bullish momentum, adding weight to the upward trajectory.



<h2 class="wp-block-heading">What's Next For Palantir Stock?</h2>



As if the contract extension wasn&#8217;t enough, Palantir will join the Nasdaq 100 Index next Monday, a move expected to draw even more attention from institutional investors. Having already skyrocketed over 330% this year, PLTR stock is showing no signs of slowing down, cementing its status as one of the year's top-performing tech stocks.



With the U.S. Army deal and Nasdaq 100 inclusion, Palantir continues to defy gravity. Investors should prepare for what might be a transformative chapter in its growth journey.



Read Also: 



<ul>
<li><a href="https://www.benzinga.com/24/12/42608224/cathie-woods-thursday-moves-dumps-buzzing-stocks-tesla-and-palantir">Cathie Wood&#8217;s Thursday Moves: Dumps Buzzing Stocks Tesla And Palantir</a></li>
</ul>



Photo: Dennis Diatel/Shutterstock.com

Technicals

Tech

Palantir Defies Gravity: Army Deal, Nasdaq 100 Spotlight Fuel Rally

Trump Media &amp; Technology Group Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DJT#NASDAQ">DJT</a>) experienced a notable decline in its stock value. The company&#8217;s shares fell by 5.31% during pre-market trading on Friday, coinciding with a major decision by&nbsp;Donald Trump.



What Happened: Trump Media &amp; Technology Group Corp saw its shares fall by 5.31% <a href="https://www.benzinga.com/markets/equities/24/12/42609228/trump-transfers-entire-djt-stake-to-revocable-trust-ahead-of-inauguration">during pre-market trading</a> on Friday. according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>. This decline follows Donald Trump&#8216;s decision to transfer his entire stake in the company to his revocable trust.



The transfer involved 114,750,000 shares, which equates to about 53% of the company&#8217;s ownership. The transaction was completed on Tuesday, with Trump named as the sole beneficiary, as per&nbsp;Securities and Exchange Commission filings&nbsp;released on Thursday.



The shares were transferred to the&nbsp;Donald J. Trump Revocable Trust&nbsp;without any monetary exchange. This move comes shortly after Trump participated in ringing&nbsp;the opening bell at the&nbsp;New York Stock Exchange, where&nbsp;DJT&#8217;s stock has more than doubled in value this year.



See Also:&nbsp;<a href="https://www.benzinga.com/trading-ideas/movers/24/12/42567762/bitcoin-ethereum-dogecoin-fall-after-fed-shows-no-interest-for-piling-btc-top-analyst-says-sentiment-shifting-2025-suddenly-looks-a-lot-less-rosy?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin, Ethereum, Dogecoin Fall After Fed Shows No Interest For Piling BTC: Top Analyst Says Sentiment Shifting — &#8216;2025 Suddenly Looks A Lot Less Rosy&#8217;</a>



On Tuesday, the company&#8217;s shares closed at $35.41, putting the value of Trump&#8217;s transferred stake at roughly $4 billion. This transfer follows Trump&#8217;s earlier promise in September&nbsp;not to sell his shares&nbsp;in the Truth Social parent&nbsp;company. At that time, he had criticized Nasdaq for routine trading halts and suggested a possible move to the NYSE.



Why It Matters: The transfer of&nbsp;Trump&#8217;s&nbsp;stake in&nbsp;Trump Media &amp; Technology Group Corp&nbsp;comes at a time when the company has seen significant growth. Earlier this year, DJT&#8217;s stock value had more than doubled, reflecting investor confidence in the company&#8217;s potential. However, Trump&#8217;s decision to transfer his shares to a revocable trust raises questions about his future involvement in the company.



In September, Trump had publicly criticized Nasdaq for its trading halts, hinting at a potential shift to the New York Stock Exchange. This move was seen as a strategic effort to align with a more stable trading environment. The recent transfer of shares to the trust could be part of a broader strategy to manage his assets while maintaining influence over the company.



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42550405/trump-inauguration-could-coincide-with-a-harrowing-dump-for-crypto-arthur-hayes-warns?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump Inauguration Could Coincide With A &#8216;Harrowing Dump&#8217; For Crypto, Arthur Hayes Warns</a></li>
</ul>



Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.



Image via Flickr

Pre-Market Outlook

DJT Stock Plummets Over 5% Following Trump's Stake Transfer: Here's More

The Federal Reserve&#8217;s key inflation measure came in below expectations for November, delivering welcome relief Friday to markets after the central bank warned earlier this week of mounting price pressures heading <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42598354/wall-street-pins-hopes-on-fridays-crucial-fed-inflation-report-yet-a-miracle-is-needed-to-shift-the-narrative">into the new year.</a>



The Personal Consumption Expenditures price index grew by 2.4% in November 2024 on a year-over-year basis, up from 2.3% in October, according to government data. The figure missed economist forecasts of 2.5%, yet it marked the second consecutive monthly increase in this key inflation measure.



On a monthly basis, the PCE index advanced 0.1%, decelerating from October's 0.2%. 



Excluding volatile components like food and energy, core PCE held steady at 2.8% year-over-year, below expectations of 2.9%. On a monthly basis, core PCE growth slowed to 0.1%, down from the prior 0.3% and below expectations of 0.2%.



In tandem with the inflation data, the report also showed that personal income rose 0.3% month-over-month in November, slowing from October's 0.5% increase and missing expectations of 0.4%. Personal spending grew by 0.4%, slightly below forecasts but in line with October's increase, signaling resilient consumer activity heading into the holiday season.



<h3 class="wp-block-heading">Another Reality Check For Markets</h3>



The unexpectedly softer November PCE reading could provide relief after days of heightened market volatility triggered by this week&#8217;s Federal Reserve meeting.



On Wednesday, the Fed signaled a slower pace of rate cuts and raised its inflation projections for 2025 and beyond, reinforcing its hawkish stance.



Policymakers now forecast headline PCE inflation to reach 2.5% next year, up from the September projection of 2.1%, and 2.1% in 2026, compared to the previous 2% estimate. Similarly, core PCE inflation is now expected to hit 2.5% in 2025, up from 2.2%, and 2.1% in 2026, revised from 2%.



Fed Chair Jerome Powell's remarks further dashed market hopes when he announced a "new phase" in monetary policy, signaling caution against easing further as interest rates approach the neutral level.



Prior to Friday's data release, money markets had priced in 65 basis points of cumulative rate cuts for next year. 



<h3 class="wp-block-heading">Dollar Falls, Equity Futures Trim Losses</h3>



<ul>
<li>The U.S. dollar index (DXY) – as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) – tumbled 0.3%. </li>



<li>Futures on major U.S. indices trimmed premarket losses, with contracts on the S&amp;P 500 down by 0.7% at 8:35 a.m. in New York. On Thursday the S&amp;P 500 – as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – closed 0.1% lower, bringing its cumulative decline since the Fed&#8217;s meeting to over 3%.</li>



<li>Gold surged by 0.6% to $2,610 per ounce. </li>



<li>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) slightly rebounded after the news to above $95,000 levels, cutting daily losses to 2%. Prior to this week&#8217;s Fed meeting, the largest cryptocurrency had reached an all-time high of $108,364. </li>
</ul>



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<li><a href="https://www.benzinga.com/24/12/42611748/us-stocks-to-open-lower-as-traders-brace-for-triple-witching-hour-analyst-says-end-of-the-year-recovery-would-not-surprise-anyone">US Stocks To Open Lower As Traders Brace For &#8216;Triple Witching&#8217; Hour: Analyst Says End Of The Year Recovery &#8216;Would Not Surprise Anyone&#8217;</a></li>
</ul>



Photo via Shutterstock.

Fed's Preferred Inflation Gauge Falls More Than Expected: Markets Breathe Sigh Of Relief

On Friday, Novo Nordisk A/S (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>) stock plunged after the company released headline results from the REDEFINE 1 Phase 3 trial in the <a href="https://www.novonordisk.com/content/nncorp/global/en/news-and-media/news-and-ir-materials/news-details.html?id=915082" target="_blank" rel="noreferrer noopener">global REDEFINE program</a>.



REDEFINE 1 is a 68-week efficacy and safety trial investigating subcutaneous CagriSema (a fixed dose combination of cagrilintide 2.4 mg and semaglutide 2.4 mg) compared to the individual components cagrilintide 2.4 mg, semaglutide 2.4 mg, and placebo, all administered once-weekly.



Also Read: <a target="_blank" href="https://www.benzinga.com/general/biotech/24/12/42467660/novo-nordisks-ozempic-label-expansion-snags-approval-from-european-drug-regulators-advisory-panel" rel="noreferrer noopener">Novo Nordisk&#8217;s Ozempic Label Expansion Snags Approval From European Drug Regulator&#8217;s Advisory Panel</a>



The <a target="_blank" href="https://www.novonordisk.com/content/nncorp/global/en/news-and-media/news-and-ir-materials/news-details.html?id=915082" rel="noreferrer noopener">trial</a> included 3,417 randomized people with obesity or overweight with one or more comorbidities and a mean baseline body weight of 106.9 kg.



The trial achieved its primary endpoint by demonstrating a statistically significant and superior weight loss with CagriSema versus placebo at week 68.



When evaluating the effects of treatment if all people adhered to treatment, people treated with CagriSema achieved a weight loss of 22.7% after 68 weeks compared to a reduction of 11.8% with cagrilintide 2.4 mg, 16.1% with semaglutide 2.4 mg and 2.3% with placebo alone.



In November, Novo Nordisk said its hybrid drug, CagriSema, aims to reduce weight by 25% without <a target="_blank" href="https://www.benzinga.com/general/biotech/24/11/41706292/as-race-to-best-miracle-obesity-drug-heats-up-ozempic-maker-novo-nordisk-tests-new-hybrid-drug-th" rel="noreferrer noopener">added side effects</a>.



In addition, 40.4% of patients who received CagriSema reached a weight loss of 25% or more after 68 weeks, compared to 6.0% with cagrilintide 2.4 mg, 16.2% with semaglutide 2.4 mg, and 0.9% with placebo.



When applying the treatment policy estimand, people treated with CagriSema achieved a weight loss of 20.4% compared to a reduction of 11.5% with cagrilintide 2.4 mg, 14.9% with semaglutide 2.4 mg and 3.0% with placebo.



In the trial, CagriSema, cagrilintide 2.4 mg and semaglutide 2.4 mg appeared to have a safe and well-tolerated profile. The most common adverse events with CagriSema were gastrointestinal, and the vast majority were mild to moderate and diminished over time, consistent with the GLP-1 receptor agonist class.



The results from the second pivotal phase 3 trial, REDEFINE 2, in adults with type 2 diabetes and either obesity or overweight are expected during the first half of 2025.



In reaction to lower-than-expected trial data, Eli Lilly And Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) stock is trading higher. Lilly&#8217;s own obesity injection containing tirzepatide demonstrated sustained average weight loss of 22.9% (15 mg dose) through the three-year treatment <a target="_blank" href="https://www.benzinga.com/24/11/41985752/eli-lillys-detailed-phase-3-trial-data-show-99-of-patients-on-popular-mounjarozepbound-remained-diabetes-free-for-even-at-three-years" rel="noreferrer noopener">period for the efficacy estimandi</a>.&nbsp;



Recently, Novo Nordisk stock came under pressure when two new studies from the University of Southern Denmark suggested that Ozempic, a diabetes medication, may increase the risk of developing a <a target="_blank" href="https://www.benzinga.com/24/12/42557565/ozempic-maker-novo-nordisks-poised-to-go-under-european-review-for-potential-increased-risk-of-rare-eye-disease" rel="noreferrer noopener">rare eye condition</a>.



Price Action: NVO stock is down 16.50% at $86.33, and LLY stock is up 8.91% at $825 during the premarket session at the last check on Friday.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/biotech/24/12/42600472/your-healthcare-costs-are-soaring-us-spending-reached-5-trillion-in-2023-with-major-increase-in-obesity-and-diabetes-drugs-hospital-services" target="_blank" rel="noreferrer noopener">Your Healthcare Costs are Soaring! US Spending Reached $5 Trillion In 2023 with Major Increase in Obesity and Diabetes Drugs, Hospital Services</a></li>
</ul>



Photo via Shutterstock

Biotech

Novo Nordisk's Hybrid Weight Loss Drug Falls Short On Expectations, Stock Plunges

U.S. stock futures declined on Friday, ahead of the &#8220;Triple Witching&#8221; hour, which is expected to see the expiry of about $6.6 trillion options, for the quarter.



This comes after the market fell on Wednesday after the Federal Reserve&#8217;s hawkish cut and ended mixed on Thursday. In Friday&#8217;s premarket, all four major indices were trading lower.



The 10-year and two-year Treasury notes yielded 4.55% and 4.28%, respectively. The probability of having no change in the interest rates for the upcoming Jan. 31, 2025 decision was at 89.3%, according <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">to</a> CME Group&#8217;s FedWatch tool.



Investors will receive another critical economic data point on Friday with the release of the November personal consumption expenditures (PCE) inflation index. This release follows other inflation indicators that suggest price increases accelerated in November.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>-1.12%</td></tr><tr><td>S&amp;P 500</td><td>-0.78%</td></tr><tr><td>Dow Jones</td><td>-0.57%</td></tr><tr><td>Russell 2000</td><td>-1.13%</td></tr></tbody></table></figure>



In premarket trading on Friday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was down 1.16% to $579.30&nbsp;and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 1.23% to $507.83, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.



Cues From The Last Session



The S&amp;P 500 ended the day essentially unchanged after giving up earlier gains. The Nasdaq 100 fell 0.5%, fluctuating between small gains and losses throughout the session.



However, Dow Jones ended marginally higher, breaking its 10-day losing streak.



Most sectors on the S&amp;P 500 closed on a negative note, with materials, real estate, and energy stocks recording the biggest losses on Thursday. However, utilities and financials stocks bucked the overall market trend, closing the session higher.



Thursday&#8217;s economic data showed a revision upward in one of the Fed&#8217;s preferred inflation measures to 2.2%.



As Fed Chair Jerome Powell has indicated that further easing would require additional progress on inflation, market participants will now focus on the final significant economic data point of the year: November&#8217;s personal consumption expenditures, due out on Friday.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-0.10%</td><td>19,372.77</td></tr><tr><td>S&amp;P 500</td><td>-0.087%</td><td>5,867.08</td></tr><tr><td>Dow Jones</td><td>0.036%</td><td>42,342.24</td></tr><tr><td>Russell 2000</td><td>-0.45%</td><td>2,221.50</td></tr></tbody></table></figure>



Insights From Analysts



The &#8220;Triple Witching&#8221; hour is a quarterly event that occurs during the final hour of trade on the third Friday of March, June, September, and December. During this period, contracts for stock index futures, stock index options, and stock options all expire at the same time.



According to the Chairman and Founder of Navellier &amp; Associates, Louis Navellier, &#8220;The timing of buying the dip is complicated by options expiration tomorrow and Christmas next week, but a recovery by the end of the year would not surprise anyone.&#8221;



He also said, &#8220;In my opinion, the stock and bond market reactions to the FOMC Statement, dot plot, and Fed Chairman Powell's press conference were grossly overdone and eviscerated all the stock market gains since the Presidential election.&#8221;



According to him, both France and Germany are in the midst of a political crisis and are "headless" until new leadership emerges. &#8220;As a result, I am expecting up to four Fed rate cuts in 2025 as collapsing interest rates in the eurozone also cause U.S. Treasury yields to decline,&#8221; he said.



However, Tom Lee, managing partner and head of research at Fundstrat Global Advisors, thinks <a href="https://www.benzinga.com/markets/equities/24/12/42608297/tom-lee-explains-why-fewer-cuts-in-2025-could-boost-the-market-urges-investors-to-buy-the-dip-amid-recent-volatility#:~:text=What%20Happened%3A%20%E2%80%9CThe%20fewer%20cuts,on%20Thursday%2C%20according%20to%20Fundstrat.&amp;text=%2C%20suffering%20its%20steepest%20one%2Dday%20decline%20since%20September%202022">fewer cuts are better for the economy</a>.



"The fewer cuts [the Fed does] in 2025, it actually is better for this bull market because it provides a lot of future ammunition to protect the economy," he said.



"I know yesterday's (Wednesday&#8217;s) pullback was really painful, but to us, the fundamentals supporting stocks are intact.&#8221;



Carson Research&#8217;s vice president and global macro strategist, Sonu Varghese called 2024 a &#8220;strong&#8221; year for U.S. stocks, even with the recent pullback.



&#8220;The fallout from the Fed meeting wiped out post-election gains across large swaths of the market, including value stocks and mid-cap and small-cap stocks, though looking back over the entire year, almost every major category is up double-digits so far, across style (value – core – growth) and capitalization (large – mid &#8211; small). For comparison the MSCI All-Cap World ex US Net Index is up just 7.2% year to date. That should tell you how strong of a year 2024 has been for US stocks, even with the recent pullback,&#8221; Varghese said in a note.



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures</a>



Upcoming Economic Data



Important data is slated to be released on Friday that will help investors to determine the future course of action.



<ul>
<li>On Friday, personal income and spending data along with core and headline PCE index data for November will be released at 8:30 a.m., ET.</li>



<li>Consumer sentiment data for December will be released at 10:00 a.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Psyence Biomedical Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PBM#NASDAQ">PBM</a>) was up 105% in premarket after it inked an IP licensing and mutual exclusivity agreement with Optimi Health Corp., a Canadian psychedelics pharmaceutical manufacturer.</li>



<li>Humacyte Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HUMA#NASDAQ">HUMA</a>) was up 52.31% in premarket after it received FDA approval for SYMVESS, a bioengineered human tissue designed as a universally implantable vascular conduit for arterial injury treatment.</li>



<li>Nike Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) was down 3.37% after issuing <a href="https://www.benzinga.com/24/12/42610441/nikes-new-ceo-says-we-lost-our-obsession-with-sport-as-he-rebukes-old-strategies-on-performance-marketing-isolation-of-wholesalers-aims-to-create-demand">lower revenue guidance</a> and additional gross margin pressure given the higher demand creation expenses.</li>



<li>FedEx Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>) was 7.33% higher after it posted stronger-than-expected results for its second quarter. The company also announced that it has decided to pursue a full separation of FedEx Freight through the capital markets, creating a new publicly traded company.</li>



<li>BlackBerry Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BB#NYSE">BB</a>) was down 5.03% as it expects fourth-quarter revenue in the range of $126 million to $135 million versus the estimates of $161.49 million.</li>



<li>Winnebago Industries Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WGO#NYSE">WGO</a>) was up 2.04% as analysts expect it to post quarterly earnings at 20 cents per share on revenue of $672.23 million before the opening bell.</li>



<li>Carnival Corporation. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>) fell 1.11% as it is expected to report quarterly earnings at 8 cents per share on revenue of $5.93 billion before the opening bell.</li>
</ul>



Commodities, Bonds And Global Equity Markets:



Crude oil futures were lower in the early New York session by 2.75% to hover around $68.66 per barrel.



The gold spot index was up by 0.42% to $2,619.24 per ounce. The Dollar Index was down 0.16% to 108.239 level.



Asian markets declined on Friday, as Hong Kong&#8217;s Hang Seng, South Korea&#8217;s Kospi, Japan&#8217;s Nikkei 225, India&#8217;s S&amp;P BSE Sensex, China&#8217;s CSI 300 and Australia&#8217;s ASX 200 index fell. Most European markets were also in the red in early trading.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/24/12/42610958/expecting-up-to-four-fed-rate-cuts-in-2025-says-this-analyst-despite-hawkish-powell-saying-it-was-close-on-the-decision-to-cut-or-not-heres-why">Hawkish Powell Aside, This Analyst Expects 4 Fed Rate Cuts In 2025: Here&#8217;s Why</a></li>
</ul>



Photo courtesy: Wikimedia

Earnings

Futures

HUMA

US Stocks To Open Lower As Traders Brace For 'Triple Witching' Hour: Analyst Says End Of The Year Recovery 'Would Not Surprise Anyone'

After the Federal Reserve chair Jerome Powell delivered <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42563299/feds-powell-shocks-markets-its-a-new-phase-were-significantly-closer-to-neutral">hawkish commentary </a>along with a 25 basis points rate cut on Wednesday, the markets have slipped for two consecutive days. Even as the Fed's December dot plot projects only two additional 25-basis-point cuts in 2025, this analyst expects up to four rate cuts in 2025.



What Happened: Chairman and Founder of Navellier &amp; Associates, Louis Navellier said, &#8220;In my opinion, the stock and bond market reactions to the FOMC Statement, dot plot, and Fed Chairman Powell's press conference were grossly overdone and eviscerated all the stock market gains since the Presidential election.&#8221;



He added that Powell&#8217;s comment that the Fed's year-end inflation forecast has "kind of fallen apart" did not inspire confidence.



Navellier thinks that the Fed could possibly follow the falling interest rates in the Eurozone as Europe&#8217;s largest economies, Germany and France, are slipping into recession.



&#8220;The European Central Bank will be cutting key interest rates 4 to 5 times in 2025 until key interest rates are at 2% to 1.75%. Most Fed watchers and the FOMC itself do not see all these global dominos falling in the eurozone as the recession in its largest economy, Germany, gets worse. The second-largest economy in the eurozone, France, is also slipping into a recession.&#8221;



See Also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42563299/feds-powell-shocks-markets-its-a-new-phase-were-significantly-closer-to-neutral">Fed&#8217;s Powell Shocks Markets After Interest Rate Cut: &#8216;It&#8217;s A New Phase&#8217;</a>



Why It Matters: According to Navellier, both France and Germany are in the midst of a political crisis and are "headless" until new leadership emerges. &#8220;As a result, I am expecting up to four Fed rate cuts in 2025 as collapsing interest rates in the eurozone also cause U.S. Treasury yields to decline,&#8221; he said.



Pointing out one of the first things that Powell said was &#8220;it was close&#8221; on the decision to cut or not. Navellier described this as &#8220;the most telling thing&#8221; about his speech as 95% of the market bet was for a cut.



However, he thinks the current pullback in the market could become a buying opportunity &#8220;if earnings continue to rise as expected.&#8221;



Price Action: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) has fallen by 3.33% over the last five trading sessions, while Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) has slipped 3.06% in the same period. On a year-to-date basis, both the ETFs are up 24% and 27.72%, respectively.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/24/12/42569883/quantum-computing-rigetti-d-wave-skyrocket-up-to-300-in-5-sessions-after-google-unveils-willow-chip-but-analysts-urge-caution-not-every-tiktok-guitarist-is-the-next-taylor-swift">Quantum Computing, Rigetti, D-Wave Skyrocket Up To 300% In 5 Sessions After Google Unveils Willow Chip, But Analysts Urge Caution: &#8216;Not Every TikTok Guitarist Is The Next Taylor Swift&#8217;</a></li>
</ul>



Photo courtesy: Federal Reserve

Hawkish Powell Aside, This Analyst Expects 4 Fed Rate Cuts In 2025: Here's Why

In a recent presentation at the Petersen Automotive Museum on Tuesday, Tesla Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) chief designer Franz von Holzhausen hinted at the possibility of introducing new vehicle forms for the <a href="https://www.benzinga.com/topic/cybercab">company&#8217;s robotaxi lineup</a>.



What Happened: Von Holzhausen's cryptic comment suggests that Tesla may expand its robotaxi offerings beyond the already known Cybercab model.



"We have other vehicles in our lineup, and future vehicles coming that will basically take multiple passengers," he said during an overview of the Cybercab at the Petersen Automotive Museum.



Von Holzhausen&#8217;s comments have fueled speculation about Tesla&#8217;s future robotaxi models, potentially addressing market needs for larger passenger groups. Tesla&#8217;s strategy involves using existing vehicles as robotaxis, but the Cybercab&#8217;s two-seat design aims to optimize costs and storage for typical ride-hailing trips.



Earlier,&nbsp;Travis Axelrod,&nbsp;Tesla&#8217;s Head of Investor Relations, informed&nbsp;Deutsche Bank that 2025 would&nbsp;be a pivotal year for the company&#8217;s product launches. This includes the&nbsp;unofficially-named &#8220;Model Q&#8221; and a&nbsp;long wheelbase Model Y tailored for the Chinese market.



Axelrod also mentioned that the latter half of 2025 would see the introduction of &#8220;other new vehicles.&#8221;



See Also: <a href="https://www.benzinga.com/markets/equities/24/12/42575664/tesla-reportedly-in-talks-with-austin">Tesla Reportedly In Talks With Austin To Bring Autonomous Vehicles To Texas Roads: Elon Musk-Led EV Giant Rises 3% In Pre-Market</a>



Why It Matters: Tesla&#8217;s ambitions for its robotaxi fleet are gaining momentum, with recent developments indicating a significant push towards autonomous vehicle deployment.



The company is reportedly in <a href="https://www.benzinga.com/markets/equities/24/12/42575664/tesla-reportedly-in-talks-with-austin">early discussions with Austin city officials</a> to test its autonomous vehicles on Texas roads by 2025. This move could bolster Tesla&#8217;s driverless vehicle ambitions if the discussions prove fruitful.



Von Holzhausen also recently <a href="https://www.benzinga.com/tech/24/12/42548657/tesla-design-chief-says-ev-giant-was-looking-to-create-future-version-of-nycs-yellow-cabs-with-gold-cybercab-it-feels-right">shared insights</a> into the aesthetic choices for the Cybercab, describing it as a &#8220;future version&#8221; of New York City&#8217;s iconic yellow cabs. The choice of gold paint reflects a modern take on the traditional yellow cab, aiming to create something more expressive and up-to-date.



Analysts at Wedbush Securities foresee <a href="https://www.benzinga.com/24/12/42455654/wedbush-securities-sees-tesla-touching-2-trillion-market-cap-by-2025-end-apple-microsoft-nvidia-to-join-4-trillion-market-cap-club-next-year-says-analyst">Tesla potentially reaching a $2 trillion market cap</a> by the end of 2025, driven by its autonomous vehicle initiatives, including the launch of the Cybercab. The firm&#8217;s bullish outlook underscores the importance of Tesla&#8217;s autonomous strategy in achieving this milestone.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="The FIRST Cybercab @ The Petersen! Presented by Tesla chief designer: Franz von Holzhausen" width="500" height="281" src="https://www.youtube.com/embed/5jqJM7-tC0k?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



Price Action: Tesla stock closed at $436.17 on Thursday, lower by 0.90%. It fell another 1.9% in after-hours trading. Year-to-date, the Tesla stock is up 75.6%, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.



The overall <a href="https://www.benzinga.com/quote/TSLA/analyst-ratings">consensus rating</a> on the Tesla stock is currently ‘Buy' with the highest price target being $515, implying an 18% upside.



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/quote/TSLA/analyst-ratings"><img loading="lazy" decoding="async" width="472" height="352" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20005530/Tesla-rating.jpg" alt="" class="wp-image-700970" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20005530/Tesla-rating.jpg 472w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/20005530/Tesla-rating-300x224.jpg 300w" sizes="(max-width: 472px) 100vw, 472px" /></a></figure>



Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link.</a>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/government/regulations/24/12/42546578/spacex-lost-ground-control-on-dragon-spacecraft-during-polaris-dawn-mission-due-to-power-outage-at-california-facility-report?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">SpaceX Lost Ground Control On Dragon Spacecraft During Polaris Dawn Mission Due To Power Outage At California Facility</a></li>
</ul>



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Photo courtesy: Tesla

TSLA

Elon Musk's Robotaxi Ambitions Are Sending TSLA Stock Soaring: Could Tesla Have More Cybercab Models Planned For 2025?

The cryptocurrency market cracked further Thursday as risk sentiment remained low following the Federal Reserve&#8217;s hawkish statements.



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:45 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>-3.30%</td><td>$97,251.29</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-6.08%</td><td>$3,425.34</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-12.28%</td><td>$0.3159</td></tr></tbody></table></figure>



What Happened: Bitcoin rallied to $102,000 in the early hours but gave up gains as the day progressed, dipping below $96,000 for the first time in over a month.



Similarly, Ethereum lifted above $3,700 only to crash below $3,400 by late afternoon. The world's second-largest cryptocurrency was down over 11% over the week.



Over $1 billion was liquidated from the cryptocurrency market in the last 24 hours, with long liquidations accounting for $860 million.&nbsp;



Bitcoin's Open Interest plunged 4.24% in the last 24 hours, alongside a drop in spot price. That said, the percentage of Binance traders taking long positions for the cryptocurrency rose sharply to 61%, against 38% betting against the asset, according to the Long/Short Ratio.



The "Greed" sentiment weakened in the market, according to the Cryptocurrency Fear &amp; Greed Index.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:45 p.m. ET)</td></tr><tr><td>Movement (MOVE)</td><td>+21.14%</td><td>$0.7626</td></tr><tr><td>Bitget Token (BGB)</td><td>+6.55%</td><td>$4.46</td></tr><tr><td>Mantle (MNT)</td><td>+6.50%</td><td>$1.17</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.33 trillion, following a contraction of 4.91% in the last 24 hours.



The Dow Jones Industrial Average snapped out of its 10-day losing streak Thursday but only just, gaining 0.04%, to close at 42,342.24. The S&amp;P 500 slipped 0.09% to end at 5,867.08, while the tech-heavy Nasdaq Composite dropped 0.10% to 19,372.77.



These moves come a day after the stock market got hammered <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42563299/feds-powell-shocks-markets-its-a-new-phase-were-significantly-closer-to-neutral">after the Federal Reserve signaled a hawkish outlook</a>, with fewer rate reductions in 2025 than expected.



The benchmark 10-year Treasury yields increased to 4.55%, the highest since May 30.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Widely followed cryptocurrency analyst and trader Ali Martinez commented on Bitcoin's latest moves, stating that if the apex cryptocurrency loses $96,000 as support, it could dip further to $90,000 and $85,000.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Keeping it simple, just based on the Fib, if <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> loses $96,000, the next point of focus becomes $90,000 and $85,000. <a href="https://t.co/yJ1Hq2PNe2">pic.twitter.com/yJ1Hq2PNe2</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1869851163061039116?ref_src=twsrc%5Etfw">December 19, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Rekt Capital, another influential analyst, stated that if Bitcoin goes below the weekly support level of around $97,800, the 5-week uptrend will be reversed and the coin will enter a corrective phase.



"If this blue weekly support region fails and so does the 5-week uptrend (orange)&#8230; then BTC will probably transition into a correction."



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"><a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> The Bearish Engulfing Candle persists And the Weekly level at $101.2k is struggling to hold as support If this blue Weekly support region fails and so does the 5-week uptrend (orange)&#8230; Then BTC will probably transition into a correction<a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> <a href="https://twitter.com/hashtag/Crypto?src=hash&amp;ref_src=twsrc%5Etfw">#Crypto</a> <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://t.co/KnIptVe958">https://t.co/KnIptVe958</a> <a href="https://t.co/7oYdQ5v2r6">pic.twitter.com/7oYdQ5v2r6</a>&mdash; Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1869808384574402864?ref_src=twsrc%5Etfw">December 19, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



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Bitcoin, Ethereum, Dogecoin Retreat Further As Crypto Liquidations Top $1 Billion: Analyst Lays Out Scenario For BTC Losing $96K Support

U.S. stock markets could benefit from fewer interest rate cuts in 2025 despite recent volatility, according to Fundstrat&#8216;s head of research Tom Lee, who sees the Federal Reserve&#8217;s hawkish stance as <a href="https://www.benzinga.com/24/12/42599089/us-stocks-edge-up-micron-suffers-worst-day-since-march-2020-bond-yields-surge-whats-driving-markets-thursday">potentially beneficial for investors</a>.



What Happened: &#8220;The fewer cuts [the Fed does] in 2025, it actually is better for this bull market because it provides a lot of future ammunition to protect the economy,&#8221; Lee said on Thursday, according to Fundstrat.



The comments followed a tumultuous period in markets, with the Dow Jones Industrial Average as tracked by the SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) struggling through its longest losing streak since 1974 and the S&amp;P 500 tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), suffering its steepest one-day <a href="https://www.benzinga.com/markets/equities/24/12/42567950/jim-cramer-warns-of-incredible-panic-as-jerome-powells-cautious-rate-cuts-send-us-stocks-into-freefall">decline since September 2022</a>.



The selloff was triggered after the Federal Reserve cut rates by 25 basis points to 4.25%-4.5% but signaled just two rate cuts for 2025, down from <a href="https://www.benzinga.com/24/12/42599089/us-stocks-edge-up-micron-suffers-worst-day-since-march-2020-bond-yields-surge-whats-driving-markets-thursday">four projected in September</a>.



The central bank&#8217;s shift rattled investors who had been counting on more aggressive rate cuts. However, recent economic data continues to show resilience, with third-quarter GDP growth revised upward to 3.1% and weekly jobless claims falling to 220,000, below expectations of 230,000.



See Also: <a href="https://www.benzinga.com/news/earnings/24/12/42606549/blackberry-beats-q3-earnings-estimates-but-soft-guidance-keeps-shares-in-check">BlackBerry Beats Q3 Earnings Estimates, But Soft Guidance Keeps Shares In Check</a>



Why It Matters: &#8220;I know yesterday&#8217;s pullback was really painful, but to us, the fundamentals supporting stocks are intact,&#8221; Lee said. He suggested that recent market declines might be driven by panicked investors selling out of momentum trades as the year ends.



The hawkish Fed outlook has particularly impacted the bond market, with 30-year Treasury yields climbing to 4.75%. Despite these headwinds, Lee maintains a bullish stance, recommending investors &#8220;buy the dip.&#8221;



Wharton Professor Emeritus Jeremy Siegel offered a similar perspective, calling the market&#8217;s reaction a &#8220;healthy&#8221; reality check after what he described as &#8220;overly optimistic&#8221; <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42570219/whartons-jeremy-siegel-calls-stock-sell-off-a-healthy-reality-check-market-was-overly-optimistic">expectations for rate cuts</a>.



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Image via Shutterstock



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Tom Lee Explains Why 'Fewer Cuts In 2025' Could Boost The Market, Urges Investors To 'Buy The Dip' Amid Recent Volatility

On Thursday, Cathie Wood-led Ark Invest made some significant trades, notably selling off Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) stock.



The Tesla Trade



The ARK Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>) reduced its holdings in Tesla Inc. by selling 14,016 shares. This move comes amidst a month where Tesla&#8217;s stock has been on a remarkable upswing, reaching new highs. The Elon Musk-led company&#8217;s stock has risen over 26% in December.



The shares were sold at a closing price of $436.17, totaling approximately $6.1 million in value. This decision follows a <a href="https://www.benzinga.com/24/12/42476448/cathie-woods-ark-invest-dumps-another-15-3-million-tesla-shares-pivots-to-this-flying-taxi-startup">previous sale</a> of Tesla shares by Ark Invest on Wednesday when the firm sold another $9.06 million worth of stock. These sales took place not long after Musk expressed optimism that the stock could touch the $690 mark.



The Palantir Trade



On the same day, Ark Invest sold Palantir stock. The firm sold 33,402 shares of the Alex Karp-led company through ARKK. The transaction was valued at $2.5 million with shares closing at $74.21 on Thursday.



This decision comes on the heels of Palantir&#8217;s recent announcement of a $400.7 million <a href="https://www.benzinga.com/24/12/42572384/palantir-strengthens-army-partnership-adds-ai-and-data-enhancements-in-400-million-deal">contract extension</a> with the U.S. Army, with a total potential ceiling of $618.9 million. The agreement aims to operationalize data across the entire Department of the Army, enabling broader integration of data and AI capabilities. Despite the company&#8217;s stock climbing 350% year-to-date and nearly 18% in December, company insiders have been <a href="https://www.benzinga.com/24/12/42538479/palantir-stock-rockets-350-ytd-but-insiders-cash-out-should-you-follow-suit">selling off shares</a>.



Other Key Trades:



<ul>
<li>ARKG and ARKK bought shares of Tempus AI Inc (TEM). ARKG sold shares of Ionis Pharmaceuticals Inc. (IONS).</li>



<li>ARKG also bought shares of Personalis Inc (PSNL).</li>
</ul>



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This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

ARKK

Cathie Wood's Thursday Moves: Dumps Buzzing Stocks Tesla And Palantir

Nike Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) reported second-quarter financial results for fiscal 2025 after the market close on Thursday. Here&#8217;s a rundown of the <a href="https://www.benzinga.com/pressreleases/24/12/b42604084/nike-inc-reports-fiscal-2025-second-quarter-results">athletic footwear and apparel company&#8217;s report</a>.



Q2 Earnings: Nike reported second-quarter revenue of $12.35 billion, beating analyst&nbsp;<a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">estimates</a>&nbsp;of $12.13 billion. The company&nbsp;reported second-quarter earnings of 78 cents per share, beating analyst estimates of 65 cents per share.



Total revenues were down 8% year-over-year. North America sales were down about 8%, Greater China sales were down about 8%, European sales fell 7% and Asia Pacific and Latin American sales were down 3%.



Nike Direct revenues were $5 billion in the quarter, down 13% year-over-year. Nike Brand revenues totaled $12 billion, down 7%, and Wholesale revenues fell 3% to $6.9 billion. 



Inventories came in at $8 billion, flat on a year-over-year basis. The company ended the quarter with $9.8 billion in cash, equivalents and short-term investments.



&#8220;After an energizing 60 days of being back with my Nike teammates, our clear priority is to return sport to the center of everything we do,&#8221; said Elliott Hill, president and CEO of Nike.



&#8220;We&#8217;re taking immediate action to reposition our business, so we can get back to driving long-term shareholder value. Our team is ready to go, and I&#8217;m confident you will see more moments of Nike being Nike again.&#8221;



Hill, a longtime Nike veteran, took over for former CEO John Donahoe in October. Executive vice president and CFO Matthew Friend noted the company is accelerating pace and reigniting brand momentum under Hill&#8217;s leadership.



Don&#8217;t Miss: <a href="https://www.benzinga.com/trading-ideas/technicals/24/12/42600598/nikes-earnings-loom-with-bearish-signals-will-the-swoosh-bounce-back">Nike&#8217;s Earnings Loom With Bearish Signals: Will The Swoosh Bounce Back?</a>



Nike noted it returned approximately $1.6 billion to shareholders during the quarter, including $557 million in dividends and $1.1 billion in share repurchases. As of Nov. 30, Nike had approximately $6.7 billion remaining under its four-year buyback approved in June 2022.



Management will further discuss the quarter on a call with investors and analysts at 5 p.m. ET.



NKE Price Action:&nbsp;<a href="http://benzinga.com/quote/nke" target="_blank" rel="noreferrer noopener">Nike shares&nbsp;</a>were down approximately 29% year-to-date heading into the print. The stock was up 8.24% in after hours, trading at $83.50 at the time of publication Thursday, according to&nbsp;<a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



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Photo: Courtesy of Nike.

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Nike Q2 Earnings: Revenue Beat, EPS Beat, Shares Jump — 'Nike Being Nike Again'

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