The U.S. stock market has generally delivered solid gains around Federal Reserve meetings in 2024, signaling investor optimism as the central bank prepares for its final policy decision of the year <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42514008/fed-poised-to-cut-interest-rates-by-0-25-this-week-heres-why-your-focus-should-shift-to-other-signals">on Wednesday.</a>



An investor adopting a short-term long strategy — buying the S&amp;P 500 index at market close the day before a Fed meeting and selling at the close the day after — would have realized a median return of 1.1% over the last seven meetings.



According to data compiled by Seasonax, this strategy has yielded positive returns six out of seven times this year.



The best-performing event came during the September FOMC Meeting, when the Federal Reserve cut interest rates by 50 basis points. In such an instance, a long position opened at 5,634 points on Sept. 17 and closed at 5,713 points two days later delivering a 1.4% gain.



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Start Date</th><th>Start S&amp;P 500 Price</th><th>End Date</th><th>End S&amp;P 500 Price</th><th>Profit %</th></tr></thead><tbody><tr><td>Jan 30, 2024</td><td>4,924.97</td><td>Feb 1, 2024</td><td>4,906.19</td><td>-0.38%</td></tr><tr><td>Mar 19, 2024</td><td>5,178.51</td><td>Mar 21, 2024</td><td>5,241.53</td><td>+1.22%</td></tr><tr><td>Apr 30, 2024</td><td>5,035.69</td><td>May 2, 2024</td><td>5,064.20</td><td>+0.57%</td></tr><tr><td>Jun 11, 2024</td><td>5,375.32</td><td>Jun 13, 2024</td><td>5,433.74</td><td>+1.09%</td></tr><tr><td>Jul 30, 2024</td><td>5,436.44</td><td>Aug 1, 2024</td><td>5,446.68</td><td>+0.19%</td></tr><tr><td>Sep 17, 2024</td><td>5,634.58</td><td>Sep 19, 2024</td><td>5,713.64</td><td>+1.40%</td></tr><tr><td>Nov 6, 2024</td><td>5,929.04</td><td>Nov 8, 2024</td><td>5,995.54</td><td>+1.12%</td></tr></tbody><tfoot><tr><td></td><td></td><td></td><td></td><td>Median: +1.1%</td></tr></tfoot></table></figure>



<h3 class="wp-block-heading">Patience Pays: Longer Holds Double Returns</h3>



While short-term strategies around Fed meetings have been profitable, holding 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>), for 15 sessions post-meeting significantly amplifies returns.



Investors using this extended strategy achieved an average profit of 3.29%, more than double the one-day gain.



Crucially, every Fed meeting this year resulted in a positive return over the 15-session period.



The data supports the notion that investors often require more time to fully digest the implications of a Fed meeting, underscoring the importance of patience and the benefits of holding onto stocks rather than succumbing to the temptation of selling in the immediate aftermath.



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Start Date</th><th>Start Price</th><th>End Date</th><th>End Price</th><th>Profit %</th></tr></thead><tbody><tr><td>Jan 30, 2024</td><td>4,924.97</td><td>Feb 22, 2024</td><td>5,087.03</td><td>+3.29%</td></tr><tr><td>Mar 19, 2024</td><td>5,178.51</td><td>Apr 11, 2024</td><td>5,199.06</td><td>+0.40%</td></tr><tr><td>Apr 30, 2024</td><td>5,035.69</td><td>May 22, 2024</td><td>5,307.01</td><td>+5.39%</td></tr><tr><td>Jun 11, 2024</td><td>5,375.32</td><td>Jul 5, 2024</td><td>5,567.19</td><td>+3.57%</td></tr><tr><td>Jul 30, 2024</td><td>5,436.44</td><td>Aug 21, 2024</td><td>5,620.85</td><td>+3.39%</td></tr><tr><td>Sep 17, 2024</td><td>5,634.58</td><td>Oct 9, 2024</td><td>5,792.04</td><td>+2.79%</td></tr><tr><td>Nov 6, 2024</td><td>5,929.04</td><td>Nov 29, 2024</td><td>6,032.38</td><td>+1.74%</td></tr></tbody><tfoot><tr><td></td><td></td><td></td><td></td><td>Median: +3.29%</td></tr></tfoot></table></figure>



<h3 class="wp-block-heading">Will December Break The Trend? The Stakes Are Higher</h3>



As the Federal Reserve prepares for its final policy meeting of 2024, all eyes are on whether markets will continue their winning streak or finally break the trend. Investors broadly anticipate a 25-basis-point rate cut, bringing the target range to 4.25%-4.5%.



Yet the true driver of market reactions will likely be the Fed&#8217;s updated macroeconomic outlook, which includes forecasts on inflation, growth, and interest rates for the next three years.



The backdrop for this meeting is notably different compared to earlier in the year. Recent economic data has shown unexpected resilience, complicating the Fed&#8217;s path forward. 



Consumer inflation rose for a second consecutive month in November, reaching 2.7% year-over-year, while producer prices accelerated to 3%, their fastest pace since February 2023. Signs of economic strength extend further: retail sales surged beyond expectations in November, while business activity in the services sector posted its strongest expansion since late 2021.



<h3 class="wp-block-heading">Powell Now Holds Market Pendulum</h3>



For Fed Chair Jerome Powell, the task will be delicate. He must strike a balance between acknowledging persistent economic momentum and reassuring markets that policymakers remain committed to a gradual path of rate cuts. 



Any signal that rate reductions could slow in 2025 may test investor optimism, particularly as Fed funds futures price only a 60% chance of another cut by March.



This makes December&#8217;s meeting a critical juncture.



If Powell&#8217;s remarks reinforce confidence in the Fed&#8217;s ability to guide a soft landing for the economy, the S&amp;P 500 could extend its streak of positive returns seen around FOMC decisions this year. On the other hand, a more cautious tone, hinting at concerns over sticky inflation or the need to pause rate cuts, could deliver a reality check to markets that have grown accustomed to steady gains.



The question is no longer just about another short-term bounce. Instead, December&#8217;s meeting may set the tone for market sentiment heading into 2025. 



Read Next:



<ul>
<li><a href="https://www.benzinga.com/news/retail-sales/24/12/42535296/stocks-slip-as-strong-november-retail-sales-raise-concerns-over-2025-fed-rate-cuts">Stocks Slip As Strong November Retail Sales Raise Concerns Over 2025 Fed Rate Cuts</a></li>
</ul>



Fed Chair Jerome Powell illustration created using artificial intelligence via Midjourney.

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Fed Meetings Made Stock Traders Richer In 2024: Could Wednesday Bring Last Big Rally?

Murder suspect Luigi Mangione was indicted Tuesday on upgraded murder charges in the death of UnitedHealthcare CEO Brian Thompson and will no longer fight extradition from<a href="https://www.benzinga.com/news/legal/24/12/42423214/luigi-mangione-fights-extradition-to-new-york-on-murder-charge-shouts-at-press-outside-courthouse"> Pennsylvania to New York.</a>



What Happened: Thompson, who was the CEO of UnitedHealth Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>)&#8217;s insurance unit UnitedHealthcare, <a href="https://www.benzinga.com/general/health-care/24/12/42316904/unitedhealthcare-ceo-brian-thompson-fatally-shot-outside-nyc-hotel">was gunned down </a>Dec. 4 outside a Manhattan building. 



As the suspect in the case, Mangione faces an upgraded charge of first-degree murder along with two counts of murder in the second degree, which includes a charge of murder in the second degree as an act of terrorism, Manhattan District Attorney Alvin Bragg announced Tuesday.



"Our work will never be able to undo the fact that a life was lost," Bragg said.



The upgraded first-degree murder charge comes in the state of New York, where a special list of elements are needed to charge a person with the crime, including the intention to commit terrorism, murder of a judge, cop or first responder or other special instances. 



The charges mean Mangione faces a potential sentence of life in prison without the possibility of parole if he is convicted, as reported by <a href="https://www.cnn.com/2024/12/17/us/luigi-mangione-ceo-shooting/index.html">CNN</a>.



The indictment is "for the brazen, targeted and premeditated shooting of Brian Thompson," Bragg said after reading off the charges.



Mangione's 11-count indictment also includes weapons and forgery charges.



The suspect's attorney Karen Friedman Agnifilo told CNN that he will not fight extradition to New York. A hearing is set for Thursday in Pennsylvania to decide on the next steps to return Mangione to New York.



New York City Police Commissioner Jessica Tisch said the indictment moves the case one step closer to getting justice for Thompson and his family. Tisch also provided comment on the growing praise Mangione is receiving as a potential hero, as <a href="https://www.nbcnews.com/news/us-news/luigi-mangione-indicted-first-degree-murder-charge-grand-jury-unitedhe-rcna184313">reported </a>by NBC News.



"This was a senseless act of violence. It was a cold and calculated crime that stole a life and put New Yorkers at risk. We don't celebrate murders, and we don't lionize the killing of anyone," Tisch said.



Read Also: <a href="https://www.benzinga.com/news/legal/24/12/42418763/unitedhealthcare-ceo-murder-suspect-chronic-pain-unabomber-fascination-isolation-details-emerge">UnitedHealthcare CEO Murder Suspect: Chronic Pain, Unabomber Fascination, Isolation Details Emerge</a>



Why It's Important: The murder case has been closely followed by residents of New York and brought worldwide attention due to the potential motive of Mangione lashing out over the alleged corporate greed of the health insurance industry.



While Mangione and his immediate family were not insured by UnitedHealthcare, the company may have been a target due to its massive size.



Mangione's arrest at a Pennsylvania McDonald's saw a rise <a href="https://www.benzinga.com/general/restaurants/24/12/42427146/pennsylvania-mcdonalds-where-unitedhealthcare-ceo-murder-suspect-arrested-gets-review-bombed-more-like-narc-donalds">in negative reviews</a> for the location, accusing the restaurant employees and patrons of being snitches. 



Public sympathy for Mangione can be found on social media. A recent Joe Rogan podcast episode<a href="https://www.benzinga.com/media/24/12/42473433/joe-rogan-on-public-sympathy-for-unitedhealthcare-ceo-murder-suspect-health-insurance-a-dirty-dirty-business"> saw the host</a> say the health insurance sector is a "dirty business."



Rogan suggested UnitedHealthcare's alleged high claim denial rate may have been a reason why the public was not showing sympathy for Thompson.



&#8220;It&#8217;s a dirty, dirty business. The business of insurance is f&#x2A;&#x2A;&#x2A;ing gross. It&#8217;s gross. Especially health care insurance,&#8221; Rogan said.



A manifesto document found on Mangione reportedly contained comments about health insurance companies focusing on profits and greed over public health.



Mangione reportedly suffered from chronic back pain, which kept him from activities like surfing and intimate relationships.



Members of Congress are&nbsp;<a href="https://www.benzinga.com/general/health-care/24/12/42450947/bipartisan-lawmakers-aim-to-break-up-health-care-giants-with-new-legislation" target="_blank" rel="noreferrer noopener">targeting the health insurance sector</a>&nbsp;and companies like UnitedHealth Group could be forced to divest portions of their business if a new bill is passed.



UNH Price Action: UnitedHealth stock was down 3% to $485.52 Tuesday versus a 52-week trading range of $436.38 to $630.73. The stock is down 10% year-to-date with shares down 18% over the last month.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/news/24/12/42445163/wack-the-ceo-at-a-convention-says-united-health-care-murder-suspect-luigi-mangione-in-papers-found-by-pa-cops">&#8216;Wack The CEO,&#8217; United Health Care Murder Suspect Luigi Mangione Says In Papers Found By Police</a></li>
</ul>



Photo via the Pennsylvania State Police.

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Legal

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Luigi Mangione Indicted On First-Degree Murder Charge In UnitedHealthcare CEO's Death: 'Senseless Act Of Violence'

President Joe Biden has endorsed a ban on Congress Trading, suggesting that members of Congress should not be able to buy and sell stocks in options while they<a href="https://www.benzinga.com/topic/congress-trading"> are in office.</a>



What Happened: Congress Trading has been a popular topic among retail investors for years with <a href="https://www.benzinga.com/markets/options/24/10/41459593/nvidia-stock-hits-all-time-highs-heres-how-much-nancy-pelosis-500-call-options-are-worth-today">the trading activity </a>of former Speaker of the House Nancy Pelosi closely followed thanks to the often winning trades made by her husband Paul Pelosi.



Investors also monitor potential conflicts of interest trades, such as Congress members <a href="https://www.benzinga.com/general/politics/24/04/38254235/congress-members-invest-in-defense-stocks-as-middle-east-tensions-mount-how-pelosi-gottheimer-he">buying war stocks</a> during increased Middle East tensions and which members of Congress are buying <a href="https://www.benzinga.com/markets/equities/24/12/42447434/democratic-congressman-bought-djt-stock-after-2024-election-months-after-saying-donald-trump-unfit-to-serve">Trump-linked stocks</a> and <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42330146/congressman-buys-meme-coins-ski-mask-dog-coin-climbs-in-value-after-disclosure-i-liked-the-coins-so-i-bought-them">meme coins.</a>



President Biden is calling for an end to the current legal practice.



"Nobody in the Congress should be able to make money in the stock market while they're in the Congress," Biden said in an interview with political advisor Faiz Shakir.



The video, which is set to be released later this week, will be published by A More Perfect Union, as <a href="https://apnews.com/article/joe-biden-congress-stock-trading-ban-dd9a17d7ea96a8f3a4705ebe1504c72d">reported </a>by the Associated Press, which was able to view the video ahead of its release.



Biden's comment comes as members of Congress are currently able to buy and sell stocks, options, and cryptocurrency as long as they properly disclose the trades within the appropriate time limit of 45 days.  



In the interview, Shakir said he admired the fact that Biden didn't get into stocks early like Google, Boeing, Microsoft, Nvidia and Amazon while he was a senator.



"I don't know how you look your constituents in the eye and know, because the job they gave you, gave you an inside track to make more money. I think we should be changing the law," Biden added.



Biden said he was able to live on a Congressional salary and not worry about becoming rich through playing the stock market previously.



The comments made in the interview mark a change in Biden's opinion on the issue. Biden previously refused to weigh in on the issue of congressional trading, saying he would "let members of leadership in Congress and members of Congress determine what the rules should be," as his previous press secretary Jen Psaki reported.



Did You Know?



<ul>
<li>Congress Is Making Huge Investments. <a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent121724">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
</ul>



Why It's Important: There have been numerous calls to vote for Congress members to vote for a ban on Congressional trading, but a vote has not happened.



Representative Ro Khanna (D-Calif.) <a href="https://www.benzinga.com/general/politics/24/05/39096827/exclusive-khanna-says-shameful-congress-members-profited-from-stocks-calls-for-trading-ban-makin">previously told Benzinga </a>that he will continue to advocate for a vote to ban the practice.



"We should have a vote on it," Khanna told Benzinga.



Khanna said that despite his continued speeches in the House advocating for a ban on stock trading, there is a "collective shrug" in Congress regarding the issue.



&#8220;It is shameful that over three years after the pandemic with the shenanigans from those senators who sold their stock after learning of the pandemic&#8221; there still hasn&#8217;t been a vote, Khanna said.



Khanna said that people were outraged at the time when several senators sold their stocks in tourism and other sectors that would be hurt, knowing that the economy could crash from the COVID-19 pandemic.



&#8220;Senators making money when the rest of the country was suffering during the pandemic.&#8221;



With Biden now advocating for the ban before the end of his presidential term, the situation will be closely monitored to see if Congress votes on the matter.



Unusual Whales helped<a href="https://www.benzinga.com/markets/penny-stocks/23/02/30768851/want-to-copy-master-trader-nancy-pelosis-investments-theres-an-etf-for-that-here-are-the-hol" target="_blank" rel="noreferrer noopener">&nbsp;launch two Congress Trading themed ETFs&nbsp;</a>in 2023 through a collaboration with Subversive. The&nbsp;Unusual Whales Subversive Democratic Trading ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/NANC#BATS">NANC</a>)&nbsp;and&nbsp;Unusual Whales Subversive Republican Trading ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/KRUZ#BATS">KRUZ</a>)&nbsp;provide investors with opportunities to invest in the same stocks as members of Congress.



Benzinga will continue to share Congressional trading activity of note. For more on Congress trades, check out Benzinga&#8217;s&nbsp;<a href="https://www.benzinga.com/gov-trades/?utm_source=BZprocontent121724" target="_blank" rel="noreferrer noopener">Government Trades page.</a>



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/general/politics/24/01/36459015/10-best-stock-traders-in-congress-in-2023-spoiler-nancy-pelosi-is-back-on-the-list">10 Best Stock Traders In Congress In 2023 (Spoiler: Nancy Pelosi Has Reentered The Chat)</a></li>
</ul>



Photo by lev radin on Shutterstock

Politics

KRUZ

NANC

Biden Backs Congressional Stock Trading Ban: 'Inside Track' To Wealth

The performance gap between the cap-weighted 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>) — and its equal-weighted sibling, the Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>), has blown out to over 4 <a href="https://www.benzinga.com/markets">percentage points in December. </a>



This marks the widest monthly gap since May 2023, reflecting how a narrow group of stocks is shouldering the market's returns in the last month of the year. 



As of Dec. 17, only 90 out of 500 stocks in the S&amp;P 500 are in positive territory month-to-date, a shockingly narrow market breadth.



Excluding Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), all of the Magnificent Seven stocks — Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Alphabet (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) — have posted gains this month.



If Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), which recently surpassed the $1 trillion market-cap threshold, is added to the mix, an equal-weighted portfolio of these eight stocks has already delivered a stunning 16% return so far in December.



That stands in stark contrast to the broader market's struggles as the equal-weighted S&amp;P 500 index fell by 3% month to date. 



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Name</th><th>Price Chg. % (MTD)</th><th>Market Cap ($)</th></tr></thead><tbody><tr><td>Broadcom Inc.</td><td>48.27</td><td>1.12 trillion</td></tr><tr><td>Tesla, Inc.</td><td>37.03</td><td>1.52 trillion</td></tr><tr><td>Alphabet Inc.</td><td>16.72</td><td>2.43 trillion</td></tr><tr><td>Amazon.com, Inc.</td><td>11.18</td><td>2.43 trillion</td></tr><tr><td>Meta Platforms, Inc.</td><td>9.15</td><td>1.58 trillion</td></tr><tr><td>Microsoft Corporation</td><td>7.25</td><td>3.38 trillion</td></tr><tr><td>Apple Inc.</td><td>6.52</td><td>3.82 trillion</td></tr><tr><td>NVIDIA Corporation</td><td>-5.94</td><td>3.18 trillion</td></tr></tbody><tfoot><tr><td>Average</td><td>16.26%</td><td></td></tr></tfoot></table></figure>



<h3 class="wp-block-heading">Weak Breadth: Bad Sign Or Hidden Opportunity?</h3>



Ryan Detrick, CMT, chief market strategist at Carson Group LLC, highlighted a notable trend. 



The S&amp;P 500 has now posted 11 consecutive days of more decliners than advancers, tying the longest streak since 1996. 



While many investors might view this as a bearish signal, historical data paints a surprisingly different picture.



"Many claim this is bearish, but is it?" Detrick stated. "Looking at the longest streaks ever actually appears to be rather bullish. Significant outperformance across the board out one year."



Here's how the S&amp;P 500 performed historically following similar stretches of negative breadth:



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Date</th><th>Days of Negative Breadth</th><th>1-Month</th><th>3-Months</th><th>6-Months</th><th>1-Year</th></tr></thead><tbody><tr><td>9/10/1991</td><td>8</td><td>-2.1%</td><td>-1.4%</td><td>6.0%</td><td>7.9%</td></tr><tr><td>6/20/1996</td><td>11</td><td>-4.3%</td><td>3.2%</td><td>10.5%</td><td>35.6%</td></tr><tr><td>12/24/2018</td><td>8</td><td>13.3%</td><td>19.3%</td><td>23.9%</td><td>37.1%</td></tr><tr><td>Average</td><td>—</td><td>3.0%</td><td>4.8%</td><td>8.6%</td><td>14.8%</td></tr><tr><td>All Years Avg</td><td>(1950–2023)</td><td>0.7%</td><td>2.2%</td><td>4.4%</td><td>9.0%</td></tr></tbody></table></figure>



Notably, the historical data shows that returns tend to improve significantly over the next year, with 87.5% of cases showing positive performance after a prolonged stretch of weak breadth.



In essence, bad breadth doesn't necessarily spell bad news. If history holds, weak market participation could signal stronger returns ahead.



Yet investors may have to deal with an increase in volatility and potential for sharp pullbacks.



Adam Turnquist, chief technical strategist at LPL Financial, took a more pessimistic view on the S&amp;P 500's 11-day streak of decliners outpacing gainers.



&#8220;The last time this occurred was on June 20, 1996 — only days before a sharp 10% drawdown over the following month that ended almost directly on support from the rising 200-dma. While this does not imply a market top or even correction is imminent, it does add to the evidence of potentially weak footing underneath this latest advance,&#8221; he stated. 



<h3 class="wp-block-heading">Growth Sectors Shine, But Broader Rebounds Possible</h3>



The performance story has become sharply sector-specific. 



Stephen Suttmeier, CFA, CMT, analyst at Bank of America, indicated that December's gains have been heavily concentrated in growth sectors, such as Discretionary, Communications Services and Technology.



"All other sectors showed a negative performance," Suttmeier said, highlighting the underperformance of the equal-weighted S&amp;P 500 ETF (RSP). Yet, he remains cautiously optimistic, suggesting of potential &#8220;rebounds into year-end for both the NYSE Composite Index (NYA) and RSP."



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42531373/financial-stocks-near-record-year-could-trump-deregulation-fuel-bigger-gains-in-2025">Financial Stocks Near Record Year: Could Trump Deregulation Fuel Bigger Gains In 2025?</a></li>
</ul>



Photo via Shutterstock.

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AAPL

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AVGO

GOOGL

MSFT

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TSLA

Market Breadth Worsens As Tech Giants Break Free From S&P 500 Reality: Is This Bullish Or Bearish For 2025?

The stock market edged lower by midday Tuesday as investors treaded cautiously ahead of the Federal Reserve&#8217;s policy <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42514008/fed-poised-to-cut-interest-rates-by-0-25-this-week-heres-why-your-focus-should-shift-to-other-signals">decision scheduled for Wednesday.</a>



Although a rate cut appeared widely priced in—with Fed Funds futures assigning a 96% probability—investors are fully focused on the Fed's forward guidance and Chair Jerome Powell&#8216;s remarks, particularly in light of recent robust economic data.



November's retail sales data showed an unexpected rebound, rising 0.7% month-over-month, surpassing expectations of 0.5%. On an annual basis, sales climbed 3.8%, the fastest pace since December 2023, driven by strong auto sales growth.



Semiconductor stocks led the downturn amid renewed geopolitical tensions following reports that China is broadening antitrust scrutiny on U.S. chipmakers&#8217; acquisitions in recent years. Last week, Beijing launched an investigation into Nvidia Corp.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) 2019 acquisition of Mellanox Technologies.



The iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) declined 1.5%, weighed down by sharp losses in major chip stocks. Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) dropped over 5%, while Marvell Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) plunged over 8%.



By midday, the major U.S. indices were in negative territory. The S&amp;P 500 slipped 0.4%, the Dow Jones Industrial Average fell 0.6%, and the Nasdaq 100 declined 0.4%.



Both the U.S. dollar and Treasury yields remained steady, reflecting cautious positioning by institutional investors.



In commodities, gold dipped 0.3%, while natural gas and oil prices fell 2% and 1%, respectively, signaling continued weakness in the energy sector.



Cryptocurrencies continued to outperform. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) climbed 1.3% to surpass $107,000, reaching a market capitalization of $2.13 trillion. The total cryptocurrency market value rose to $3.68 trillion, a new record high. 



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



<figure class="wp-block-table"><table><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day Chg %</td></tr><tr><td>S&amp;P 500</td><td>6,050.50</td><td>-0.4%</td></tr><tr><td>Nasdaq 100</td><td>22,000.37</td><td>-0.4%</td></tr><tr><td>Dow Jones</td><td>43,443.08</td><td>-0.6%</td></tr><tr><td>Russell 2000</td><td>2,345.01</td><td>-0.7%</td></tr></tbody></table></figure>



According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent121624&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>) fell 0.4% to $604.65.</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;eased 0.6% to $435.75.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 0.4% to $536.21.</li>



<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) dipped 1% to $232.10.</li>



<li>The&nbsp;Consumer Discretionary Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) outperformed, up by 0.2%; the&nbsp;Energy Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) lagged for the second straight session, down 1.3%.</li>
</ul>



<h3 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h3>



<ul>
<li>Amer Sports Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AS#NYSE">AS</a>) rallied 5.7% after UBS analysts raised the stock price target from $27 to $37. </li>



<li>Amentum Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMTM#NYSE">AMTM</a>) tumbled by over 11% in reaction to its earnings reports, with the company highlighting pessimistic guidance for 2025.</li>
</ul>



Read Now: 



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42531373/financial-stocks-near-record-year-could-trump-deregulation-fuel-bigger-gains-in-2025">Financial Stocks Near Record Year: Could Trump Deregulation Fuel Bigger Gains In 2025?</a></li>
</ul>



Photo: Shutterstock

Cryptocurrency

$BTC

AMTM

MRVL

SOXX

Stocks Slip Ahead Of Fed Meeting, Chipmakers Suffer From China's Threat, Bitcoin Spikes Above $107,000: What's Driving Markets Tuesday?

Wall Street began Tuesday&#8217;s session on a weaker note, with major indices slipping after November's robust retail sales report reignited investor concerns that the Federal Reserve might hold back interest <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42514008/fed-poised-to-cut-interest-rates-by-0-25-this-week-heres-why-your-focus-should-shift-to-other-signals">rate cuts next year. </a>



The data, which underscored resilient consumer spending heading into the holiday season, added a fresh layer of uncertainty to the Fed's future rate path ahead of Wednesday&#8217;s highly awaited December Federal Open Market Committee meeting.



Retail sales surged 0.7% last month, outperforming consensus estimates of a 0.5% increase and marking a notable acceleration from October's <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42529956/november-retail-sales-soar-to-11-month-highs-indicate-strong-holiday-season">upwardly revised 0.5% gain. </a>



On an annual basis, sales climbed 3.8%, hitting their fastest pace since December 2023. A significant portion of the strength came from auto sales, which soared 2.6% on a monthly basis and by a robust 6.5% year-over-year, highlighting consumers' willingness to make big-ticket purchases in the fourth quarter of the year.



Spending was also robust in other categories. Nonstore retailers, driven by e-commerce activity, posted a 1.8% monthly gain, reflecting the growing dominance of online shopping as the holiday season commenced. Sporting goods, hobby, and book stores registered a 0.9% uptick, showing steady demand for discretionary items.



<h3 class="wp-block-heading">Market Reaction: Pressure Builds On Equities</h3>



The stronger-than-expected data put equity markets under pressure, as investors recalibrated their expectations for the Fed's next moves. 



The S&amp;P 500 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>) – and Dow Jones Industrial Average both fell 0.7%, while the Nasdaq 100 – tracked by the Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) – slid 0.8%, weighed down by weakness in the chip sector. 



Semiconductor stocks led the downturn amid renewed geopolitical tensions after reports surfaced that China is broadening antitrust scrutiny on U.S. chipmakers&#8217; acquisitions in recent years. Last week, Beijing opened an investigation on U.S. chip giant Nvidia Corp.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) 2019 acquisition of Mellanox Technologies.



<h3 class="wp-block-heading">Investors Face Fed Uncertainty</h3>



The robust retail sales data is the latest in a series of reports—alongside <a href="https://www.benzinga.com/news/treasuries/24/12/42460477/producer-inflation-rises-more-than-expected-to-3-in-november-cast-shadow-on-further-disinflation-progress">hotter-than-expected inflation prints</a> and upbeat <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42511277/us-services-sector-booms-at-fastest-pace-since-october-2021-business-activity-leaps-to-over-two-year-highs">December Purchasing Managers&#8217; Index surveys</a>—that challenge the case for aggressive rate cuts next year.



While a 25-basis-point reduction at the Fed's policy meeting this week is widely anticipated, the central bank's outlook for 2025 remains in question.



Fed fund futures now suggest an 80% chance the Fed will hold rates steady at its January meeting, while expectations for a March rate cut have softened, with odds slipping to 58% from 60% a day earlier.



Betting-implied odds from CFTC-regulated Kalshi continue to suggest an elevated 92% probability of four cuts next year, yet financial markets now imply only three rate cuts. 



<h3 class="wp-block-heading">Top 5 S&amp;P 500 Performers</h3>



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Company</th><th>Price ($)</th><th>% Change</th></tr></thead><tbody><tr><td>SolarEdge Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SEDG#NASDAQ">SEDG</a>)</td><td>14.35</td><td>+16.57%</td></tr><tr><td>Pfizer Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>)</td><td>26.24</td><td>+3.88%</td></tr><tr><td>ON Semiconductor Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>)</td><td>68.65</td><td>+3.26%</td></tr><tr><td>Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)</td><td>475.11</td><td>+2.82%</td></tr><tr><td>Moderna Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>)</td><td>42.81</td><td>+2.37%</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">Top 5 S&amp;P 500 Losers</h3>



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Company</th><th>Price ($)</th><th>% Change</th></tr></thead><tbody><tr><td>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)</td><td>234.36</td><td>-6.29%</td></tr><tr><td>APA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>)</td><td>21.00</td><td>-4.35%</td></tr><tr><td>Constellation Energy Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>)</td><td>231.09</td><td>-3.43%</td></tr><tr><td>Humana Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUM#NYSE">HUM</a>)</td><td>252.18</td><td>-3.33%</td></tr><tr><td>NRG Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>)</td><td>91.18</td><td>-3.25%</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">Top 5 Nasdaq 100 Performers</h3>



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Company</th><th>Price ($)</th><th>% Change</th></tr></thead><tbody><tr><td>Super Micro Computer Inc. (NASDAQ: SMCI9 </td><td>34.47</td><td>+3.08%</td></tr><tr><td>Tesla Inc.</td><td>472.84</td><td>+2.33%</td></tr><tr><td>Regeneron Pharmaceuticals Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/regn#NASDAQ">REGN</a>)</td><td>740.51</td><td>+2.24%</td></tr><tr><td>ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>)</td><td>738.86</td><td>+2.22%</td></tr><tr><td>NXP Semiconductors N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NXP#NASDAQ">NXP</a>)</td><td>222.95</td><td>+2.21%</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">Top 5 Nasdaq 100 Losers</h3>



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Company</th><th>Price ($)</th><th>% Change</th></tr></thead><tbody><tr><td>Marvell Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>)</td><td>114.10</td><td>-8.52%</td></tr><tr><td>Broadcom</td><td>234.15</td><td>-6.37%</td></tr><tr><td>Nvidia</td><td>127.15</td><td>-3.65%</td></tr><tr><td>Constellation Energy</td><td>231.04</td><td>-3.45%</td></tr><tr><td>SiriusXM Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SIRI#NASDAQ">SIRI</a>)</td><td>22.02</td><td>-2.76%</td></tr></tbody></table></figure>



Read now: 



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42531373/financial-stocks-near-record-year-could-trump-deregulation-fuel-bigger-gains-in-2025">Financial Stocks Near Record Year: Could Trump Deregulation Fuel Bigger Gains In 2025?</a></li>
</ul>



Image created using photos from Shutterstock.

Retail Sales

ASML

MRNA

REGN

SEDG

SIRI

Stocks Slip As Strong November Retail Sales Raise Concerns Over 2025 Fed Rate Cuts

Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) spiked to another all-time high of $108,388 at the start of the U.S. trading session but reversed its gains in line with <a href="https://www.benzinga.com/24/12/42531982/dow-dips-over-200-points-us-retail-sales-top-estimates">broader stock market losses</a>.



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Price&nbsp;&nbsp;&nbsp;</td><td>Market Cap</td><td>24-Hour Trend</td><td>7-Day Trend</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>&nbsp;$106,171</td><td>$2.1 trillion</td><td>-0.2%&nbsp;</td><td>+8.6%&nbsp;</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>)</td><td>&nbsp;$3,933</td><td>$474 billion</td><td>-0.2%&nbsp;</td><td>+6.8%&nbsp;</td></tr><tr><td>XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>)</td><td>&nbsp;$2.58</td><td>$147.6 billion</td><td>+8.8%&nbsp;</td><td>+18.1%&nbsp;</td></tr></tbody></table></figure>



Trader Notes: Technical analyst Kevin <a href="https://x.com/Kev_Capital_TA/status/1869048181159231905">warned</a> in a post on X that USDT dominance remains at a critical support level, likely impeding prices from going higher.



As long as this support level, which also marked the local crypto top in March, does not break, the analyst urges caution.



Trader Altcoin Sherpa <a href="https://x.com/AltcoinSherpa/status/1869031574425252027">highlighted</a> the weakness in altcoins, which have been struggling to keep up with Bitcoin&#8217;s recent gains. 



Bitcoin leading the price action is, according to the trader, &#8220;a good thing,&#8221; as altcoins tend to rally after the apex crypto.



Statistics: Bitcoin dominance, the market share of Bitcoin among all cryptocurrencies, has rebounded from 54.56% on Dec. 3 to 57.8% at the time of writing. 



A higher Bitcoin dominance share is indicative of either Bitcoin leading a broader market rally or Bitcoin holding up better compared to altcoins in a market downturn.



Market News: XRP has been one of the best-performing altcoins of the day, boosted by the <a href="https://www.benzinga.com/top-stories/24/12/42531943/xrp-price-soars-12-to-268-what-is-going-on">launch of its RLUSD stablecoin</a>.



Bitcoin ETFs have seen two straight weeks of net spot ETF inflows. Monday saw another $688 million in net inflows flowing <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42526592/bitcoin-ethereum-etfs-see-688m-net-inflows-analysts-target-124000">into spot ETFs</a> as market participants hope for a rally in the final two weeks of 2024.



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42490266/bitcoin-to-180000-ethereum-over-6000-solana-to-500-vanecks-2025-crypto-predictions">Bitcoin To $180,000, Ethereum Over $6,000, Solana To $500: VanEck&#8217;s 2025 Crypto Predictions</a></li>
</ul>



Image: Shutterstock

$ETH

$XRP

Bitcoin Price Sets All-Time High Of $108,388, Then Dips To $106K: What Is Going On?

U.S. financial stocks are enjoying a banner year in 2024, with the sector posting the strongest yearly return in nearly three decades, fueled by the spectacular resilience of the American economy and soaring investor optimism for deregulation following Donald <a href="https://www.benzinga.com/topic/donald-trump">Trump</a><a href="https://www.benzinga.com/topic/donald-trump">'s November election victory.</a>



The iShares U.S. Financial ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) has skyrocketed 34% year-to-date, representing the fund's best annual performance since its launch in 2001.



Similarly, other financial-focused ETFs have seen strong gains. The Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) surged 31.7%, its strongest rally since 2013, while the Vanguard Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFH#NYSE">VFH</a>) climbed 32.4%.



<h3 class="wp-block-heading">Chart: A Year To Remember For Financial Stocks</h3>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="475" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16154716/image-134-1024x475.png" alt="" class="wp-image-694668" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16154716/image-134-1024x475.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16154716/image-134-300x139.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16154716/image-134-768x356.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16154716/image-134-1536x713.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16154716/image-134.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<h3 class="wp-block-heading">The Financial Sector&#8217;s Biggest Winners In 2024</h3>



This year has produced standout performances from a range of individual financial stocks. Below is a list of the 10 best-performing financial equities of 2024 within the IYF ETF:



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Name</td><td>Price Chg. % (YTD)</td></tr><tr><td>Robinhood Markets, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>)</td><td>242.28%</td></tr><tr><td>Interactive Brokers Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBKR#NASDAQ">IBKR</a>)</td><td>118.22%</td></tr><tr><td>Jefferies Financial Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEF#NYSE">JEF</a>)</td><td>102.81%</td></tr><tr><td>Apollo Global Management, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APO#NYSE">APO</a>)</td><td>91.31%</td></tr><tr><td>KKR &amp; Co. Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KKR#NYSE">KKR</a>)</td><td>88.71%</td></tr><tr><td>Coinbase Global, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>)</td><td>81.72%</td></tr><tr><td>Virtu Financial, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VIRT#NASDAQ">VIRT</a>)</td><td>80.90%</td></tr><tr><td>Evercore Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EVR#NYSE">EVR</a>)</td><td>74.57%</td></tr><tr><td>SoFi Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOFI#NASDAQ">SOFI</a>)</td><td>68.99%</td></tr><tr><td>Blue Owl Capital Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OWL#NYSE">OWL</a>) </td><td>66.88%</td></tr></tbody></table><figcaption class="wp-element-caption">Data as of Dec. 16, 2024</figcaption></figure>



<h3 class="wp-block-heading">Why Financial Stocks Soared In 2024</h3>



The 2024 rally in financial stocks has been driven by a potent cocktail of strong economic growth, declining interest rates, and deregulation optimism.



The U.S. economy demonstrated remarkable resilience, with economic growth accelerating from 1.6% in the first quarter to 3% in the second quarter, and maintaining a solid 2.8% in the third quarter. 



Survey data for December further underscored this momentum, showing <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42511277/us-services-sector-booms-at-fastest-pace-since-october-2021-business-activity-leaps-to-over-two-year-highs">private-sector activity expanding at its fastest pace since April 2022</a>, with particularly strong growth in the services sector—the backbone of the financial economy.



Bank of America&#8217;s global economics team recently summarized the sentiment, stating, &#8220;Pro-growth policies like deregulation of financial services and energy, as well as lower taxes, are boosting market sentiment and asset prices.&#8221;



One of the most critical tailwinds was the de-inversion of the U.S. yield curve. The Federal Reserve's decision to ease interest rates, coupled with steady economic growth and resilient inflation, flipped the gap between short- and long-term Treasury yields. This dynamic allowed banks to borrow cheaply via short-term funding and lend at higher, long-term rates—improving net interest margins and boosting profitability.



Mortgage rates, for example, remain high because they are linked to longer-dated Treasury yields, even as interest rates have declined. 



"Economic growth data has been coming in generally better than expected lately, which has helped push Treasury yields higher, while at the same time pricing out the need for an aggressive rate-cutting campaign by the Fed," LPL Financial said in a recent note.



<h3 class="wp-block-heading">What's Next for Financial Stocks In 2025?</h3>



Heading into 2025, Wall Street sees more tailwinds for the financial sector, particularly from deregulation. "We expect a broad deregulatory push benefiting energy and financial services," Bank of America said. The firm also noted that deregulation in the banking system could ease credit constraints while stabilizing the financial system, especially given the rapid rise of private lending, which remains largely unregulated.



According to Goldman Sachs analyst Richard Ramsden, large-cap banks remain optimistic about the economy. "Healthy consumer spending trends and strong corporate balance sheets have supported a constructive outlook," Ramsden said in a recent note.



However, regional banks remain cautious about loan growth, with many pointing to a potential rebound in early-to-mid 2025. While client sentiment has improved post-election, this optimism hasn't yet translated into higher lending activity.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42468190/defense-stocks-face-headwinds-as-trumps-doge-targets-spending-cuts-goldman-sachs-downgrades-general-dynamics-to-sell">Defense Stocks Face Headwinds As Trump&#8217;s DOGE Targets Spending Cuts: Goldman Sachs Downgrades General Dynamics</a></li>
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Image created using artificial intelligence via Midjourney.

Sector ETFs

COIN

HOOD

IBKR

SOFI

VIRT

Financial Stocks Near Record Year: Could Trump Deregulation Fuel Bigger Gains In 2025?

U.S. retail sales exceeded expectations in November, highlighting consumers&#8217; continued resilience in spending as <a href="https://www.benzinga.com/news/econ-s">the holiday season began.</a>



Retail and food services sales rose to $724.6 billion in November, a 0.7% increase from October, according to seasonally adjusted advance estimates released Tuesday.



The monthly growth outpaced market expectations of a 0.5% rise, based on consensus estimates from TradingEconomics.



<h3 class="wp-block-heading">Auto Sales Rocket</h3>



On a year-over-year basis, retail sales grew by a remarkable 3.8%, the highest since December 2023, up from the upwardly revised 2.9% in October.



Excluding motor vehicles and parts, retail sales advanced by 0.2% month-over-month, holding steady from October but missing expectations of 0.4%. When stripping out gasoline, motor vehicles, and parts, sales also rose by 0.2% in November, steady from October and below the expected 0.4%. 



Within spending categories, motor vehicle and parts recorded the largest monthly gain, with sales increasing 2.6% month-over-month and 6.5% year-over-year. 



Other increases were found in nonstore retailers, up 1.8% month-over-month and sporting goods, hobby, musical instrument, and book stores, up 0.9% on the month. 



On the other hand, miscellaneous store retailers registered the steepest monthly decline, with sales contracting 3.5%, followed by food services and drinking places, which saw sales fall 0.4%.



<h3 class="wp-block-heading">Market Reactions</h3>



The U.S. dollar index (DXY) which is tracked by the&nbsp;Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) strengthened by 0.2%, following the data. 



Treasury yields ticked higher, with the 10-year benchmark up by 2 basis points to 4.42%. 



Futures on major U.S. equity indices edged lower in Tuesday&#8217;s premarket trading, with S&amp;P 500 contracts down 0.4% and the tech-heavy Nasdaq 100 slipping 0.5%.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42514008/fed-poised-to-cut-interest-rates-by-0-25-this-week-heres-why-your-focus-should-shift-to-other-signals">Fed Poised To Cut Interest Rates By 0.25% This Week: Here&#8217;s Why Your Focus Should Shift To Other Signals</a></li>
</ul>



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November Retail Sales Hit 11-Month Highs, Signal Strong Holiday Demand

On Tuesday, Pfizer Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>) released its full-year 2025 financial guidance, projecting revenues between $61.0 billion and $64.0 billion compared to a <a target="_blank" href="https://www.benzinga.com/general/biotech/24/12/42515106/what-to-expect-when-pfizer-outlines-its-2025-financial-outlook-on-tuesday" rel="noreferrer noopener">consensus of $63.28 billion</a>.



For 2025, Pfizer expects revenue from COVID-19 products to remain consistent with 2024, excluding approximately $1.2 billion in one-time Paxlovid <a target="_blank" href="https://www.benzinga.com/pressreleases/24/12/b42526212/pfizer-provides-full-year-2025-guidance-and-reaffirms-full-year-2024-guidance" rel="noreferrer noopener">revenue recognized in 2024</a>.



The guidance accounts for an estimated $1 billion net unfavorable revenue impact due to changes under the Inflation Reduction Act (IRA), particularly Medicare Part D redesign.



Also Read: <a target="_blank" href="https://www.benzinga.com/24/12/42299374/pfizers-new-chief-scientific-officer-charts-strategic-rd-vision-highlights-balanced-approach-to-high-and-low-risk-investments" rel="noreferrer noopener">Pfizer&#8217;s New Chief Scientific Officer Charts R&amp;D Vision For High And Low-Risk Investments</a>



While IRA provisions like the $2,000 annual out-of-pocket cap are expected to benefit revenues, these are offset by eliminating the Coverage Gap Discount Program and adding manufacturer discounts in certain coverage phases.



The company projects operational revenue growth of flat to 5% year-over-year from the midpoint of 2024 baseline guidance, excluding non-recurring items.



On expenses, Pfizer anticipates full-year 2025 adjusted Selling, Informational, and Administrative expenses of $13.3 billion and $14.3 billion, while adjusted R&amp;D expenses are expected between $10.7 billion and $11.7 billion.



Pfizer estimates total adjusted SI&amp;A and R&amp;D expenses to fall between $24.0 billion and $26.0 billion, reflecting $4.0 billion in savings from its cost realignment program by the end of 2024 and an additional $500 million in savings expected in 2025.



For adjusted EPS, Pfizer projects $2.80 to $3.00 in 2025, reflecting anticipated operational growth of 10% to 18% year-over-year from the midpoint of 2024 baseline guidance.



The expected improvement is attributed to higher revenues, improved operating margins driven by ongoing cost management, and the non-recurrence of one-time items that boosted 2024 adjusted EPS by approximately $0.30.



These items included $1.2 billion in Paxlovid revenue and the removal of Haleon equity method income following the reduction of Pfizer&#8217;s ownership stake in the fourth quarter of 2024.



The company also reaffirmed its 2024 <a target="_blank" href="https://www.benzinga.com/general/biotech/24/10/41596761/pfizer-q3-earnings-revenue-and-profit-on-heightened-demand-for-paxlovid-expects-10-billion-in-202" rel="noreferrer noopener">full-year 2024 guidance</a>.



Dr. Albert Bourla, Pfizer Chairman and Chief Executive Officer, stated: &#8220;Pfizer is in a strong position to continue making a positive impact for patients and delivering on our financial commitments in 2025.&#8221;



He added, &#8220;We also expect to continue improving our operating margins with focused financial discipline. We&#8217;ve been successful in delivering on our goal of $4 billion in net operating expense savings through 2024 from our cost realignment program, with an additional $500 million still expected to come in 2025. Additionally, in support of our ongoing efforts to improve gross margin performance, we will work to make additional progress with our Manufacturing Optimization Program in the coming year.&#8221;



On the conference call, the company said it does not expect material U.S. policy changes regarding vaccines from the incoming administration in 2025.



Price Action: At last check on Tuesday, PFE stock was up 2.46% to $25.87 during the premarket session.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/24/12/42514620/googles-veo-2-and-imagen-3-set-new-standards-for-ai-creativity" target="_blank" rel="noreferrer noopener">Google&#8217;s Sora Rival &#8211; DeepMind Introduces New Video Generation Tool</a></li>
</ul>



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Guidance

Health Care

Movers

Trading Ideas

General

Pfizer Does Not Anticipate Material Changes To US Vaccine Policy From The Incoming Administration In 2025

Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) CEO Elon Musk on Monday expressed hope that the company&#8217;s stock will touch $690 in the future, without specifying a timeline.



What Happened: &#8220;At some point in the future, I think that will happen,&#8221; Musk wrote on X in response to an X user who said that they are now waiting for the stock to hit $690.42. 



<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">At some point in the future, I think that will happen&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1868822974213898728?ref_src=twsrc%5Etfw">December 17, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Tesla stock closed 6.14% higher at $463.02 on Monday. The stock is up 86.39% year-to-date, according to data from <a href="http://pro.benzinga.com">Benzinga Pro,</a> thanks to its rally since Donald Trump&#8216;s landslide victory in the U.S. Presidential elections.



Analyst Take: Mizuho Securities analyst Vijay Rakesh on Monday increased the price target on Tesla to $515 from $230 and upgraded the stock&#8217;s rating from &#8220;neutral&#8221; to &#8220;outperform.&#8221;



Wedbush analyst Dan Ives earlier this week also raised the price target on the EV giant&#8217;s stock from <a href="https://www.benzinga.com/24/12/42502841/wedbush-analyst-raises-teslas-price-target-to-515">$400 to $515</a>. "…we believe the Trump White House will be a ‘total game changer' for the autonomous and AI story for Tesla and Musk over the coming years," Ives said in a post on social media platform X.



Why It Matters: Many, including Ives, are hopeful that Musk's newly forged friendship with President-elect&nbsp;Donald Trump&nbsp;will enable a better environment for the deployment of autonomous vehicles while his other policies against EVs will harm smaller rival players, effectively reducing competition for Tesla.



Tesla stock has surged over 60% since the 2024 election results were announced. As per Benzinga&#8217;s analysis of technical indicators, the stock price is <a href="https://www.benzinga.com/analyst-ratings/price-target/24/12/42513306/elon-musks-tesla-nearly-5-times-more-expensive-than-industry-average-stock-surges-over-60-since-election">high and overbought</a>.



Tesla shares are trading at a price nearly 126 times over its 2025 earnings, according to <a href="https://www.benzinga.com/analyst-ratings/price-target/24/12/42513306/elon-musks-tesla-nearly-5-times-more-expensive-than-industry-average-stock-surges-over-60-since-election" target="_blank" rel="noreferrer noopener">Benzinga Pro</a> data. At the same time, the average forward price-to-earnings of its peers stand at 25.75 times, implying that Tesla is over five times more expensive than its industry's average.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="432" height="324" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/17050811/image-144.png" alt="" class="wp-image-695463" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/17050811/image-144.png 432w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/17050811/image-144-300x225.png 300w" sizes="(max-width: 432px) 100vw, 432px" /></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/24/12/42523006/new-passenger-vehicles-in-us-to-sound-warnings-if-rear-passengers-dont-fasten-seat-belts" target="_blank" rel="noreferrer noopener">New US Cars To Sound Warnings If Rear Passengers Fail To Fasten Seat Belts: ‘More We Can Do To Make Sure Everyone Buckles Up'</a></li>
</ul>



Image via Tesla

Analyst Ratings

Elon Musk Hopes TSLA Stock Will Reach $690 As Analysts Raise Price Target Despite Technical Indicators Flashing Warning Signals

U.S. stock futures declined on Tuesday in premarket hours as Wall Street awaits <a href="https://www.benzinga.com/topic/federal-reserve">Federal Reserve</a>&#8216;s final interest rate decision for the current year and its monetary policy forecasts for 2025.



On Monday, the tech-heavy <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42515044/broadcom-tesla-propel-nasdaq-100-gains-bitcoin-hits-107000-fueling-crypto-stocks-rally-whats-driving-markets-monday">Nasdaq 100 set a new record high</a> and crossed the 22,000-point milestone, whereas Dow Jones fell for eight sessions. The futures of all four major indices were trading lower.



The 10-year and two-year Treasury notes yielded 4.42% and 4.27%, respectively. The Federal Open Market Committee will begin its two-day meeting, later in the day.



See Also: <a href="https://www.benzinga.com/trading-ideas/movers/24/12/42522084/bitcoin-ethereum-dogecoin-settle-down-amid-growing-talks-of-a-strategic-btc-reserve-top-analyst-sees-prospect-of-apex-crypto-hitting-110k-this-week">Bitcoin, Ethereum, Dogecoin Settle Down Amid Growing Talks Of A Strategic BTC Reserve: Top Analyst Sees Prospect Of Apex Crypto Hitting $110K This Week</a>



It is widely expected to announce another interest rate reduction at the conclusion of their meeting on Wednesday. The probability of a further 25 basis point rate cut in December was at 96.3% versus 61.9% probability a month ago, according to <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">CME Group&#8217;s FedWatch tool</a>.



If the Fed cuts rates, it would be the third consecutive cut, bringing the federal funds rate down from its current level of 4.50% to 4.75%. Following the meeting, Chairman Jerome Powell&#8216;s remarks will be closely scrutinized by market participants.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>-0.07%</td></tr><tr><td>S&amp;P 500</td><td>-0.25%</td></tr><tr><td>Dow Jones</td><td>-0.31%</td></tr><tr><td>Russell 2000</td><td>-0.10%</td></tr></tbody></table></figure>



In premarket trading on Tuesday, the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was down 0.24% to $605.36 and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 0.087% to $537.70, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.



Cues From The Last Session



Tech stocks continued their <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42515044/broadcom-tesla-propel-nasdaq-100-gains-bitcoin-hits-107000-fueling-crypto-stocks-rally-whats-driving-markets-monday">upward trajectory</a> on Monday, with the Nasdaq 100 index surging over 1.4%. Key index components drove this rally.



Broadcom Inc. led the charge, skyrocketing over 11% after receiving favorable analyst ratings. The company&#8217;s AI-driven growth potential was further bolstered by its recent announcement of a partnership with Apple Inc. to develop a cutting-edge AI chip.



Tesla Inc also experienced significant gains, climbing more than 6%. This surge extended its post-election rally, fueled by positive analyst sentiment. Wedbush Securities highlighted Tesla&#8217;s potential as a &#8220;game-changer&#8221; in AI and autonomous driving under the Trump administration.



Other indices also saw positive momentum, with the Russell 2000 rising 0.64% and the S&amp;P 500 edging up 0.38%. However, the Dow Jones Industrial Average dipped 0.25%, primarily due to losses in the energy and healthcare sectors.



On the economic front, private-sector surveys indicated a stronger-than-expected rebound in December activity. The services sector PMI soared to 58.5, marking the highest level since October 2021. The Composite PMI also climbed to 56.6, its best reading since April 2022, as robust growth in services offset continued weakness in manufacturing.



<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>1.24%</td><td>20,173.89</td></tr><tr><td>S&amp;P 500</td><td>0.38%</td><td>6,074.08</td></tr><tr><td>Dow Jones</td><td>-0.25%</td><td>43,717.48</td></tr><tr><td>Russell 2000</td><td>0.64%</td><td>2,361.99</td></tr></tbody></table></figure>



<ul>
<li>See Also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42515044/broadcom-tesla-propel-nasdaq-100-gains-bitcoin-hits-107000-fueling-crypto-stocks-rally-whats-driving-markets-monday">Broadcom, Tesla Propel Nasdaq 100 Gains, Bitcoin Hits $107,000, Fuels Crypto Stocks Rally: What&#8217;s Driving Markets Monday?</a></li>
</ul>



Insights From Analysts



As the market continues to exhibit resilience, driven by hopes of AI-led growth and reduced regulatory hurdles, the actual economic impact of AI adoption is still some time away, said Jeremy Siegel. &#8220;This disconnect between potential and reality allows the bullish sentiment surrounding the sector to persist,&#8221; he added.



Siegel is a senior economist at WisdomTree and emeritus professor of finance at the Wharton School, University of Pennsylvania.



&#8220;A rotation into neglected areas of the market, such as value or small-cap stocks, could materialize in 2025 if regulatory reforms and easing financial conditions create a more favorable backdrop for these non-tech segments. Investors should remain vigilant as tech valuations climb further, with an eye toward rebalancing opportunities early next year,&#8221; Siegel wrote in his weekly market commentary.



The chief market strategist at Carson Group, Ryan Detrick spoke about the continued skewness in the market breadth, in an X post. He asked a rhetorical question &#8220;Many claim this (trend) is bearish, but is it?&#8221;



According to the data shared by him, the last time market breadth was in the favour of decliners for 11 days, the index rose by 35.6% over the next year.



&#8220;Looking at the longest streaks ever actually appears to be rather bullish. Significant outperformance across the board out one year,&#8221; he added.



<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">11 days in a row with more decliners than advancers on the S&amp;P 500, ties longest streak since 1990. Many claim this is bearish, but is it? Looking at the longest streaks ever actually appears to be rather bullish. Significant outperformance across the board out one year. &#x1f914; <a href="https://t.co/mgDJ0wVlYY">pic.twitter.com/mgDJ0wVlYY</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1868864558728986744?ref_src=twsrc%5Etfw">December 17, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Upcoming Economic Data



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



<ul>
<li>On Tuesday, U.S. retail sales data for November will be announced at 8:30 a.m., ET.</li>



<li>The industrial production and capacity utilization data for November will be announced at 9:15 a.m., ET.</li>



<li>The home builder confidence index data will be released for December at 10:00 a.m., ET.</li>



<li>And, lastly, the Federal Open Market Committee meeting will begin on Tuesday.</li>
</ul>



Stocks In Focus:



<ul>
<li>Sealsq Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LAES#NASDAQ">LAES</a>) rose 25.31% in premarket after it announced that institutional investors will sell 7,692,308 ordinary shares of the company at $1.30 per share in a registered direct offering, expected to close on Dec. 16.</li>
</ul>



<ul>
<li>Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) was up 2.63%, continuing its momentum from yesterday after receiving an upgrade in its price target by Wedbush Securities.</li>
</ul>



<ul>
<li>Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) was down 2.08% after CNBC&#8217;s Jim Cramer cautioned investors, saying that a &#8220;reversal&#8221; will happen and it will be a &#8220;vicious&#8221; one.</li>
</ul>



<ul>
<li>D-Wave Quantum Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QBTS#NYSE">QBTS</a>) was up 5.12% after CEO Alan Baratz highlighted it&#8217;s leadership in quantum computing, emphasizing their focus on delivering real-world value to customers through annealing quantum computing.</li>
</ul>



<ul>
<li>Quantum Computing Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QUBT#NASDAQ">QUBT</a>) was up 4.69% after it recently announced its second purchase order for its thin-film lithium niobate photonic chip foundry from the University of Texas, Austin.</li>
</ul>



<ul>
<li>Rigetti Computing Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RGTI#NASDAQ">RGTI</a>) was up 5.81% in premarket amid continued momentum in the quantum computing space. The rally across quantum names follows the announcement of Google&#8217;s quantum computing chip &#8220;Willow,&#8221; which achieves error reduction and performs computations faster than traditional supercomputers.</li>
</ul>



Commodities, Bonds And Global Equity Markets:



Crude oil futures were declining in the early New York session by 1.17% to hover around $69.88 per barrel.



The gold spot index fell by 0.54% to $2,655.61 per ounce. The Dollar Index was up 0.17% to 107.035 level.



Asian markets declined on Tuesday, including Hong Kong&#8217;s Hang Seng, Japan&#8217;s Nikkei 225, India&#8217;s S&amp;P BSE Sensex, and South Korea&#8217;s Kospi index. Australia&#8217;s ASX 200, and China&#8217;s CSI 300 index bucked the trend. Most European markets also fell except France&#8217;s CAC 40 and Euro Stoxx 50.



<ul>
<li>Read Next: <a href="https://www.benzinga.com/markets/equities/24/12/42522048/jim-cramer-warns-nvidias-vicious-and-fast-reversal-is-coming-amid-174-surge-this-year-and-china-antitrust-probe">Jim Cramer Warns Nvidia&#8217;s &#8216;Vicious&#8217; And &#8216;Fast&#8217; Reversal Is Coming Amid 174% Surge This Year And China Antitrust Probe</a></li>
</ul>



Image Via Shutterstock

Pre-Market Outlook

LAES

QBTS

QUBT

RGTI

Wall Street Set To Open Lower As Fed Rate Cut Decision, Jerome Powell's Comments Take Center Stage: Wharton's Jeremy Siegel Sees Small-Cap, Value Stock Rotation In 2025

Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) and Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) spot ETFs recorded significant inflows on Dec. 16, signaling strong institutional interest amid a bullish outlook for <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42511716/bitcoin-as-neutral-reserve-asset-could-overhaul-financial-system-says-analyst">the crypto market.</a>



What Happened: The total net inflow for Bitcoin spot ETFs reached $637 million, marking 13 consecutive days of positive inflows, according to <a href="https://sosovalue.com/assets/etf">data</a> from SoSo Value.



BlackRock's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBIT#NASDAQ">IBIT</a>) Bitcoin ETF led the day with $418 million in net inflows.



<a href="https://www.benzinga.com/money/what-is-ethereum-etf#:~:text=An%20Ethereum%20ETF%20is%20designed,owning%20the%20digital%20asset%20itself.">Ethereum spot ETFs</a> saw inflows of $51.1 million, continuing a 16-day streak, with BlackRock's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ETHA#NASDAQ">ETHA</a>) ETF contributing $30.7 million.



Experts believe this trend reflects growing confidence in digital assets. 



Speaking with Benzinga, Avinash Shekhar, co-founder and CEO of Pi42 said Bitcoin&#8217;s rise to its new all-time high this Monday of $107,700 is a significant moment for the crypto market, shaped by <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> record ETF inflows, and speculations about the formation of a <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42505162/trump-reportedly-considering-executive-order-to-establish-strategic-bitcoin-reserve">U.S. Bitcoin strategic reserve</a>.



He added that the market is further buoyed by anticipation of a <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42514008/fed-poised-to-cut-interest-rates-by-0-25-this-week-heres-why-your-focus-should-shift-to-other-signals">Federal Reserve rate cut,</a> which signals positive sentiment for risk assets.



Shekhar also pointed out historical patterns, suggesting that altcoins could follow Bitcoin's lead. 



"While Bitcoin is now leading with strong fundamentals, historical trends indicate that altcoins, such as Ethereum and Solana, will likely follow suit," he said. 



Ethereum's rally past the $4,000 mark highlights renewed institutional interest, driven by on-chain activity and its dominance in decentralized finance (DeFi).



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42514820/ftx-reorganization-plan-set-for-january-3-distributions-to-commence-within-60-days">FTX Reorganization Plan Set For January 3, Distributions To Commence Within 60 Days</a>



Why It Matters: Technical analysis from Fairlead Strategies supports the bullish market outlook.



Bitcoin has exhibited short-term, intermediate-term and long-term bullish momentum, with a measured move projection targeting $124,000 in the intermediate term.



In a note sent to Benzinga, analysts observed that Bitcoin has broken out of its consolidation phase, signaling strong upward momentum through year-end.



Ethereum also remains bullish across all time frames, according to Fairlead Strategies. 



Ether has pushed back above key resistance near $4,000, and a sustained breakout could target $4,866 in the intermediate term. 



Indicators like the MACD and stochastics suggest that Ethereum's upward momentum is likely to continue, strengthening the case for long-term upside.



The broader market momentum has sparked discussions of an upcoming altcoin season, with several altcoins, including Polkadot (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/dot/usd">DOT</a>), and Ripple (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>), showing bullish <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42513240/xrp-price-up-4-as-ripple-announced-rlusd-launch-for-tuesday">relative strength compared to Bitcoin.</a> 



Meanwhile, analysts noted that assets like Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>) and Stellar (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xlm/usd">XLM</a>) may be losing their upside leadership.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42512673/ai-cryptocurrencies-surge-208-to-61-5-billion-market-cap-in-2024-these-were-the-top-performers">AI Cryptocurrencies Surge 208% To $61.5 Billion Market Cap In 2024: These Were The Top Performers</a></li>
</ul>



Image: Shutterstock

$DOGE

$DOT

$XLM

ETHA

IBIT

Bitcoin, Ethereum ETFs See $688M Net Inflows, Analysts Target $124,000

Leading cryptocurrencies simmered down Monday after a smashing rally even as speculations around a U.S. strategic Bitcoin reserve gathered steam.



<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>-0.10%</td><td>$106,072.58</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>-0.69%</td><td>$3,966.41</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>-1.74%</td><td>$0.4009</td></tr></tbody></table></figure>



What Happened: The world&#8217;s largest cryptocurrency broke beyond $107,000 for the first time this afternoon before profit-taking brought it back to $105,000, with a modest increase to $106,000 by evening.



The sentiment was upbeat following reports that President-elect Donald Trump <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42505162/trump-reportedly-considering-executive-order-to-establish-strategic-bitcoin-reserve">might pass an executive order</a> to create a national Bitcoin stockpile.



Bitcoin was already up 9.11% in December, higher than the historical <a href="https://www.coinglass.com/today">average </a>of 5.75%, per Coinglass data.



A similar pattern followed for Ethereum, which failed to decisively break over $4,000 and fell to the upper $3,900 range.



In the past 24 hours, 119,098 traders were liquidated, with the total liquidations at $371.44 million. Longs accounted for 60% of the liquidations.



Over 61% of traders on Binance with open Bitcoin futures positions were short, as per the Long/Short Ratio, suggesting expectations of a pullback.



A rally to $110,000 would wipe out over $500 million worth of short positions, data showed.&nbsp;



The bearish positioning could be due to the "Extreme Greed" sentiment in the market, per 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 7:30 p.m. ET)</td></tr><tr><td>Bitget Token (BGB)</td><td>+10.80%</td><td>$3.44</td></tr><tr><td>Virtuals Protocol (VIRTUAL)</td><td>+10.07%</td><td>$2.98</td></tr><tr><td>THORChain (RUNE)</td><td>+7.63%</td><td>$6.95</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.71 trillion, following a marginal increase of 0.11% over the last 24 hours.



Stocks were a mixed bag on Monday. The Dow Jones Industrial Average fell for the eighth consecutive day, dropping 110.58 points, or 0.25%, to close at 43,717.48. The S&amp;P 500 rose 0.38% to 6,074.08, while the Nasdaq Composite surged 1.24% to close at a record high of 20,173.89.



The tech surge was powered by the "Mag 7" stocks, as Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) notched their all-time highs during the session.



The rally came just ahead of the Federal Open Market Committee's two-day meeting to decide on the <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42514008/fed-poised-to-cut-interest-rates-by-0-25-this-week-heres-why-your-focus-should-shift-to-other-signals">benchmark interest rates</a>. Market participants have priced in a 95% chance of a 25 basis point cut from the current target range of 450-475, according to the CME FedWatch tool.



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



Analyst Notes: Well-known cryptocurrency analyst Ali Martinez sent a cautionary note to investors amid Bitcoin's upsurge.



"I'm holding tight to my HODL bag, but my trading account is 30% cash as market sentiment around Bitcoin hits &#8216;extreme greed&#8217;—a cautionary red flag," the analyst remarked.&nbsp;



<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">I'm holding tight to my HODL bag, but my trading account is 30% cash as market sentiment around <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> hits &#39;extreme greed&#39;—a cautionary red flag. Some altcoins are retracing and triggering my buy orders, but I'm aiming to keep at least 20% cash on hand for flexibility. <a href="https://t.co/915IUEqnC4">pic.twitter.com/915IUEqnC4</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1868654253742620723?ref_src=twsrc%5Etfw">December 16, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Another widely followed analyst, Michaël van de Poppe, foresaw a "ton of volatility" in the market due to the upcoming Fed meeting.



"I won&#8217;t be surprised we&#8217;ll see $110,000 and $95,000 in the same week," Van de Poppe made his predictions.



<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">New all-time high for <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> and a liquidity sweep for <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a>. FED Meeting around the corner, which is likely going to bring a ton of volatility into the markets. I won&#39;t be surprised we&#39;ll see $110K and $95K in the same week.&mdash; Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1868737314366816596?ref_src=twsrc%5Etfw">December 16, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Image via Shutterstock



Read Next:    



<ul>
<li><a href="https://www.benzinga.com/personal-finance/financial-advisors/24/12/42517262/most-crypto-foward-ria-slams-bitcoin-forecasts-from-michael-saylor-others-disvalues-it-to-me">&#8216;Most Crypto-Foward&#8217; RIA Slams Bitcoin Forecasts From Michael Saylor, Others: &#8216;Disvalues It To Me&#8217;</a></li>
</ul>

Bitcoin, Ethereum, Dogecoin Settle Down Amid Growing Talks Of A Strategic BTC Reserve: Top Analyst Sees Prospect Of Apex Crypto Hitting $110K This Week

A New York judge has confirmed the guilty verdict in the hush money case involving President-elect Donald Trump, despite ongoing discussions about presidential immunity.



What Happened: Judge Juan Merchan endorsed the jury&#8217;s decision on Thursday, marking Trump as a felon. This ruling follows Trump&#8217;s recent electoral triumph over Vice President Kamala Harris. The judge has not yet made a decision on Trump&#8217;s request to dismiss the case entirely, given his president-elect status, <a href="https://thehill.com/regulation/court-battles/5043247-trump-hush-money-conviction-uphold/">reported</a> The Hill.



Trump&#8217;s legal team maintained that the evidence presented during his seven-week trial was shielded by the Supreme Court&#8217;s presidential immunity doctrine. This doctrine asserts that former presidents have total&nbsp;immunity from criminal prosecution for&nbsp;exercising core constitutional powers and&nbsp;presumptive immunity for other official&nbsp;acts.



Manhattan District Attorney&nbsp;Alvin Bragg&nbsp;refuted these claims, stating that no evidence presented to the jury was protected. He further contended that&nbsp;even if it was, it&nbsp;was inconsequential compared to the &#8220;overwhelming evidence of defendant&#8217;s guilt.&#8221;



Trump was found guilty on 34 counts of falsifying business records related to a $130,000 hush money payment to adult film actress Stormy Daniels before the 2016 presidential election. Prosecutors portrayed this as an attempt to unlawfully influence the election&#8217;s outcome.



The judge&#8217;s decision on whether to halt the proceedings during Trump&#8217;s term is still pending. Meanwhile, Trump&#8217;s other criminal proceedings have not been as successful following his presidential win.



See Also: <a href="https://www.benzinga.com/politics/24/12/42511472/trump-hits-7-year-high-in-favorability-ratings-how-republicans-democrats-men-and-women-view-president-elect?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump Hits 7-Year High In Favorability Ratings: How Republicans, Democrats, Men And Women View President-Elect</a>



Why It Matters: The Supreme Court had <a href="https://www.benzinga.com/general/politics/24/07/39577351/trump-granted-partial-immunity-by-supreme-court-ruling-says-the-president-is-not-above-the-law-d">previously ruled</a> that Trump and former presidents are entitled to immunity for acts within their Constitutional authority while in office, but not unofficial acts.



Trump&#8217;s <a href="https://www.benzinga.com/news/24/09/40699789/judge-rejects-trumps-attempt-to-move-hush-money-trial-to-federal-court-citing-lack-of-good-cause">attempt to move</a> his hush money criminal case to federal court was denied due to a lack of &#8220;good cause&#8221;, according to a previous report. The <a href="https://www.benzinga.com/general/politics/24/09/40754802/trump-hush-money-sentencing-will-now-take-place-after-2024-election-to-avoid-any-appearance-to-a">sentencing</a> for Trump&#8217;s hush money trial was postponed until after the 2024 presidential election to avoid any potential influence on the election. 



Image via Shutterstock



Did You Know?



<ul>
<li>Congress Is Making Huge Investments. <a href="https://www.benzinga.com/gov-trades">Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool</a></li>
</ul>



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>

Trump's Hush Money Conviction Upheld Amid Presidential Immunity Controversy — Alvin Bragg Says 'Overwhelming' Evidence Of Guilt

Jim Cramer cautioned investors about Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) on Monday, predicting a potential market correction for the semiconductor giant that has seen its value surge 174% this year.



What Happened: &#8220;Still no crescendo moment in Nvidia. It will happen, just not yet&#8230;.the reversal will be vicious though&#8230;.and fast,&#8221; CNBC&#8217;s Cramer wrote on X, formerly Twitter, as the stock declined 1.68% to close at $132.00.



<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">Still no crescendo moment in Nvidia. It will happen, just not yet&#8230;.the reversal will be vicious though&#8230;.and fast&mdash; Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1868721912303829094?ref_src=twsrc%5Etfw">December 16, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The warning comes as Nvidia faces heightened scrutiny in China, where authorities launched an antitrust investigation last week into the company&#8217;s 2020 acquisition of Mellanox Technologies. 



The probe examines <a href="https://www.benzinga.com/news/legal/24/12/42404352/nvidia-china-antitrust-probe-may-remain-unsolved-in-near-term-says-top-analyst-investors-should-be-prepared-for-increased-scrutiny">potential anti-competitive practices</a>, including whether Nvidia limits competition by bundling its AI chips with Mellanox&#8217;s NVLink technology.



See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42519371/broadcom-mounts-strongest-2-day-rally-since-ipo-leveraged-etf-nearly-doubles-in-2-sessions">Broadcom Mounts Strongest 2-Day Rally Since IPO: Leveraged ETF Nearly Doubles In 2 Sessions</a>



Why It Matters: TF Securities analyst Ming-Chi Kuo expects the investigation to remain unresolved in the near term, drawing parallels to Qualcomm Inc.&#8216;s 15-month <a href="https://www.benzinga.com/news/legal/24/12/42404352/nvidia-china-antitrust-probe-may-remain-unsolved-in-near-term-says-top-analyst-investors-should-be-prepared-for-increased-scrutiny">antitrust case in China</a>. 



While China represents only 5% of Nvidia&#8217;s data center revenue, Kuo advised investors to prepare for increased regulatory scrutiny of Nvidia&#8217;s practices, including its CUDA platform.



The investigation emerges as Nvidia maintains its dominance in the AI chip market, recently reporting third-quarter revenue of $35.1 billion, a 94% year-over-year increase. With a market capitalization of $3.21 trillion, Nvidia stands as one of the world&#8217;s most valuable companies, trading at a price-to-earnings ratio of 53.



Wall Street maintains a bullish outlook, with 40 analysts setting an average price target of $170.56. Rosenblatt Securities leads with the highest target of $220, while New Street Research projects a low of $120, according to <a href="https://www.benzinga.com/quote/NVDA/analyst-ratings">data from Benzinga Pro</a>.



<figure class="wp-block-image aligncenter size-large is-resized"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/16202324/Screenshot-2024-12-17-at-6.52.32%E2%80%AFAM-1024x374.png" alt="" class="wp-image-694905" style="width:808px;height:auto"/></figure>



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42516901/bitcoin-hits-new-all-time-above-107000-ethereum-xrp-dogecoin-follow-higher-as-traders-target-115000-and-more">Bitcoin Hits New All-Time High Above $107,000, Ethereum, XRP, Dogecoin Make Gains As Traders Target $115,000 And More</a></li>
</ul>



Image Via Shutterstock 



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

Jim Cramer Warns Nvidia's 'Vicious' And 'Fast' Reversal Is Coming Amid 174% Surge This Year And China Antitrust Probe

Broadcom Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) stock price soared 38% over two sessions — its strongest two-day rally since <a href="https://www.benzinga.com/money/what-does-ipo-mean">going public in 2009</a>.



A blowout earnings report, bullish analyst updates, and promising artificial intelligence (AI) developments vaulted the semiconductor company into the elite <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42488220/broadcom-hits-1-trillion-milestone-the-next-magnificent-tech-giant">trillion-dollar market-cap club.</a>



The impressive surge began on Friday, following <a href="https://www.benzinga.com/24/12/42480891/broadcom-reports-four-fold-increase-in-ai-chips-revenue-expects-continued-momentum-boasts-of-cost-reduction-in-vmware-after-acquisition-heres-what-happened">Broadcom&#8217;s latest earnings announcement</a>, with shares climbing 24.4% in a single day. The momentum continued into Monday, where the stock advanced another 11%, pushing Broadcom&#8217;s market cap from $850 billion to $1.17 trillion in just 48 hours. 



This achievement places the company alongside tech giants such as Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>), NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Amazon Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>).



<h3 class="wp-block-heading">Earnings and AI Tailwinds Fuel Optimism</h3>



Broadcom released earnings after the market closed last Thursday. Investors felt encouraged by the company's robust revenue growth due to surging demand for AI-related chips.



The semiconductor manufacturer also revealed its ongoing collaboration with Apple to develop a custom AI chip, underscoring its expanding role in enabling next-generation AI technology.



Adding to the bullish sentiment, Goldman Sachs analyst Toshiya Hari reiterated on Monday a "Buy" rating for Broadcom and raised the stock's 12-month price target from $190 to $240, labeling the company as a "key enabler of generative AI."



<h3 class="wp-block-heading">Leveraged ETF Gains: Direxion AVL Nearly Doubles</h3>



Broadcom&#8217;s stock surge also had a dramatic impact on the Direxion Daily Broadcom Bull 2X Shares ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVL#NASDAQ">AVL</a>), which offers leveraged exposure to the company's daily stock performance.



In just two sessions, the ETF skyrocketed 84%, reflecting Broadcom&#8217;s remarkable gains. 



The leveraged ETF&#8217;s performance highlights the outsized potential returns — and risks — of these high-magnitude investment vehicles during periods of strong market momentum.



<h3 class="wp-block-heading">Catch Up On Benzinga's Latest Broadcom Updates:</h3>



<ul>
<li><a href="https://www.benzinga.com/insights/options/24/12/42516743/broadcoms-options-a-look-at-what-the-big-money-is-thinking">Broadcom&#8217;s Options: A Look at What the Big Money is Thinking</a></li>



<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42515044/broadcom-tesla-propel-nasdaq-100-gains-bitcoin-hits-107000-fueling-crypto-stocks-rally-whats-driving-markets-monday">Broadcom, Tesla Propel Nasdaq 100 Gains, Bitcoin Hits $107,000, Fuels Crypto Stocks Rally: What&#8217;s Driving Markets Monday?</a></li>



<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42489281/broadcoms-ai-chip-leadership-puts-pressure-on-nvidia-and-marvell-analysts-say">Broadcom&#8217;s AI Chip Leadership Puts Pressure on Nvidia and Marvell, Analysts Say</a></li>



<li><a href="https://www.benzinga.com/24/12/42487128/apples-2025-chip-transition-targets-new-wireless-edge-broadcom-to-retain-key-role">Apple&#8217;s 2025 Chip Transition Targets New Wireless Edge, Broadcom To Retain Key Role</a></li>
</ul>



Image: Shutterstock

Specialty ETFs

GOOG

Broadcom Mounts Strongest 2-Day Rally Since IPO: Leveraged ETF Nearly Doubles In 2 Sessions

Shares of CVS Health Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>),&nbsp;Cigna Group&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CI#NYSE">CI</a>) and&nbsp;UnitedHealth Group Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) are falling Monday afternoon after President-elect Donald Trump said he plans to target Pharmacy-benefit managers (PBMs) <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42496937/analyst-bitcoins-potential-surge-to-800000-in-2025-tied-to-trumps-policies-says-this-analyst">during his administration</a>.



What Happened: According to a Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-12-16/trump-middleman-remark-sinks-cvs-unitedhealth-cigna-shares?srnd=homepage-americas&amp;sref=TBDibEcD">report</a>, Trump on Monday sent shares of PBMs lower when he said he plans to &#8220;knock out&#8221; PBMs, or so-called drug middlemen, from the industry.



CVS Health&#8217;s Caremark,&nbsp;Cigna&#8217;s Express Scripts and&nbsp;UnitedHealth&#8217;s OptumRx are the three largest PBMs. The companies have faced repeated criticism for driving up the prices of drugs.



"We have a thing called the middleman," Trump reportedly told reporters on Monday.



"You know the middleman, right? The horrible middleman that makes more money frankly than the drug companies, and they don't do anything except they're a middleman," he said. "We're going to knock out the middleman."



The news comes after Sen.&nbsp;Elizabeth Warren&nbsp;(D.-Mass.) and&nbsp;Sen. Josh Hawley&nbsp;(R.-Mo.) unveiled a new bipartisan Senate bill last week that would require the companies that own PBMs to divest those businesses within three years.



&#8220;PBMs have manipulated the market to enrich themselves — hiking up drug costs, cheating employers, and driving small pharmacies out of business,&#8221; Warren said.



See Also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42515044/broadcom-tesla-propel-nasdaq-100-gains-bitcoin-hits-107000-fueling-crypto-stocks-rally-whats-driving-markets-monday">Broadcom, Tesla Propel Nasdaq 100 Gains, Bitcoin Hits $107,000, Fuels Crypto Stocks Rally: What&#8217;s Driving Markets Monday?</a>



The proposed legislation is not expected to gain traction in Congress until next year, but comments from Trump on Monday suggest the problems with the drug industry could be addressed sooner rather than later.



The role of PBMs in the healthcare industry has been a heightened focus in recent weeks following the murder&nbsp;of&nbsp;UnitedHealthcare&nbsp;CEO&nbsp;Brian Thompson. <a href="https://www.benzinga.com/24/12/42365853/unitedhealthcare-faces-tough-questions-following-insurance-business-ceos-tragic-death" target="_blank" rel="noreferrer noopener">Several dissatisfied patients</a>&nbsp;have expressed dissatisfaction with PBMs since. Luigi Mangione&nbsp;<a href="https://www.benzinga.com/news/legal/24/12/42423214/luigi-mangione-fights-extradition-to-new-york-on-murder-charge-shouts-at-press-outside-courthouse" target="_blank" rel="noreferrer noopener">has been charged</a>&nbsp;with killing Thompson.



CVS, CI, UNH Price Action: At publication time, CVS shares were down 5.61% at $46.60, Cigna Group shares were down 3.05% at $272.76 and UnitedHealth shares were down 4.22% at $498.50, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Photo: Wikimedia Commons.

CVS, Cigna, UnitedHealth Shares Slide As Trump Targets Drug 'Middleman'

Bitcoin hit a new all-time high of $107,822 according to Coingecko data on Monday, as bullish hopes are fueled by President-elect Donald Trump reportedly contemplating an executive order to <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42505162/trump-reportedly-considering-executive-order-to-establish-strategic-bitcoin-reserve">establish a Strategic Bitcoin Reserve</a>.



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Price&nbsp;&nbsp;&nbsp;</td><td>Gains +/-</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td> $106,240.24</td><td>+3%</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>)</td><td> $4,052.99</td><td>+4%</td></tr><tr><td>Solana (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/sol/usd">SOL</a>)</td><td> $217.53</td><td>-1.5%</td></tr><tr><td>XRP (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/xrp/usd">XRP</a>)</td><td> $2.48</td><td>&nbsp;+2.8%</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)</td><td> $0.4049</td><td>+0.8%</td></tr><tr><td>Shiba Inu (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/shib/usd">SHIB</a>)</td><td> $0.00002744</td><td>-0.7%</td></tr></tbody></table></figure>



Notable Statistics:



<ul>
<li>IntoTheBlock data shows large transaction volume increasing by 2.9% and daily active addresses falling by 0.4%. Transactions greater than $100,000 remained relatively flat. Exchanges netflows are up by 255.2%.</li>



<li>Coinglass data reports 132,609 traders were liquidated in the past 24 hours for $492.98 million.</li>
</ul>



Notable Developments:



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42509614/microstrategy-expands-bitcoin-holdings-by-15350-btc-worth-15-billion-after-joining-nasdaq-100">MicroStrategy Expands Bitcoin Holdings By 15,350 BTC Worth $1.5 Billion After Joining Nasdaq 100</a></li>



<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42515773/ethereum-price-soars-past-4000-what-is-going-on-with-eth">Ethereum Price Soars Past $4,000: What Is Going On With ETH?</a></li>



<li><a href="https://www.benzinga.com/trading-ideas/movers/24/12/42500884/trump-backed-world-liberty-financials-purchases-trigger-strong-rally-in-these-defi-tokens">Trump-Backed World Liberty Financial&#8217;s Purchases Trigger Strong Rally In These DeFi Tokens</a></li>



<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42507864/bitcoin-etfs-surge-as-king-crypto-hits-106000">Bitcoin ETFs Surge As King Crypto Hits $106,000</a></li>
</ul>



Top Gainers:



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Price&nbsp;&nbsp;&nbsp;</td><td>Gains +/-</td></tr><tr><td>Virtuals Protocol (CRYPTO: VIRTUAL)</td><td>&nbsp;$3.09</td><td>+17.6%</td></tr><tr><td>Bitget Token (CRYPTO: BGB)</td><td>&nbsp;$3.44</td><td>+13.2%</td></tr><tr><td>Ondo (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">ONDO</a>)</td><td>&nbsp;$2.06</td><td>+10.9%</td></tr></tbody></table></figure>



Trader Notes: Crypto Jelle highlights that Bitcoin is following the price action from Q4 in 2023. 



He predicts Bitcoin could hit $115,000 before settling into a new range if the pattern persists.



<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/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> is still following the Q4-2023 fractal to the tee &#x1f440; Should push to ~115k before a new range is established, if this keeps playing out the same &#x1f91e;&#x1f3fb; <a href="https://t.co/D8nsc5AbpA">pic.twitter.com/D8nsc5AbpA</a>&mdash; Jelle (@CryptoJelleNL) <a href="https://twitter.com/CryptoJelleNL/status/1868723413306819056?ref_src=twsrc%5Etfw">December 16, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Stockmoney Lizards acknowledges Bitcoin&#8217;s current all-time high but argues, &#8220;This is not the top.&#8221; Citing the Satoshimeter at just 9, he <a href="https://x.com/StockmoneyL/status/1868745911842881844">believes </a>significant upside potential remains. Justin Bennett envisions the total cryptocurrency market capitalization climbing to $4.2–$4.3 trillion by year-end. 



He <a href="https://x.com/JustinBennettFX/status/1868723310814756894">forecasts</a> Bitcoin to surge to $120,000–$125,000, with Ethereum surpassing $4,800. Bennett also warns that such highs might set the stage for a correction in early 2025.



Gert van Lagen, a technical analyst, observes that Bitcoin&#8217;s current trajectory aligns with expectations, surpassing the gravity of its re-accumulation pattern. 



With an estimated 2.5 months before a potential recession, he predicts Bitcoin could aim for $200,000 soon.



<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/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> [1W] &#8211; Bitcoin is blowing off as expected with Long-term holders reaching Euphoria. The gravity of the Re-accumulation pattern has proven to be transcended. With an estimated 2.5 months before a recession begins to take hold, <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> is on track to surpass $200k soon. <a href="https://t.co/qMGFvnWxbU">pic.twitter.com/qMGFvnWxbU</a>&mdash; Gert van Lagen (@GertvanLagen) <a href="https://twitter.com/GertvanLagen/status/1868736052204388594?ref_src=twsrc%5Etfw">December 16, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42507640/bitcoin-taps-106000-consolidates-at-104000-why-is-btc-going-up">Bitcoin Taps $106,000, Consolidates At $104,000: Why Is BTC Going Up?</a></li>
</ul>



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Bitcoin Hits New All-Time High Above $107,000, Ethereum, XRP, Dogecoin Make Gains As Traders Target $115,000 And More

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