Despite a week of market chaos sparked by the Federal Reserve's hawkish stance, Bank of America clients leaned into risk, driving massive inflows into equities <a href="https://www.benzinga.com/etfs">and exchange traded funds.</a>



Data released Tuesday shows that BofA clients poured nearly $10 billion into U.S. assets — the second-largest inflow on record since 2008 and the biggest since January 2017.



Jill Carey Hall, a Bank of America analyst, highlighted a streak of seven consecutive weeks of inflows and said that, as in the previous five weeks, clients favored both single stocks and ETFs, with larger inflows directed toward single stocks.



The four-week moving average of inflows rose to $6.36 billion, the highest on record.



This appetite for risk came even as the S&amp;P 500, as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), tumbled 2% for the week, with Wednesday volatility spiking to its highest level since 2018.



While Fed Chair Jerome Powell&#8216;s <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42628985/traders-fight-the-grinch-to-save-the-santa-rally-10-sp-500-stocks-poised-for-a-year-end-surge">hawkish rhetoric rattled markets</a>, the flows story underscores a crucial trend: investors remain willing to aggressively buy the dip.



<h3 class="wp-block-heading">Institutional Buying Surges, Hedge Funds Sell</h3>



A closer look at the data revealed divergent behaviors across investor groups. 



Institutional clients, often considered market bellwethers, were net buyers for the third consecutive week, driving the largest rolling four-week inflows in nine months. 



Bank of America analysts highlighted that this trend often follows October's tax-loss selling season for mutual funds. Retail investors also joined the buying spree, marking their second consecutive week of inflows. 



In contrast, hedge funds remained sellers for a second straight week. 



Private clients, traditionally heavy sellers in December due to tax-loss harvesting, were less aggressive this year, with their single-stock selling activity "slightly less so than in the average December," according to Hall.



Notably, while private clients leaned into ETFs, corporations continued their stock buybacks at a pace that is on track to set a record high for the year when measured as a percentage of the S&amp;P 500's market cap. 



<h3 class="wp-block-heading">Tech, Industrials Shine, Health Care Suffers</h3>



Breaking down the flows by sectors, tech stocks emerged as the strongest performers, netting $4.3 billion in inflows. 



Industrial stocks followed with their largest inflows since February 2022, while Consumer Staples also saw robust buying.



Conversely, Health Care and Consumer Discretionary stocks led the outflows, with Health Care seeing net selling in four of the last five weeks. 



ETF flows painted a similar picture, with tech and industrial ETFs dominating inflows while Financials and Real Estate experienced the most significant outflows.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/24/12/42658817/5-semiconductor-stocks-wall-street-analysts-predict-could-soar-in-2025">5 Semiconductor Stocks Wall Street Analysts Predict Could Soar In 2025</a></li>
</ul>



Illustration created using artificial intelligence via Midjourney.

Analyst Color

Equities

Large Cap

Broad U.S. Equity ETFs

Hedge Funds

Econ #s

Federal Reserve

Markets

ETFs

Investors Aggressively Bought Stocks, ETFs In Volatile Fed Week: Bank Of America Reveals Largest Inflows Since 2017

In a brief but dramatic Christmas Eve disruption, American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) grounded all flights across the United States on Tuesday due to <a href="https://www.benzinga.com/markets/equities/24/12/42665923/is-stock-market-open-on-christmas-eve-2024-a-quick-guide-for-market-hours-banks-and-whats-closed-for-santa-claus">a temporary technical outage</a>. 



The issue was resolved by 7:50 a.m. ET, with the carrier restoring operations and addressing disruptions caused by the nationwide halt.



<h3 class="wp-block-heading">Flights Resume After Hours Of Uncertainty</h3>



An hour earlier, the Federal Aviation Administration issued an advisory stating that the carrier had halted all flights across the country, Reuters reports.



Passengers shared their frustration on X before the issue was resolved, with one flyer <a href="https://x.com/SACKsonville17/status/1871513983683067982">reporting</a>, "I just heard from the gate crew that there's a massive system outage and they can't scan boarding passes.&#8221;



The FAA's Air Traffic Control System Command Center later issued an update lifting the nationwide <a href="https://www.fly.faa.gov/adv/adv_otherdis.jsp?advn=26&amp;adv_date=12242024&amp;facId=DCC/DCC&amp;title=AAL+GROUND+STOP+CANCELLATION&amp;titleDate=12/24/24">groundstop </a>for American Airlines.



<h3 class="wp-block-heading">Airlines Briefly Recover Losses</h3>



Investors were quick to react. American Airlines stock initially plunged over 3% in premarket trading but bounced back, erasing all losses after systems were restored.



A benchmark of airlines stocks, as represented by the U.S. Global Jets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JETS#NYSE">JETS</a>), was 0.6% lower by 8:05 a.m. in New York.



Shares of United Airlines Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>) and Delta Air Lines Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAL#NYSE">DAL</a>) were both 0.2% higher. Alaska Air Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALK#NYSE">ALK</a>) was also up 0.2%, while Southwest Airlines Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) was unchanged. 



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42660092/microstrategy-sinks-after-nasdaq-100-inclusion-bitcoin-bet-under-fire">MicroStrategy Sinks After Nasdaq 100 Inclusion: Bitcoin Bet Under Fire?</a></li>
</ul>



Photo: Nate Hovee/Shutterstock.com

News

Sector ETFs

JETS

American Airlines Lifts Christmas Eve Grounding, Shares Bounce Back

Editor&#8217;s note: the story has been updated to reflect that Luca Netz is the CEO, not the creator of Pudgy Penguins.



The Pudgy Penguins (CRYPTO: PENGU) <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42562051/pudgy-penguins-pengu-token-extends-rally-outperforms-dogecoin-shiba-inu-on-wednesday">meme coin is seeing a surge in interest</a>, fueled by new exchange listings, bullish sentiment and whale accumulation. 



What Happened: Onchain Lens <a href="https://x.com/OnchainLens/status/1871397092125769748">data</a> shows that a newly created wallet acquired 519.99 million PENGU tokens, valued at $14.72 million, via Binance. &nbsp;



In Mario Nawfal's latest Crypto Daily episode posted on <a href="https://x.com/MarioNawfal/status/1871182703816839401">X</a> on Dec 23, Luca Netz, the CEO of Pudgy Penguins, shared insights into the project's vision.



He dismissed the idea that Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>) will maintain dominance forever, labeling it as a "bad assumption." 



Netz emphasized that memetic characters like Pudgy Penguins remain underdeveloped and have untapped cultural potential.



He added that in terms of social viewership and other factors Dogecoin and Pepe (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">PEPE</a>) are the only two closest competitors.



Netz short term goal for Pudgy Penguins is to make it a cultural phenomenon which has happened only twice earlier in the crypto space – DOGE and Bored Apes and Ape. 



The next big step for Pudgy he believes is a movie TV show and a blockbuster game.



<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>Pudgy Penguins (CRYPTO: PENGU)</td><td>&nbsp;$0.03558</td><td>$2.2 billion</td><td>+28.4%&nbsp;</td><td>+612.3%&nbsp;</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)</td><td>&nbsp;$0.3198</td><td>$47.1 billion</td><td>+1.3%&nbsp;</td><td>-21.1%&nbsp;</td></tr><tr><td>Pepe (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">PEPE</a>)</td><td>&nbsp;$0.00001828&nbsp;</td><td>$7.7 billion</td><td>+1.4%&nbsp;</td><td>+22.3%&nbsp;</td></tr></tbody></table></figure>



Trader Notes: Wizard of SoHo, a prominent crypto trader, <a href="https://x.com/wizardofsoho/status/1871313321644666983">revealed</a> that PENGU is among his three biggest retail bets for 2025, alongside Dogecoin and Chillguy. 



He also holds smaller positions in Pepe, Mog (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/">MOG</a>) and Rekt.



Lord Durden, another investor, shared the "PENGU prophecy roadmap," highlighting its future potential.



<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">The <a href="https://twitter.com/search?q=%24PENGU&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$PENGU</a> prophecy roadmap &#x1f427; I don't make the rules &#x1f937;&#x1f3fb;&#x200d;&#x2642;&#xfe0f; GCR does &#x1f525; <a href="https://t.co/3O3lttbXHB">pic.twitter.com/3O3lttbXHB</a>&mdash; Lord Durden (@LordDurden) <a href="https://twitter.com/LordDurden/status/1871335848148668423?ref_src=twsrc%5Etfw">December 23, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Community News: Kamino Finance, a Solana DeFi protocol, <a href="https://x.com/KaminoFinance/status/1871492434443817440">announced</a> a "PENGU incentives boost" in collaboration with Pudgy Penguins and JitoSol. Depositors will receive 2,500 JITO and 375,000 PENGU incentives over the next month.



Bithumb, South Korea's largest digital asset platform, <a href="https://x.com/BithumbOfficial/status/1871426950113509529">listed</a> PENGU effective Dec. 24.



Pudgy Penguins' official account celebrated reaching 500,000 holders.



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42562051/pudgy-penguins-pengu-token-extends-rally-outperforms-dogecoin-shiba-inu-on-wednesday">Pudgy Penguins PENGU Token Extends Rally, Outperforms Dogecoin, Shiba Inu On Wednesday</a></li>
</ul>



Image via Pudgy Penguin

Cryptocurrency

$DOGE

$MOG

$PEPE

Careful Dogecoin, Your Dominance Isn't Forever, Pudgy Penguins' CEO Says As PENGU Meme Coin Surges 28% (CORRECTED)

Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) CEO Elon Musk on Monday said that the EV company could exceed the value of all transport companies with the exception of his rocket manufacturing company SpaceX. 



What Happened: &#8220;With a LOT of work and good ideas, I think it could exceed the value of all transport companies, excluding SpaceX,&#8221; Musk said in a post on social media platform X. 



<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">With a LOT of work and good ideas, I think it could exceed the value of all transport companies, excluding SpaceX&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1871107096122712450?ref_src=twsrc%5Etfw">December 23, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The CEO was responding to an X user who noted that the company&#8217;s present-day market cap exceeds that of several automakers. 



Tesla shares closed up 2.27% on Monday at $430.60. The stock is up by 73.3% year-to-date, thanks to the rally that followed Donald Trump&#8216;s victory in the U.S. Presidential elections last month. 



Why It Matters: Tesla has a market cap of 1.382 trillion as of its last close. The company&#8217;s American rivals Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) and General Motors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) have a market cap of $39.35 billion and $58 billion respectively as of their previous close. 



SpaceX, meanwhile, hit $350 billion valuation after the company and its investors agreed to purchase $1.25 billion of insider shares earlier this month. The new valuation makes SpaceX the most valuable private startup in the world. Its valuation, in fact, trumps the valuation of listed rival&nbsp;Boeing Co. Boeing has a market cap of only $132.94 billion as of last close.



Check out more of Benzinga'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/24/12/42665617/hyundai-ev-owners-can-charge-on-tesla-supercharger-network-starting-q1-2025" target="_blank" rel="noreferrer noopener">Tesla Supercharger Network Opens Up For Hyundai EV Owners Starting Q1 2025</a></li>
</ul>



Photo courtesy: Shutterstock

SPACE

Tech

TSLA

Tesla's Valuation Could Exceed All Transport Companies But SpaceX, Says CEO Elon Musk, But Notes It Will Take A 'Lot Of Work And Good Ideas'

U.S. stock futures advanced on Tuesday, ahead of a shortened trading session owning to Christmas Eve. The stock market will shut at 1 p.m. ET, while the bond market closes at 2:00 p.m. ET on Tuesday, whereas both the markets will remain closed for Christmas on Dec. 25. Futures of all four major indices advanced.



The S&amp;P 500 index is on its way to registering a robust 20% plus return for the second consecutive year in 2024, as most analysts expect a &#8220;Santa Rally&#8221; during this time of the year.



The 10-year and two-year Treasury notes yielded 4.59% and 4.34%, respectively. The probability of having no change in the interest rates for the upcoming Jan. 31, 2025 decision was at 91.4%, according <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">to</a> CME Group&#8217;s FedWatch tool.



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>0.19%</td></tr><tr><td>S&amp;P 500</td><td>0.12%</td></tr><tr><td>Dow Jones</td><td>0.02%</td></tr><tr><td>Russell 2000</td><td>0.02%</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 up 0.16% to $595.67 and the Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.24% to $524.10, according to <a href="https://pro.benzinga.com/dashboard">Benzinga</a> Pro data.



Cues From The Last Session



U.S. stocks rebounded on <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/12/42666701/nasdaq-gains-around-1-as-tesla-nvidia-rise-ahead-of-christmas-greed-index-remains-in-fear-zone">Monday</a>, with the tech-heavy Nasdaq leading the gains. The Nasdaq Composite surged 0.98%, buoyed by strong performances from Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and Nvidia Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).



Economic data released on Monday showed mixed results. The Chicago Fed National Activity Index improved slightly, while U.S. durable goods orders unexpectedly declined.



Sector performance was varied. Communication services, healthcare, and information technology led the gains, while consumer staples and materials lagged. Last week, all major indices posted losses. The Dow Jones Industrial Average suffered its third consecutive losing week, declining by roughly 2.3%. The S&amp;P 500 and Nasdaq Composite also experienced declines, falling by approximately 2% and 1.8%, respectively. 



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>0.98%</td><td>19,764.89</td></tr><tr><td>S&amp;P 500</td><td>0.73%</td><td>5,974.07</td></tr><tr><td>Dow Jones</td><td>0.16%</td><td>42,906.95</td></tr><tr><td>Russell 2000</td><td>-0.22%</td><td>2,237.44</td></tr></tbody></table></figure>



Insights From Analysts



According to the chief market strategist at Carson Research, Ryan Detrick even though the last seven days of the previous year were negative, &#8220;The next 7 days are officially the Santa Claus Rally period.&#8221;



<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">The next 7 days are officially the Santa Claus Rally period. Down last year, but down back-to-back years only twice since 1950. <a href="https://t.co/S5czvrd6SY">pic.twitter.com/S5czvrd6SY</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1871296502536307092?ref_src=twsrc%5Etfw">December 23, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Detrick also added that no other seven-day period except the last seven days of the year is more likely to be higher. This period of &#8220;Santa Rally&#8221; has given positive returns at least 78.4% of the time.



<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">These next 7 trading days are known as the Santa Claus Rally period. There is no 7 day period more likely to be higher (78.4% of the time) and only two 7 day periods have a better avg return (1.29%). &#x1f385; <a href="https://t.co/40qVwHa1rS">pic.twitter.com/40qVwHa1rS</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1871322312219468049?ref_src=twsrc%5Etfw">December 23, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



He also added that this year has seen only an 8.5% correction or peak-to-through pullback in August, however, on average a year sees a 14.2% correction, increasing the possibility of some correction in 2025.



<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">S&amp;P 500 up about 25% this year with only an 8.5% peak-to-through pullback all year (August). Just remember the avg year sees an 14.2% correction, which increases the odds it might happen next year. <a href="https://t.co/nV9i2yL9dU">pic.twitter.com/nV9i2yL9dU</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1871299031672205315?ref_src=twsrc%5Etfw">December 23, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



While the <a href="https://x.com/RyanDetrick/status/1871317802306707882">first</a> year of a new president&#8217;s term has usually been strong since 1897, the returns during the first year of a second term haven&#8217;t been very good overall, Detrick said.



<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">Returns during year one of a second term haven&#39;t been very good overall, but way better lately. Down 5 in a row, but now up 4 in a row. &#x1f914; <a href="https://t.co/aUrCbf22Gw">pic.twitter.com/aUrCbf22Gw</a>&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1871320275129967103?ref_src=twsrc%5Etfw">December 23, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Talking about the proposed policy changes by President-elect Donald Trump, Louis Navellier of Navellier &amp; Associates said, &#8220;On the table is all the uncertainty about the many changes that the new Trump administration has announced, both how quickly they will be implemented and what the ripple effects might be especially tariffs. The conflicts in the Mideast and Ukraine appear to be escalating. In the end, these many risks will only impact stocks if they impact earnings, and for now, estimates for &#8217;25 are holding.



&#8220;Optimistic analyst targets, stretched positioning and high valuations leave the market vulnerable to larger pullbacks in our view, should we see any of the rosy projections falling short of lofty expectations. This does not leave us underweight Equities. We acknowledge the power of bull markets mean there may still be room to run,&#8221; said Mario Georgiou, executive director, head of investments, at InCred Global Wealth.



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



Upcoming Economic Data



A few important data points are slated to be released in this truncated week that will help investors determine the future course of action.



<ul>
<li>On Tuesday, November&#8217;s data for durable goods orders and durable goods minus transportation will be released at 8:30 a.m., ET.</li>



<li>New home sales for November will be released at 10:00 a.m. ET.</li>



<li>On Thursday, initial jobless claims data till Dec. 21 will announced at 8:30 a.m. ET.</li>



<li>On Friday, November&#8217;s data for the advanced U.S. trade balance in goods, advanced retail inventories, and advanced wholesale inventories will be announced at 8:30 a.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>Carbon Revolution PLC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CREV#NASDAQ">CREV</a>) was up 56.81% in premarket after it inked an agreement with OIC for a further $25 million in financing to support the ongoing liquidity of the business.</li>



<li>Avinger Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGR#NASDAQ">AVGR</a>) was up 236.4%. Last week, the company announced it has received a Notice of Allowance for a U.S. patent titled "Catheter Device With Detachable Distal End (For The Treatment Of Peripheral Artery Disease)."</li>



<li>Tivic Health Systems Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TIVC#NASDAQ">TIVC</a>) was up 68% after the company&#8217;s CEO outlined 2025 priorities, seeing a 30% reduction in net operating loss.</li>



<li>Neuehealth Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEUE#NYSE">NEUE</a>) gained 58.93% after it entered into a definitive merger to be acquired for $7.33 per share.</li>



<li>Theriva Biologics Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOVX#NYSE">TOVX</a>) rose 30% after it received a notice of allowance for a U.S. Patent titled "Microbiome Protection from Oral Antibiotics."</li>
</ul>



Commodities, Gold And Global Equity Markets:



Crude oil futures were higher in the early New York session by 0.77% to hover around $69.77 per barrel.



The gold spot index was up by 0.11% to $2,631.19 per ounce. The Dollar Index was up 0.16% to 108.210 level.



Asian markets were mixed on Tuesday, as Hong Kong&#8217;s Hang Seng, China&#8217;s CSI 300 and Australia&#8217;s ASX 200 index rose. Whereas, South Korea&#8217;s Kospi, Japan&#8217;s Nikkei 225, and India&#8217;s S&amp;P BSE Sensex index declined. Most European markets traded higher.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/24/12/42640560/japan-cannot-happen-here-was-common-refrain-20-years-ago-in-the-west-mohammed-el-erian-says-as-tokyo-climbs-out-of-the-hole-this-country-looks-at-risk-of-falling-in">Mohammed El Erian Says This Country Faces Japan-Style Economic Risk Even As Tokyo Rebounds</a></li>
</ul>



Photo courtesy: Wikimedia

Futures

Economics

Pre-Market Outlook

Trading Ideas

AVGR

CREV

NEUE

NVDA

TIVC

TOVX

US Stocks To Open Higher On Shortened Trading Day: Santa Claus Rally Period Officially Begins, Says Analyst

Warren Buffett&nbsp;is entering 2025 with the largest cash reserve at&nbsp;Berkshire Hathaway&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) in over three decades. 



What Happened:&nbsp;The conglomerate&#8217;s cash holdings have reached a staggering $325 billion, marking the highest percentage of total assets since 1990, CNBC<a href="https://www.cnbc.com/2024/12/22/buffett-heads-into-2025-with-biggest-cash-position-in-more-than-30-years.html"> reported</a> on Tuesday.



This cash accumulation comes as Buffett, 94, finds few attractive investment opportunities amid a highly valued market. The &#8220;Buffett indicator,&#8221; which compares&nbsp;the total market value of&nbsp;U.S. stocks to GDP, has soared to 209%, a level not seen since the 1929 market peak, according to Oppenheimer data.



Throughout 2024, Buffett sold significant portions of his largest holdings, including&nbsp;Apple Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and&nbsp;Bank of America Corp.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), offloading $133 billion in stocks during the year&#8217;s first three quarters. Despite this, Berkshire&#8217;s shares rose 27% in 2024, its best performance since 2021.



See Also:&nbsp;<a href="https://www.benzinga.com/markets/equities/24/12/42642371/smith-wessons-fate-hangs-in-the-balance-as-supreme-court-weighs-mexicos-gun-trafficking-lawsuit-swbi-stock-down-27-over-past-month-heres-whats-next?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Smith &amp; Wesson&#8217;s Fate Hangs In The Balance As Supreme Court Weighs Mexico&#8217;s Gun Trafficking Lawsuit: SWBI&nbsp;Stock Down 27% Over Past Month, Here&#8217;s What&#8217;s Next</a>



Buffett&#8217;s strategy may involve waiting for a major acquisition opportunity, potentially benefiting his successor,&nbsp;Greg Abel. Analyst&nbsp;Kevin Heal&nbsp;from Argus Research suggests that some of the cash could be used for investments in distressed situations, allowing successors to leave their mark.



"This will also provide an opportunity for the successors to make their own mark when Mr. Buffett ocially hands over the reins."



Why It Matters: This substantial cash reserve positions Berkshire Hathaway for strategic maneuvers in the coming years. Recently, Buffett&#8217;s investment activities have shown a shift. In December, Berkshire significantly increased its stake in <a href="https://www.benzinga.com/markets/equities/24/12/42666459/warren-buffett-once-called-berkshire-the-opposite-of-those-who-hurry-to-sell-now-hes-offloading-apple-and-snapping-up-occidental-petroleum-amid-a-20-drop">Occidental Petroleum Corp.</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>), acquiring approximately 8.9 million shares over a few days. This move, totaling around $405 million, raised Berkshire&#8217;s ownership to 28% of Occidental, valued at approximately $12 billion.



Price Action: As per <a href="https://pro.benzinga.com">Benzinga Pro</a>, BRK.A&#8217;s YTD returns rose by 25.69% while that of BRK.B increased by 25.35%



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42642808/americas-fatal-flaw-is-its-sharply-increasing-addiction-to-government-debt-says-expert-and-the-mother-of-all-bubbles-is-ready-to-pop?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">America&#8217;s &#8216;Fatal Flaw&#8217; Is Its &#8216;Sharply Increasing Addiction&#8217; To Government Debt, Says Expert And The &#8216;Mother Of All Bubbles&#8217; Is Ready To Pop</a></li>
</ul>



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



Image via Shutterstock

General

AAPL

Warren Buffett Heads Into 2025 With $325 Billion Cash Pile, His Largest in Over Three Decades: Expert Says It 'Will Provide An Opportunity For The Successors To Make Their Own Mark'

As the holiday season approaches, major global financial markets are preparing to halt operations in observance of Christmas Eve 2024. This annual closure affects trading activities across various exchanges worldwide.



On Tuesday, Dec. 24, NYSE markets will close early at 1:00 p.m. Eastern Time, with eligible options closing at 1:15 p.m. Late trading sessions for NYSE American Equities, NYSE Arca Equities, NYSE Chicago, and NYSE National will end at 5:00 p.m. Meanwhile, the Nasdaq will also close early at 1:00 p.m. ET.



The&nbsp;New York Stock Exchange&nbsp;and&nbsp;Nasdaq Stock Market&nbsp;will be closed on Dec.&nbsp;25 in observance of the&nbsp;federal holiday. Additionally, bond&nbsp;markets and over-the-counter markets will&nbsp;also not operate on this day.



This follows a strong year for the markets, with the Dow Jones Industrial Average, represented by the SPDR Dow Jones Industrial Average ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>), at 13.80% as of Tuesday.



Meanwhile, the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) which tracks the S&amp;P 500 saw its year-to-date returns climb by 25.12%, while that of the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which represents the Nasdaq composite, rose by 27.68%.



See Also:&nbsp;<a href="https://www.benzinga.com/news/global/24/12/42638862/kiyosaki-warns-of-global-financial-crisis-protect-your-wealth-by-investing-in-real-assets?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">&#8216;Rich Dad Poor Dad&#8217; Author Robert Kiyosaki Warns Of Global Financial Crisis: &#8216;Invest In Real Assets To Protect Your Wealth by Investing in Real Assets&#8217;</a>



Branches of major banks such as&nbsp;Capital One,&nbsp;Bank of America,&nbsp;PNC,&nbsp;Truist, and&nbsp;CitiBank&nbsp;will remain closed on Dec. 25, as reported by USA Today. 



The London Stock Exchange will observe a half-day on Dec. 24, with market closing processes starting at 12:30 London time.



The&nbsp;Hong Kong Stock Exchange&nbsp;will not have an extended morning or afternoon session on Christmas Eve, and no after-hours trading will occur on Dec. 24. Both Dec. 25 and the following weekday, December 26, will be holidays. 



However, holiday trading exchange contracts will be available on Dec. 24, 25, and 26. Meanwhile, the&nbsp;Shanghai Stock Exchange&nbsp;and the&nbsp;Tokyo Stock Exchange&nbsp;will remain open during this period.



Read Next:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/24/12/42639737/trumps-call-to-reclaim-panama-canal-sparks-backlash-every-square-meter-belongs-to-panama-says-president-mulino?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Trump&#8217;s Call To Reclaim Panama Canal Sparks Backlash: &#8216;Every Square Meter Belongs To Panama,&#8217; Says President Mulino</a></li>
</ul>



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



Image via Shutterstock

Is Stock Market Open On Christmas Eve 2024? A Quick Guide For Market Hours, Banks And What's Closed For Santa Claus

Bitcoin moved sideways while the altcoin market rallied significantly on Monday as traders pivoted away from the leading cryptocurrency ahead of Christmas.



<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>-0.37%</td><td>$94,282.97</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>+4.35%</td><td>$3,405.60</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>+4.51%</td><td>$0.3227</td></tr></tbody></table></figure>



What Happened: Bitcoin remained choppy, oscillating between the $92,000-$96,000 zone. The sideways movement comes a day after the apex cryptocurrency<a href="https://www.benzinga.com/24/12/42640293/trump-congratulates-bitcoiners-on-new-all-time-highs-as-apex-crypto-suffers-first-weekly-loss-since-election-triumph"> closed at a weekly loss for the first time</a> since Donald Trump's election victory last month.



Investors shifted their capital to Ethereum and the rest of the altcoin market. The world&#8217;s largest cryptocurrency rose 4.35% to nearly $3,400.



Bitcoin's dominance fell by 1.53%, while Ethereum and altcoin saw increases in their respective market shares.



Over $278 million was liquidated from the market in the last 24 hours, with nearly equal proportions of long and short liquidations.



Bitcoin's Open Interest rose 2.49% in the last 24 hours. An increase in Open Interest, coming alongside a sideways price action, indicated a potential upside move.&nbsp;



More than 66% of traders on Binance were leveraged long on Bitcoin, according to the Long/Short Ratio.



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



Top Gainers (24-Hours)



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:45 p.m. ET)</td></tr><tr><td>Virtuals Protocol (VIRTUAL)</td><td>+29.76%</td><td>$2.99</td></tr><tr><td>Aave (AAVE)</td><td>+22.56%</td><td>$385.47</td></tr><tr><td>XDC Network (XDC)</td><td>+15.14%</td><td>$0.08652</td></tr></tbody></table></figure>



The global cryptocurrency market capitalization stood at $3.32 trillion, following an increase of 2.04% in the last 24 hours.



Stocks began the holiday week high on spirits. The Dow Jones Industrial Average rose 66.69 points, or 0.16%, to close at 42,906.95. The S&amp;P 500 added 0.73%, ending at 5,974.07, while the tech-heavy Nasdaq Composite spiked 0.98% to 19,764.88.



Data released Monday <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42657230/us-consumer-confidence-drops-in-december-expectations-signal-potential-economic-weakness-in-2025">indicated a sharp fall in U.S. consumer morale</a>, with the Conference Board&#8217;s Consumer Confidence Index falling to 104.7 in December, returning to mid-range levels seen during the previous two years.



The New York Stock Exchange and the Nasdaq will close early on Christmas Eve, and the markets will be shut on Christmas Day.



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



Analyst Notes: In a note to Benzinga, Arthur Azizov, CEO of cryptocurrency payment provider B2BINPAY attributed the market's ongoing correction to Bitcoin's growing dominance.



"Naturally, we can now anticipate a decline in Bitcoin's dominance, which should create room for altcoins to pick up momentum again," Azizov predicted. "Overall, this is all playing out as expected, with most assets returning to the 50% retracement zone of their recent impulse moves."



Widely followed cryptocurrency analyst and trader Ali Martinez drew attention to Ethereum's "most significant" support level of $3,030 &#8211; $3,130 and the "most significant" resistance level of $3,640 &#8211; $3,740.



"A sustained close outside of this no-trade zone will determine the direction of ETH&#8217;s trend," Martinez remarked.



<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">The most significant support level for <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw">#Ethereum</a> <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> is between $3,030 &#8211; $3,130, and the most significant resistance wall is $3,640 &#8211; $3,740. A sustained close outside of this no-trade zone will determine the direction of <a href="https://twitter.com/hashtag/ETH?src=hash&amp;ref_src=twsrc%5Etfw">#ETH</a>&#39;s trend. <a href="https://t.co/YCGKucGvjt">pic.twitter.com/YCGKucGvjt</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1871280113209266444?ref_src=twsrc%5Etfw">December 23, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Read Next:&nbsp;&nbsp;&nbsp;&nbsp;



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42660092/microstrategy-sinks-after-nasdaq-100-inclusion-bitcoin-bet-under-fire">MicroStrategy Sinks After Nasdaq 100 Inclusion: Bitcoin Bet Under Fire?</a></li>
</ul>

Movers

$BTC

$ETH

Bitcoin Flat, Ethereum, Dogecoin Spike Ahead Of Christmas: Analyst Says Decline In BTC Dominance Leaves 'Room For Altcoins To Pick Up'

On Monday, Cathie Wood-led Ark Invest executed notable trades involving Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), and Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>).



The Tesla Trade



Ark Invest made a significant move by selling 13,040 shares of Tesla Inc. through its ARK Innovation ETF (NYSE: ARKK). This transaction, valued at approximately $5.6 million, comes as <a href="https://www.benzinga.com/24/12/42641207/researcher-says-cancelation-of-7500-ev-tax-credit-could-impact-teslas-deliveries-despite-ceo-elon-musk-claiming-otherwise">Tesla faces potential challenges</a> related to the possible cancellation of the $7,500 EV tax credit in the U.S. Researcher Troy Teslike has highlighted that similar tax credit cancellations in Europe have previously led to a decline in Tesla&#8217;s sales. Despite these concerns, Tesla&#8217;s stock closed at $430.60, marking a 2.27% increase.



The Palantir Trade



Ark Invest sold shares of the Alex Karp-led company on Monday. Palantir, which closed at $80.69, has been actively expanding its footprint in the defense sector. Ark sold 22,807 Palantir shares through the flagship ARKK ETF. The transaction was valued at $1.84 million.



The company, alongside Anduril Industries, is leading a consortium to <a href="https://www.benzinga.com/markets/equities/24/12/42640010/palantir-and-anduril-reportedly-lead-consortium-partner-with-spacex-and-openai-to-compete-against-traditional-defense-contractors-in-850-billion-us-military-market">challenge traditional defense contractors</a>, according to a previous report. This move positions Palantir as a formidable player in the $850 billion U.S. military market.



The Amazon.com Trade



Ark Invest&#8217;s trade activity on Amazon was also noteworthy. The firm purchased 7,499 of the e-commerce giant&#8217;s shares through Ark Fintech Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKF#NYSE">ARKF</a>). The transaction was valued at nearly $1.7 million. The company&#8217;s stock, which closed at $225.06 with a slight 0.06% uptick, has been the subject of optimistic projections. An analyst with an 86% accuracy rate has predicted a 24% upside for Amazon, as detailed in a <a href="https://www.benzinga.com/analyst-ratings/price-target/24/12/42646865/this-analyst-with-86-accuracy-rate-sees-around-24-upside-in-amazon-com-here-are-5-stock-picks-for-last-week-from-wall-streets-most-accurate-analysts">recent analysis</a>. This forecast aligns with Ark&#8217;s strategic interests in high-growth potential stocks.



See Also:&nbsp;<a href="https://www.benzinga.com/markets/24/12/42638957/warren-buffetts-timeless-advice-if-youre-gonna-do-dumb-things-because-your-stock-goes-down-you-shouldnt-own-a-stock-at-all?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Warren Buffett's Timeless Advice For Investing $10,000: &#8216;If You're Gonna Do Dumb Things Because Your Stoc</a>



Other Key Trades:



<ul>
<li>Bought stock of 10X Genomics Inc. via ARKK and ARKG. </li>



<li>Bought shares of Gitlab Inc. through ARKK.</li>
</ul>



Image via Benzinga YouTube and Unsplash



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42635671/analyst-bullish-on-shiba-inu-sees-235-surge-despite-recent-fall?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Analyst Bullish on Shiba Inu, Sees 235% Surge Despite Recent Fall</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>

AMZN

ARKF

ARKK

PLTR

Cathie Wood-Led Ark Invest's Monday Moves: Dumps Tesla, Palantir Stock, Adds Amazon

Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) is reportedly planning to <a href="https://www.benzinga.com/24/12/42428505/google-asks-ftc-to-kill-microsofts-monopoly-over-hosting-openai-technology-on-its-cloud-servers-report">reduce its dependence</a> on ChatGPT-maker OpenAI.



What Happened: Microsoft has been working on integrating internal and third-party artificial intelligence models into its AI product, Microsoft 365 Copilot, reported Reuters, citing sources familiar with the effort.



This move is a strategic step to diversify from the current underlying technology of OpenAI and reduce costs.



The Satya Nadella-led company is also decreasing 365 Copilot&#8217;s dependence on OpenAI due to concerns about cost and speed for enterprise users, the report noted, citing the sources.



See Also: <a href="https://www.benzinga.com/markets/24/12/42642020/steve-ballmers-bold-investment-strategy-80-of-his-portfolio-is-in-microsoft-stock-heres-why-his-keep-it-simple-approach-is-winning-big?itm_source=parsely-api">Steve Ballmer&#8217;s Winning Investment Strategy: Billionaire Says &#8216;Keep It Simple&#8217; As His Microsoft Bet Pays Off Thanks To AI Boom</a>



A Microsoft spokesperson was quoted in the report saying that OpenAI continues to be the company&#8217;s partner on frontier models. &#8220;We incorporate various models from OpenAI and Microsoft depending on the product and experience.&#8221;



OpenAI and Microsoft did not immediately respond to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga's</a> request for comments.



Microsoft 365 Copilot is reportedly yet to prove its return on investment to enterprises. The tech giant has not shared specific sales data on the number of licenses sold.



Subscribe to the <a href="https://bztechtrends.beehiiv.com/subscribe">Benzinga Tech Trends newsletter</a> to get all the latest tech developments delivered to your inbox.



Why It Matters: This move mirrors those of other Microsoft business units which have altered the ways they use OpenAI models. For instance, GitHub, <a href="https://www.benzinga.com/news/23/11/35623886/microsofts-github-poised-for-growth-with-ai-tools-analyst-sees-5b-arr-potential">acquired by Microsoft</a> in 2018, added models from Anthropic and Alphabet Inc.'s (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>) Google in October as alternatives to OpenAI's GPT-4.



Previously it was reported that company insiders were concerned about Microsoft&#8217;s AI strategy being <a href="https://www.benzinga.com/news/24/03/37605368/is-microsoft-turning-into-it-for-openai-insiders-say-tech-giants-ai-strategy-is-overly-reliant-on-ch">heavily reliant on its partnership</a> with OpenAI.



In October, the two companies engaged in talks to decide how Microsoft's $14 billion investment in OpenAI would be <a href="https://www.benzinga.com/news/24/10/41407196/openais-for-profit-structure-adds-valuation-complexity-to-microsoft-and-other-equity-investors-repor">converted into equity</a> in the AI firm.



OpenAI plans to <a href="https://www.benzinga.com/24/12/42382569/elon-musk-asks-was-it-ever-not-a-lie-as-he-accuses-openai-of-selling-out-to-microsoft-and-betraying-its-founding-mission">remove a clause that restricts</a> Microsoft&#8217;s access to its most advanced AI models upon achieving artificial general intelligence, according to a report published in December.



Price Action: Microsoft&#8217;s stock fell 0.31% on Monday, closing at $435.25. However, year-to-date, the shares have risen by 17.36%, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data</a>.



Photo via Shutterstock



Check out more of Benzinga's Consumer Tech coverage by <a href="https://www.benzinga.com/topic/consumer-tech">following this link</a>.



Read Next:



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<li><a href="https://www.benzinga.com/24/12/42633922/qualcomm-bags-win-in-chips-licensing-trial-against-arm-but-the-battle-is-not-over-yet?itm_source=parsely-api">Qualcomm Bags Win In Chips Licensing Trial Against Arm, But The Battle Is Not Over Yet</a></li>
</ul>



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

Media

GOOG

GOOGL

MSFT

Microsoft Invested Nearly $14 Billion In OpenAI But Now Its Reducing Its Dependence On The ChatGPT-Parent: Report

The semiconductor sector has had an electrifying run in recent years, but 2024 proved to be more selective. While some chipmakers soared to triple-digit gains, others <a href="https://www.benzinga.com/topic/chipmakers">struggled to stay afloat. </a>



As traders look forward to2025, a fresh question emerges: Should you chase the winners, pick the laggards, or focus on undervalued opportunities with high analyst backing?



The iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) delivered a 15.2% year-to-date gain as of Dec. 23, cooling off after a massive 65% surge in 2023. Within the group, performance varied wildly:



<ul>
<li>Top Performers: Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) rose 180%, while Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) gained 109%.</li>



<li>Biggest Laggards: Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) sank 60%, Microchip Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) fell 36%, and ON Semiconductor Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>) dropped 20%.</li>
</ul>



The key takeaway? The semiconductor market is far from homogenous, with companies diverging sharply based on their ability to capitalize on emerging trends like AI.



<h3 class="wp-block-heading">5 Chip Stocks Analysts Are Betting On for 2025</h3>



Rather than chasing laggards or jumping on already overheated names, traders might want to focus on undervalued semiconductor stocks that align with analysts' bullish forecasts. 



Here are five potential winners for 2025:



<h4 class="wp-block-heading">5. Applied Materials (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>)</h4>



<ul>
<li>Median Price Target (upside vs. current market price) : 32.02%</li>



<li>2024 YTD Performance: +3.29%</li>



<li>2023 Total Return: 67.97%</li>



<li>Market Cap: $136.21 billion</li>



<li>P/E Ratio (Next 12 Months): 17.7x</li>
</ul>



<h4 class="wp-block-heading">4. Monolithic Power Systems (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MPWR#NASDAQ">MPWR</a>)</h4>



<ul>
<li>Median Price Target (upside vs. current market price): 33.08%</li>



<li>2024 YTD Performance: -2.20%</li>



<li>2023 Total Return: 79.78%</li>



<li>Market Cap: $30.09 billion</li>



<li>P/E Ratio (Next 12 Months): 38.6x</li>
</ul>



<h4 class="wp-block-heading">3. Micron Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>)</h4>



<ul>
<li>Median Price Target (upside vs. current market price): 43.12%</li>



<li>2024 YTD Performance: +4.80%</li>



<li>2023 Total Return: 71.93%</li>



<li>Market Cap: $99.64 billion</li>



<li>P/E Ratio (Next 12 Months): 11.4x</li>
</ul>



<h4 class="wp-block-heading">2. Advanced Micro Devices Inc. </h4>



<ul>
<li>Median Price Target (upside vs. current market price): 45.83%</li>



<li>2024 YTD Performance: -15.34%</li>



<li>2023 Total Return: 127.59%</li>



<li>Market Cap: $202.53 billion</li>



<li>P/E Ratio (Next 12 Months): 27.7x</li>
</ul>



<h4 class="wp-block-heading">1. Microchip Technology</h4>



<ul>
<li>Median Price Target (upside vs. current market price): 49.26%</li>



<li>2024 YTD Performance: -36.11%</li>



<li>2023 Total Return: 30.90%</li>



<li>Market Cap: $30.94 billion</li>



<li>P/E Ratio (Next 12 Months): 34.9x</li>
</ul>



Now Read: 



<ul>
<li><a href="https://www.benzinga.com/24/12/42657620/amd-and-micron-top-analyst-picks-for-ai-and-next-gen-tech-growth">AMD and Micron Are Top Analyst Picks for AI and Next-Gen Tech Growth</a></li>
</ul>



Image: Shutterstock

Macro Economic Events

AMAT

AVGO

INTC

MCHP

MPWR

SOXX

5 Semiconductor Stocks Wall Street Analysts Predict Could Soar In 2025

Shares of MicroStrategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) fell more than 8.5% Monday, marking a rough debut to its nascent tenure <a href="https://www.benzinga.com/24/12/42656254/tech-stocks-eye-christmas-gains-microstrategy-tumbles-as-bitcoin-dips-to-93000-whats-driving-markets-monday">among the Nasdaq 100. </a>



The software company and top corporate Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) holder has struggled lately, logging its fifth losing session in the past six sessions and plunging over 37% since its all-time high last month.



<h3 class="wp-block-heading">Why Is MicroStrategy Falling?</h3>



On Monday, MicroStrategy announced it sold $561 million in common stock to purchase an additional 5,262 Bitcoins at an average price of $106,662 per coin. This brings the company's total Bitcoin holdings to a staggering 444,262 BTC.



Yet, both the size and the timing of this purchase raised eyebrows among traders and analysts. 



The latest Bitcoin purchase was Michael Saylor&#8216;s smallest to date. It&#8217;s a sharp contrast to the bold, big-ticket acquisitions that have defined his crypto strategy thus far.



The average price paid for the new Bitcoin stash is roughly 12% above current levels. Even more telling, the price exceeds the Dec. 17 record close of $106,151 per Bitcoin—an unusual move for a company known for strategically buying dips.



Critics didn't hold back. Peter Schiff, a well-known Bitcoin skeptic, took a jab at Saylor on X, saying:



"It seems like you are running out of firepower to keep propping up Bitcoin. Plus, not only is this your smallest buy, but the first time your average purchase price has been above the market price on the Monday you disclosed the buy."



Meanwhile, the market's reaction reflected growing unease.



 "$MSTR continues to look quite heavy," wrote the account Markets &amp; Mayhem on X. "The ‘infinite money glitch' isn't really a glitch at all. It's just trying to replace a failing core SaaS business with something that attracts today's high-beta-loving speculators."



<h3 class="wp-block-heading">A Risky Game Of Leverage</h3>



MicroStrategy's deep ties to Bitcoin have been both its crown jewel and its Achilles' heel. With over $41 billion worth of Bitcoin on its balance sheet as of December 2024, the company is inextricably linked to the volatile movements of the cryptocurrency market.



Yet, its latest purchase suggests cracks in its strategy. Not only was this one of the smallest Bitcoin buys in recent years, but it also indicates that MicroStrategy may be overextending itself as Bitcoin prices falter.



Adding to investor concerns is MicroStrategy&#8217;s pivot away from its original software business. The company has leaned heavily into Bitcoin speculation, prompting questions about its ability to generate sustainable cash flow from its core operations.



<h3 class="wp-block-heading">What&#8217;s Next For MSTR?</h3>



While MicroStrategy remains a favorite among Bitcoin bulls, the stock&#8217;s recent performance signals caution. The company has shed nearly 40% of its value in just over a month, despite Bitcoin trading near $100,000.



The broader Nasdaq 100 debut was supposed to be a moment of validation for MicroStrategy, but instead, it highlighted the risks of its hyper-concentrated bet on cryptocurrency.



As 2024 nears its end, all eyes will be on Bitcoin&#8217;s price trajectory. If the cryptocurrency can&#8217;t regain upward momentum, MicroStrategy&#8217;s high-stakes game could face mounting pressure.



Now Read: 



<ul>
<li><a href="https://www.benzinga.com/24/12/42653753/history-may-hint-at-sp-500-struggles-in-2025-yet-there-is-also-hope-heres-why">History Suggests S&amp;P 500 Could Struggle In 2025, But There&#8217;s Reason For Optimism</a></li>
</ul>



Image: Shutterstock

Mid Cap

Small Cap

MSTR

MicroStrategy Sinks After Nasdaq 100 Inclusion: Bitcoin Bet Under Fire?

Billionaire Stanley Druckenmiller, a George Soros protégé, is known for his &#8220;top-down&#8221; investing style. Druckenmiller&#8217;s strategy focuses on <a href="https://www.benzinga.com/general/health-care/24/12/42627207/stanley-druckenmillers-top-holding-has-outperformed-its-sector-by-252" target="_blank" rel="noopener">making large bets</a> on macroeconomic trends, prioritizing top-performing industries over individual companies.



The Bowdoin College and University of Michigan alumnus recently upped his stake in Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), a $1 trillion semiconductor company based in San Jose, California.



Druckenmiller closed his hedge fund, Duquesne Capital in 2010, but still maintains the Duquesne Family Office to manage his wealth.



Druckenmiller first bought 51,956 shares in the company in mid-to-late 2023, selling all before the next quarter. The latest Duquesne 13F filing, revealing the firm&#8217;s holdings as of Sept. 30, showed Druckenmiller upping his wager on Broadcom to 239,980 shares. The investment — up over 35% since September — represents a market value of almost $56 million, one of his largest holdings.



Shares of the company were already trading up over 100% between his first filing and the latest filing.



Also Read: <a href="https://www.benzinga.com/24/12/42653753/history-may-hint-at-sp-500-struggles-in-2025-yet-there-is-also-hope-heres-why">History Suggests S&amp;P 500 Could Struggle In 2025, But There&#8217;s Reason For Optimism</a>



Druckenmiller previously called NVIDIA Corp&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) ascension, buying shares in late 2022 and early 2023, but sold off most of his position before the company&#8217;s historic rally in 2024. The investor <a href="https://www.benzinga.com/markets/equities/24/10/41374232/amid-nvidias-stratospheric-rally-billionaire-investor-druckenmiller-regrets-cashing-out-of-ai-st">later called the sale</a> a &#8220;big mistake.&#8221;



Broadcom is a global technology company that designs, develops, and supplies semiconductor and infrastructure software solutions. Its products, which include chips for networking, broadband, wireless communications, and storage, as well as enterprise software for cybersecurity and data management, power a wide range of industries, from telecommunications and data centers to consumer electronics.



The company&#8217;s shares were trading almost 5% higher at the time of publication Monday following news that the U.S. is opening an investigation into China&#8217;s semiconductor industry policies, according to <a href="https://www.benzinga.com/pro/" target="_blank" rel="noopener">Benzinga Pro</a>.



Also Read:



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<li><a href="https://www.benzinga.com/24/12/42656254/tech-stocks-eye-christmas-gains-microstrategy-tumbles-as-bitcoin-dips-to-93000-whats-driving-markets-monday">Tech Stocks Eye Christmas Gains, Microstrategy Tumbles As Bitcoin Dips To $93,000: What&#8217;s Driving Markets Monday?</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

Druckenmiller Bets Big On Semiconductor Stock Just Before It Spikes To $1 Trillion

Luigi Mangione, the Ivy League grad <a href="https://www.benzinga.com/24/12/42541669/luigi-mangione-faces-murder-first-degree-life-in-prison-in-ceo-death-a-senseless-act-of-violence">accused of killing</a> UnitedHealthcare CEO Brian Thompson outside a New York Hilton on December 4, pled not guilty to state murder charges on Monday.



What Happened: Mangione faces 11 counts in New York, including first-degree murder, CNN <a href="https://www.cnn.com/2024/12/23/us/luigi-mangione-arraignment-new-york/index.html">reports</a>.



Veteran Manhattan prosecutor Joel Seidemann, assigned to the case by District Attorney Alvin Bragg, says the evidence against Mangione is substantial.



"I have never seen a case with such volume of evidence, aside from the issue of the quality of the evidence," Seidemann said during the proceeding. "This is not a usual case in terms of the thousands of hours of video."



Meanwhile, Mangione&#8217;s defense attorney Karen Friedman Agnifilo expressed concern about the possibility of a fair trial.



"He's a young man and he's being treated like a human ping pong ball by two warring jurisdictions here," Friedman Agnifilo said. "They're treating him like a human spectacle."



Why it Matters: Investigators allege that Mangione fled the crime scene on a bicycle, dumped his belongings in Central Park and left NYC on a bus.



The Maryland-born alumnus of the University of Pennsylvania was arrested in an Altoona, Pennsylvania McDonald&#8217;s on December 9. According to a criminal complaint, Mangione was found with a 3D-printed gun, a silencer and a fake ID.



A notebook found on Mangione in Altoona allegedly spoke negatively of the insurance industry and included a possible confession to the killing. ABC News <a href="https://abcnews.go.com/US/unitedhealthcare-ceo-shooting-suspect-inspired-unabomber-nypd-analysis/story?id=116653076">reported</a> that Mangione may have been inspired by Ted Kaczynski, also known as the Unabomber.



Mangione faced a highly publicized &#8220;perp walk&#8221; in his extradition to Manhattan on December 20. Mayor Eric Adams was seen walking closely behind Mangione following his arrival into the city, <a href="https://www.nytimes.com/2024/12/20/nyregion/luigi-mangione-eric-adams.html">according</a> to the New York Times.



Mangione&#8217;s alleged actions have drawn a polarizing response online. Several social media users expressed support of the killing, expressing outrage at the health insurance industry. Following the killing, Taylor Lorenz, a former Washington Post columnist, <a href="https://www.usermag.co/p/yes-we-want-insurance-executives">penned</a> a controversial Substack article titled, &#8220;Why &#8216;we&#8217; want insurance executives dead.&#8221;



Meanwhile, other commentators, such as New York Times columnist Bret Stephens, have <a href="https://www.nytimes.com/live/2024/12/04/opinion/thepoint/brian-thompson-luigi-mangione?smid=url-share">expressed</a> confoundment at Mangione&#8217;s online status as a &#8220;working class hero.&#8221; Mangione descended from a wealthy Maryland family and attended an elite college preparatory school. Meanwhile, Thompson grew up in rural Iowa and attended a public university.



Also Read:



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<li><a href="https://www.benzinga.com/24/12/42649864/tariffs-or-more-energy-analyst-warns-of-high-costs-limited-capacity-if-europe-bows-to-trumps-lng-push">Tariffs Or More Energy: Analyst Warns Of High Costs, Limited Capacity If Europe Bows To Trump&#8217;s LNG Push</a></li>
</ul>

Politics

Legal

Luigi Mangione, Suspected CEO Assassin, Pleads Not Guilty In New York Court

Could 2025 mark a sluggish year for the S&amp;P 500? Historical data suggests that investors may need to tread cautiously, especially given the patterns tied to the first year of <a href="https://www.benzinga.com/topic/donald-trump">a U.S. presidential term.</a> 



An analysis of market performance dating back to 1928 shows that the S&amp;P 500's average returns during the inaugural year of a presidency have lagged behind its typical performance—particularly under Republican administrations.



<h3 class="wp-block-heading">Historical Data Highlights First Year Struggles</h3>



The first year of a U.S. presidential term has historically been marked by volatility in 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>) – with performance oscillating between striking gains and painful losses. 



Data from Seasonax reveals that while the median return for the index in these years stands at 8.44%, the probability of positive performance—captured by a 58.33% winning ratio—barely tips the scales in favor of gains.



For comparison, in an average year since 1928, the S&amp;P 500 has delivered a median return of 11%, with 67.37% of those years ending in positive territory.



&#8220;In year 1 of a US presidential cycle, the average SPX trend has tended to struggle from mid-January through April, rallied into the summer, and declined into year-end,&#8221; wrote Bank of America analyst Paul Ciana in a note published Monday.



Also Read: <a href="https://www.benzinga.com/24/12/42647650/palantir-vs-lockheed-a-tech-fueled-showdown-in-the-850-billion-defense-market">Palantir Vs. Lockheed: A Tech-Fueled Showdown In The $850 Billion Defense Market</a>



<h3 class="wp-block-heading">The Republican And Q1 Effects</h3>



The median return during Republican first years is -10.11%, and the winning ratio drops to 36.36%, highlighting the increased likelihood of losses.



The early months of a presidential year have also been tough for markets. From inauguration in late January to the end of March, the S&amp;P 500&#8217;s median return is -0.09%, with gains recorded only 50% of the time.



<h3 class="wp-block-heading">Trump 2017: An Exception to the Rule</h3>



President-elect Donald Trump's first year in 2017 bucked these historical trends, delivering exceptional market performance.



From his inauguration to the end of March, the S&amp;P 500 gained 4.2%, outperforming historical averages for both first presidential years and Republican presidencies. By year-end, the index had surged 19.40%, marking a robust first-year performance.



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Metric</th><th>Normal Year (1928-2023)</th><th>First Presidential Year</th><th>First Republican Presidential Year</th><th>Trump 2017</th></tr></thead><tbody><tr><td>Median Annual Return</td><td>+11.00%</td><td>+8.44%</td><td>-10.11%</td><td>+19.40%</td></tr><tr><td>Winning Annual Trades (%)</td><td>67.37%</td><td>58.33%</td><td>36.36%</td><td></td></tr><tr><td>Max Annual Gain</td><td>+48.02%</td><td>+48.02%</td><td>+30.65%</td><td>+19.40%</td></tr><tr><td>Max Annual Loss</td><td>-48.77%</td><td>-37.68%</td><td>-18.09%</td><td>0.00%</td></tr><tr><td>Median Return (Inauguration-end Q1)</td><td>+1.68%</td><td>-4.99%</td><td>+0.08%</td><td>+4.20%</td></tr><tr><td>Winning trades (Inauguration-end Q1)</td><td>63.54%</td><td>50%</td><td>54.55%</td><td></td></tr></tbody></table><figcaption class="wp-element-caption">Data: Seasonax</figcaption></figure>



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<li><a href="https://www.benzinga.com/24/12/42649864/tariffs-or-more-energy-analyst-warns-of-high-costs-limited-capacity-if-europe-bows-to-trumps-lng-push">Tariffs Or More Energy: Analyst Warns Of High Costs, Limited Capacity If Europe Bows To Trump&#8217;s LNG Push</a></li>
</ul>



Photo: Shutterstock

Analyst Ratings

History Suggests S&P 500 Could Struggle In 2025, But There's Reason For Optimism

Tech stocks began Christmas week with positive momentum, as the Nasdaq 100 rose 0.4% on Monday, building on a 0.7% gain from Friday. The index has now recovered nearly half of the losses sustained following the <a href="https://www.benzinga.com/topic/federal-reserve">Federal Reserve's recent policy meeting.</a>



Semiconductors stood out as the top-performing sector:



<ul>
<li>iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) jumping 2.3%.</li>



<li>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), up 4.7%</li>



<li>Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), which surged 4.9%.</li>
</ul>



Meanwhile, other major indices showed minimal movement in what appeared to be a session marked by low trading volumes.



Consumer staples emerged as the weakest sector, with notable declines in major retailers. Dollar General Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DG#NYSE">DG</a>) dropped 3.3%, while Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) shed 2.8%. 



In economic news, U.S. consumer confidence fell sharply in December, with the index dropping 8.1 points to 104.7 amid worsening expectations in future economic conditions.



The U.S. dollar index edged higher, mirroring a further surge in Treasury yields. The yield on the 10-year Treasury note rose 4 basis points to 4.57%, approaching its highest closing level since late May.



In commodities, gold slipped 0.4%, set to break a two-session winning streak, while oil prices declined 1%.



In the cryptocurrency market, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell 1.7% to around $93,000, eyeing its fifth loss in the past six sessions.



Shares of MicroStrategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) tumbled over 4% in their first trading session after the company's inclusion in the Nasdaq 100 index.



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



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day %chg</td></tr><tr><td>Nasdaq 100</td><td>21,373.71</td><td>0.4%</td></tr><tr><td>S&amp;P 500</td><td>5,932.42</td><td>0.0%</td></tr><tr><td>Russell 2000</td><td>2,232.71</td><td>-0.4%</td></tr><tr><td>Dow Jones</td><td>42,620.75</td><td>-0.5%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 12:30 p.m. ET </figcaption></figure>



According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent122324&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>) edged 0.1% higher to $592.12.</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 0.4% to $427.22.</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>) rose 0.4% to $520.67.</li>



<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) eased 0.4% to $221.06.</li>



<li>The&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up by 0.5%; the&nbsp;Consumer Staples Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) lagged, down 2%.</li>
</ul>



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



<ul>
<li>Novo Nordisk A/S (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>) rose 3% following a 17.8% drop on Friday. The U.S. Food and Drug Administration announced on Monday that it has approved Hikma Pharmaceuticals&#8217; generic version of Novo Nordisk&#8217;s Victoza for treating type 2 diabetes.</li>



<li>New Fortress Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFE#NASDAQ">NFE</a>) rallied 18%, after Stifel raised the stock price target from $16 to $18. </li>



<li>Carnival Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>) fell over 4% following a 6.4% post-earning rally Friday. </li>
</ul>



Read now: 



<ul>
<li><a href="https://www.benzinga.com/24/12/42653753/history-may-hint-at-sp-500-struggles-in-2025-yet-there-is-also-hope-heres-why">History Suggests S&amp;P 500 Could Struggle In 2025, But There&#8217;s Reason For Optimism</a></li>
</ul>



Image: Shutterstock

XLRE

Tech Stocks Eye Christmas Gains, Microstrategy Tumbles As Bitcoin Dips To $93,000: What's Driving Markets Monday?

President-elect Donald Trump has reignited trans-Atlantic trade tensions, demanding the European Union buy more U.S. oil and liquefied natural gas (LNG) <a href="https://www.benzinga.com/topic/tariffs">or face sweeping tariffs. </a>



The U.S. is already Europe's largest energy supplier. Questions remain over whether Trump&#8217;s ultimatum will escalate into a broader trade war.



"I told the European Union that they must make up their tremendous deficit with the United States by the large-scale purchase of our oil and gas. Otherwise, it is TARIFFS all the way!!!" Trump wrote Friday on his social media platform, Truth Social.



U.S. natural gas prices — tracked by the United States Natural Gas Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNG#NYSE">UNG</a>) — has risen by 25% since Trump&#8217;s election victory in November.



<h3 class="wp-block-heading">US LNG: A Major Player In Europe's Energy Crisis</h3>



The U.S. delivered 47 million tons (mt) of LNG over the past year (December 2023–November 2024), accounting for 51% of total U.S. LNG exports and 46% of Europe's LNG imports.



This surge in trade reflects a sharp pivot in Europe's energy strategy following the 2022 energy crisis sparked by Russia's invasion of Ukraine and subsequent sanctions on Moscow.



Goldman Sachs data shows that U.S. LNG deliveries to Europe rose 197% during the crisis, while shipments to non-European destinations fell by 41%.



According to Samantha Dart, commodity analyst at Goldman Sachs, this reallocation was made possible by the flexible destination clauses in U.S. LNG contracts, which allow buyers to redirect cargoes to the most lucrative markets.



"The US is not only Europe's largest LNG supplier but also the primary source of future LNG import growth for the region," Dart said, citing long-term contracts signed since the start of the Ukraine war. 



These agreements amount to nearly 16 million tons per annum (mtpa), making the US the top global supplier in terms of contracted European LNG volumes.



<h3 class="wp-block-heading">Can US LNG Fully Replace Russian Gas?</h3>



Theoretically, U.S. LNG could replace Russia's 17 mt of annual LNG exports to Europe, according to Goldman Sachs.



However, Dart indicating that such a shift would likely come with higher costs for European buyers.



"The reallocation of US LNG cargoes to Europe could lead to higher freight costs and elevated European import prices to motivate the rerouting of shipments originally destined for other regions," Dart said. 



She added that such a move would have "little to no impact" on total U.S. LNG export volumes, given that US liquefaction capacity is already operating at its limit.



Goldman Sachs also highlighted that expanding U.S. LNG export capacity would take time, with new liquefaction facilities unlikely to come online before 2027 or 2028.



This timeline significantly limits the potential for a near-term increase in U.S. LNG exports to meet Europe's energy needs.



Yet, Europe's climate agenda may limit its willingness to commit to additional long-term LNG deals. "Europe's decarbonization goals might limit European companies' appetite for long-term commitments to grow natural gas use," Dart said. 



<h3 class="wp-block-heading">Tariffs As A Trump Negotiation Strategy</h3>



Trump's renewed focus on tariffs aligns with his broader economic agenda. During his first term, he used tariffs to push for concessions from trading partners, targeting allies like Canada, Mexico, and South Korea, as well as adversaries like China.



For example, during the 2018-2019 trade war with China, Beijing retaliated with LNG tariffs, causing US exports to collapse. It wasn't until 2020's Phase 1 trade deal that China resumed buying US LNG, signing long-term contracts that have since helped fund new US liquefaction projects.



Similar dynamics could play out with Europe if Trump's tariffs escalate. But unlike China, Europe may struggle to justify long-term LNG deals given its climate goals and reliance on diverse energy suppliers.



Read now: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42603073/natural-gas-nears-2-year-highs-inflation-fears-mount-as-utility-costs-climb-3-energy-stocks-rise">Natural Gas Nears 2-Year Highs, Inflation Fears Mount As Utility Costs Climb</a></li>
</ul>



Image: Shutterstock

Eurozone

Commodities

Tariffs Or More Energy: Analyst Warns Of High Costs, Limited Capacity If Europe Bows To Trump's LNG Push

Battle lines are drawn in <a href="https://www.benzinga.com/topic/defense">the defense sector</a>. On one side, Palantir Technologies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) riding high on a meteoric stock surge of over 350% this year. On the other, defense titan Lockheed Martin Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>), grappling with sluggish stock performance and stiff competition from a rising tech consortium.



<h2 class="wp-block-heading">The Disruptor: Palantir</h2>



Palantir, alongside Anduril Industries, is leading <a href="https://www.benzinga.com//node/42640010">a groundbreaking coalition</a> with Elon Musk&#8216;s SpaceX and OpenAI to revolutionize the $850 billion U.S. defense market. The goal? Outpace traditional contractors by integrating AI-powered solutions and autonomous systems. 



Palantir's AI Platform already works seamlessly with Anduril&#8217;s Lattice software, signaling a shift toward modern, agile defense technologies.



<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent122324&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="630" height="493" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/23064119/Screenshot-2024-12-23-at-5.04.06-PM.png" alt="" class="wp-image-703970" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/23064119/Screenshot-2024-12-23-at-5.04.06-PM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/23064119/Screenshot-2024-12-23-at-5.04.06-PM-300x235.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></a></figure>



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Technically, PLTR stock is on a tear. Its share price of $80.55 is comfortably above the eight, 20 and 50-day simple moving averages (SMAs), signaling strong bullish momentum. However, with a relative strength index (RSI) of 70.81, it's entering overbought territory—a red flag for cautious investors.



Read Also: <a href="https://www.benzinga.com/trading-ideas/technicals/24/12/42620067/palantir-defies-gravity-army-deal-nasdaq-100-spotlight-fuel-rally">Palantir Defies Gravity: Army Deal, Nasdaq 100 Spotlight Fuel Rally</a>



<h2 class="wp-block-heading">The Titan: Lockheed Martin</h2>



Meanwhile, Lockheed is feeling the heat. 



<figure class="wp-block-image size-full"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent122324&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="630" height="493" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/23064219/Screenshot-2024-12-23-at-5.04.17-PM.png" alt="" class="wp-image-703971" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/23064219/Screenshot-2024-12-23-at-5.04.17-PM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/23064219/Screenshot-2024-12-23-at-5.04.17-PM-300x235.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></a></figure>



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The defense giant's stock, at $489.02, is below key moving averages, including its 200-day SMA of $510.22, indicating bearish sentiment. A relative strength index (RSI) of 29.59 suggests the stock is oversold, leaving a sliver of hope for a bounce-back.



Despite its legacy status and deep-rooted Pentagon ties, Lockheed faces mounting pressure to adapt as rivals like Palantir challenge its dominance with innovative, cost-efficient technologies.



<h2 class="wp-block-heading">The Verdict</h2>



Palantir's agility and tech-first approach make it a compelling contender in a sector ripe for disruption. Lockheed, however, isn't out of the fight—its oversold status might attract value-driven investors betting on a rebound.



As the defense industry evolves, this tech-versus-tradition showdown is one stock battle investors can't afford to ignore. 



The question remains: Can Lockheed innovate fast enough to fend off Palantir's charge, or is this the dawn of a new era?



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Long Ideas

Technicals

Palantir Vs. Lockheed: A Tech-Fueled Showdown In The $850 Billion Defense Market

The Biden administration has launched a trade investigation into Chinese-produced &#8220;legacy&#8221; semiconductors. This action, announced on Monday, could pave the way for higher U.S. tariffs on these essential components used in numerous consumer products.



What Happened: The &#8220;Section 301&#8221; investigation is slated to transition to the incoming administration of President-elect Donald Trump for completion. This could provide Trump with a chance to enforce the hefty 60% tariffs he has previously threatened on Chinese imports, Reuters reported on Monday.



Currently, a 50% U.S. tariff on Chinese semiconductors is set to begin on Jan. 1. The U.S. has also intensified export restrictions on advanced AI and memory chips to China, alongside increasing tariffs on other Chinese goods.



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The U.S. Trade Representative&#8217;s office, led by Katherine Tai, explained that the probe seeks to shield market-driven chip producers from China&#8217;s state-driven expansion. Tai highlighted evidence of China&#8217;s attempts to dominate the semiconductor industry, similar to its strategies in other sectors.



The Biden administration will start&nbsp;accepting public comments on the&nbsp;probe on January 6, with a public hearing scheduled for March. The investigation will also evaluate the impact of these chips on critical industries, including defense and automotive sectors.



Why It Matters: This latest probe is part of a broader strategy by the Biden administration to curb China&#8217;s influence in the semiconductor industry. Earlier this month, the administration <a href="https://www.benzinga.com/government/regulations/24/12/42265847/biden-targets-china-with-new-chip-restrictions-nvidia-slides">implemented its third crackdown</a> on China&#8217;s semiconductor sector within three years, citing national security concerns. This initiative imposed export restrictions on 140 Chinese entities, including chip equipment manufacturers such as Naura Technology Group, targeting advanced memory chips and chipmaking tools. As a result, Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) saw its stock trade lower due to potential impacts on its sales in China.



In response, China swiftly retaliated by tightening <a href="https://www.benzinga.com/news/global/24/12/42303132/china-retaliates-against-us-chip-sanctions-tightens-mineral-exports">controls on critical minerals</a> used in chip manufacturing, such as gallium, germanium, and antimony. These materials are crucial for advanced electronics and defense applications. The Chinese Ministry of Commerce justified these measures as necessary for national security, highlighting the escalating tensions between the two nations.



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



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Global

Biden Administration Initiates Trade Probe On Chinese 'Legacy' Chips

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