To The Moon

Stock markets rebound after recent weakness; the US dollar falls

🇺🇸 S&P 500: +1.26% 📈

🇺🇸 Nasdaq: +1.77% 📈

🇪🇺 Stoxx 600: -0.49% 📉

🇯🇵 Nikkei 225: Closed

🇭🇰 Hang Seng Index: +0.7% 📈

🇨🇳 CSI 300: -1.2% 📉

🇸🇬 Straits Times Index: +0.03% 📈

The US stock market rose, with the S&P 500 and Nasdaq gaining 1.6% and 1.8%, respectively. This followed a surprise drop in weekly jobless claims, bringing optimism that the Federal Reserve may take a more cautious approach to rate cuts.

Chinese stocks were mixed, with the Hang Seng Index rising 0.7% and the CSI 300 Index falling 1.2%. Senior officials from China's National Development and Reform Commission stated on Friday that the country will expand the issuance of ultra-long-term bonds to further stimulate consumer spending.

💡 Upcoming Events 💡

On Monday, data on the S&P Global Index, EU HCOB, Japan's Jibun Bank, and China's Caixin, along with the final services PMI for 2024, will be released.

On Tuesday, the US will release the ISM Services PMI and JOLTS Job Openings, while the EU will publish its core annual inflation rate and unemployment rate.

Japanese consumer confidence data will be released on Wednesday.

On Thursday, the US will release FOMC meeting minutes and initial jobless claims, while the EU will release its annual retail sales.

By the end of the week, the US nonfarm payrolls, unemployment rate, University of Michigan preliminary consumer confidence index.

💡 Things to Know Today 💡

1. Two Federal Reserve officials emphasized on Saturday that the US central bank must continue to work hard to tackle post-pandemic inflation and achieve the 2% inflation target.

Inflation

2. According to Bloomberg, the RMB devaluation broke the level China had been defending throughout December, bringing focus back to its daily reference rate as a measure of Beijing's willingness to support the currency.

RMB

3. Several top global hedge funds ended 2024 with strong double-digit returns by capitalizing on market volatility, central bank policy shifts, and the fiercely competitive US presidential election.

Hedge Funds

4. Nvidia Corp  $NVIDIA Corp(NVDA)$  and Apple Inc's $Apple(AAPL)$  assembly partner, Hon Hai Precision Industry Co, reported sales growth that exceeded expectations last quarter, driven by the continued rapid expansion of AI infrastructure.

Foxconn

5. Brent crude oil prices, after a five-day rally, are hovering around $77 per barrel, pushing futures prices to their highest level in over two months.

Brent crude oil

✅ Key Takeaways:

Wall Street consensus is that the US economic exceptionalism will continue into 2025.

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