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The Dow Jones Industrial Average closed lower for the ninth consecutive session, marking its longest losing streak since 1978, as investors await the Federal Open Market Committee's interest rate decision. Despite a mixed economic outlook, a rate cut is expected, with a 95.4% probability of a 25 basis point reduction. Apple and Tesla stocks are on the rise, with Apple reclaiming its title as the world's largest company and Tesla experiencing significant gains post-election, driven by optimistic projections for future growth.
Investors are concerned that Trump's potential trade tariffs could exacerbate inflation, as retail sales rose 0.7% in November. The Dow Jones is on track for its longest losing streak since the 1970s, while Nvidia faces challenges with thermal issues in its chips, impacting its stock. Tesla continues to rise, with analysts projecting a bullish outlook for 2025.
The S&P 500 and Nasdaq Composite reached new highs, while the Dow faced its eighth consecutive loss as investors await the Federal Open Market Committee's interest rate decision. Despite a positive trend in new highs, breadth data indicates underlying market weakness, with more decliners than advancers. Nvidia's stock correction continues, raising concerns about future sales, yet analysts remain optimistic about tech stocks' growth driven by the AI Revolution.
Three tech giants—Nvidia, Microsoft, and Apple—are poised to join the $4 trillion market cap club, driven by the explosive growth of artificial intelligence. Nvidia leads the data center GPU market, while Microsoft capitalizes on AI tools and cloud services. Apple's upcoming iPhone 16, featuring generative AI capabilities, could spark a significant sales surge, positioning it as a likely frontrunner for this milestone.
Palantir Technologies has seen its stock surge 1,090% since early last year, driven by its advancements in artificial intelligence and recent inclusion in the Nasdaq-100. Despite concerns over its high valuation, analysts remain optimistic about its growth potential, with one projecting it could rival Oracle's market cap, suggesting a possible 188% upside. The company’s revenue and customer base are expanding rapidly, indicating strong demand for its AI solutions.
Wall Street anticipates a surge in mergers and acquisitions under a potential second Trump administration, driven by a more favorable regulatory environment and recent interest rate cuts. Analysts predict a 20% increase in M&A volume in 2025, particularly in technology, healthcare, and consumer staples sectors, as mid-cap companies become attractive targets for acquirers seeking growth and value.
UBS analyst Joseph Spak has raised Tesla's price target to $226 while maintaining a 'Sell' rating, citing concerns over the speculative nature of its AI initiatives, which he believes inflate the market cap by nearly $1 trillion. He estimates that Tesla's auto and energy divisions contribute about $52 per share, with AI-related optimism accounting for the rest. In contrast, Wedbush's Dan Ives views Tesla as undervalued in the AI sector, while Morgan Stanley reaffirms a 'Buy' rating, highlighting its leading self-driving technology.
UBS analyst Joseph Spak has raised Tesla's price target to $226 from $197 while maintaining a 'Sell' rating, citing concerns over the speculative nature of its AI initiatives, which he believes inflate the market cap by nearly $1 trillion. He estimates that Tesla's auto and energy divisions contribute about $52 per share, with the rest driven by AI optimism. In contrast, Dan Ives from Wedbush Securities views Tesla as undervalued in the AI sector, highlighting its Full Self-Driving technology as a significant opportunity, while Morgan Stanley reaffirms a 'Buy' rating, praising Tesla's self-driving capabilities and responsiveness to pro-charging policies in the U.S.
Tesla's market cap surged past $1 trillion following an 8% stock rally after Donald Trump's election win, reflecting investor optimism about potential benefits for the company under a Trump administration. CEO Elon Musk, a significant Trump supporter, anticipates 20% to 30% vehicle growth next year, driven by lower-cost models and advancements in autonomy. Tesla reported third-quarter revenue of $25.18 billion and net income of $2.17 billion, while analysts suggest a less regulated environment could enhance Tesla's competitive edge against cheaper Chinese EVs.
Analyst Dan Ives predicts that Tesla's market capitalization could soar to $1 trillion if Donald Trump wins the upcoming election. This projection highlights the potential impact of political outcomes on the electric vehicle manufacturer's financial future.
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