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U.S. stock futures dipped as a House Republican spending deal to prevent a government shutdown faltered, with significant opposition from within the party. Meanwhile, short selling activity has surged among major automakers, with Rivian shares plummeting over 43% in 2024. In extended trading, FedEx, Nike, and Mission Produce reported better-than-expected earnings, boosting their stock prices.
The stock market is facing challenges following a sell-off by the Federal Reserve, with investors now awaiting crucial inflation data. To navigate these turbulent times effectively, access to professional market trend analysis and stock picks is essential for making informed decisions on buying, selling, or holding investments.
The Dow Jones Industrial Average rose 15 points, breaking a 10-day losing streak, its worst in 50 years, while the S&P 500 and Nasdaq dipped amid a mixed market reaction following the Federal Reserve's reduced rate cut expectations. The Fed's outlook shifted from four to two cuts next year, impacting bond yields and cryptocurrency, with Bitcoin falling nearly 5% to $96,178. Analysts suggest stronger economic growth may challenge the Fed's projections, as markets now see a 66% chance of one or two more rate cuts next year.
Cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, experienced significant declines following the Federal Reserve's interest rate cut, which raised concerns about inflation and unemployment. Bitcoin fell 6.2% to below $100,000, while Ethereum and Dogecoin dropped 9.7% and 16.8%, respectively. The market's reaction reflects a broader trend where cryptocurrencies behave like traditional risk assets, with speculation and FOMO driving recent valuations.
UBS warns that the Federal Reserve is the only barrier preventing investors from facing a significant stock market bubble. The central bank's actions are crucial in maintaining market stability amid rising concerns over inflated asset prices.
UBS analysts warn that a looser monetary policy from the Federal Reserve could trigger a stock market bubble, with six of the seven necessary conditions already in place. They predict a 35% chance of a bubble forming by 2025, contingent on further interest rate cuts. To hedge against this risk, UBS recommends investing in reasonably priced stocks in Gen AI and electrification, including TSMC, Meta, National Grid, PG&E, and Vistra.
Bitcoin has dropped below $100,000, currently priced at $97,000 after a 6.4% decline, amid market reactions to Fed Chairman Jerome Powell's cautious remarks on interest rates and a looming government shutdown. Major altcoins like Ethereum and Solana also experienced significant losses, contributing to a 9% decrease in the total crypto market cap to $3.63 trillion. With only two days left for Congress to pass a spending bill, uncertainty looms as President-elect Donald Trump rejects a bipartisan funding measure, potentially leading to a government shutdown on December 21.
Germany's Free Democratic Party (FDP) is prioritizing Bitcoin and crypto policy ahead of the February parliamentary elections, advocating for a strategic Bitcoin reserve within the European Central Bank and the German Bundesbank. Their election manifesto emphasizes modernizing financial regulations to support FinTech innovations while ensuring competitiveness with European standards. The FDP also calls for a digital euro that respects user privacy and remains voluntary, reflecting a balanced approach to embracing digital assets alongside traditional monetary practices.
Wall Street rebounded on Thursday following its worst session in over three months, driven by strong U.S. economic growth data. Market participants found optimism after reflecting on the Federal Reserve's hawkish stance regarding interest rates.
Dogecoin (DOGE) has experienced significant volatility, with an 18.35% drop in value amid broader market uncertainty influenced by Federal Reserve Chair Jerome Powell's remarks. The cryptocurrency's price fluctuations are driven by external events, community sentiment, and its unlimited supply, raising concerns about its long-term viability. As Dogecoin navigates these challenges, its future remains uncertain, with investors closely monitoring its recovery potential.

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