This Week in the Markets: Wall Street Bounces Back Without AI Boost, Dollar Reigns Supreme, and Bitcoin Surges as General Motors (NYSE: GM) Stays in Focus
Despite widespread anticipation that NVIDIA Corp. NVDA‘s quarterly results would dictate Wall Street’s year-end trajectory, the stock market delivered a robust weekly rebound — even in the absence of its AI darling.
While the semiconductor titan beat analyst expectations on both earnings and revenue for the third quarter, Nvidia’s stock remained flat for the week.
Alphabet Inc. GOOGLGOOG, the parent company of Google, faced sharp turbulence. Shares tumbled after the U.S. Department of Justice called for the divestiture of Chrome in a bid to curb Google’s dominance in search and digital advertising.
The sell-off wiped out over $120 billion in market capitalization on Thursday alone.
A recent Benzinga poll indicates 64% of respondents oppose breaking up Alphabet, with YouTube viewed as the company’s most valuable asset.
On the economic front, U.S. private sector activity expanded significantly in November, as reflected in S&P Global’s Purchasing Managers’ Index surveys. The services sector, in particular, surged at its fastest pace since March 2022, while price pressures continued to recede, creating less headwinds for the Federal Reserve.
Bitcoin’s BTC/USD rally shows no signs of cooling, with the cryptocurrency notching its fourth consecutive week of gains and hovering around the historic $100,000 threshold.
The U.S. dollar also maintained its upward momentum, rising for the eighth straight week to reach two-year highs. This latest rally, however, stemmed largely from external turmoil, as escalating geopolitical tensions between Russia and Ukraine, coupled with worsening economic momentum in Europe, triggered sharp weekly sell-offs in the euro and the British pound.
President-elect Donald Trump advocates for increased fossil fuel production with his “drill, baby, drill” policy. In contrast, Elon Musk, co-leader of the proposed Department of Government Efficiency (DOGE), envisions a future dominated by solar energy. UBS analysts recommend investors consider renewable energy stocks following their election-induced market dip.
Cathie Wood of Ark Invest anticipates the Trump administration will provide regulatory clarity for Bitcoin and other digital assets, potentially incorporating them into the Treasury’s strategic reserve.
General Motors GM is reportedly preparing to enter Formula One in 2026, potentially partnering with Andretti Autosport. This move would mark GM’s first foray into F1, aligning with its global motorsport expansion strategy.
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