The stock market is currently experiencing mixed trends, with the European and Asian markets showing signs of growth while the US futures are trading slightly lower. In recent news, the founder of FTX crypto exchange, Sam Bankman-Fried, was sentenced to 25 years in prison for fraud and conspiracy. Meanwhile, Amazon has invested $2.75 billion in AI company Entropic, while gold prices continue to rise and the US economy grew by 3.4% in the last quarter of 2023.
In other news, Micro-Strategy’s stock plummeted following a report by Kerrisdale Capital hedge fund which sold its shares short and bought Bitcoin. The report stated that the stock price increase is not justified as Micro-Strategy’s business model is based on buying and holding Bitcoin. On a positive note, Xiaomi’s shares surged after launching its first electric car at an aggressive price. Luxury furniture chain RH’s shares also soared after updating its forecast for increased demand in 2024.
The commodity market is showing concerns over rising prices impacting traders and chocolate manufacturers. Bank of America estimates a 15% decline in the Euro Stoxx 600 and predicts a shift from cyclical to defensive stocks. Gold prices continue to rise while bonds and oil prices are trading as well. Magdalena Tao predicts a weak yen against the dollar with potential interest rate hikes in Japan. Oppenheimer’s analyst expects the US stock market to continue its positive trend into 2024 and possibly peak in 2025. Overall, it seems that there are both positive and negative factors affecting the stock market at this time, but it will be interesting to see how it unfolds in the coming months.
