On December 26, the first trading day following Christmas, the U.Sstock market experienced lukewarm trading activityThe three major indices closed mixed, with the Dow Jones Industrial Average extending its winning streak to five sessionsAmong the tech giants, only Apple posted gains, edging closer to a market capitalization of $4 trillion.

At the close of trading, the Dow Jones rose 0.07%, marking its fifth consecutive gain at 43,325.80 points; the S&P 500 dipped 0.04% to settle at 6,037.59 points; and the Nasdaq Composite fell 0.05%, closing at 20,020.36 points, effectively ending a three-day uptrend for both indices.

Market bulls were optimistic about the “Santa Claus Rally,” a phenomenon where stocks tend to rise due to holiday sentiment

Historically, year-end typically sees a surge in U.Smarkets; since 1950, average gains for the last five trading days of the year, combined with the first two days of the new year, have reached around 1.3%. Analysts believe that even with the reduced trading volume caused by the holiday season, investor sentiment remains relatively confident.

According to analysts from Miller Tabak, recent weeks have shown that large tech stocks remain the leading force in the market, holding a significant weight in the portfolios of various institutional investorsConsequently, it’s likely that upcoming buying activity will focus primarily on these stocks.

From a policy standpoint, the latest data from the CME's FedWatch tool demonstrates a clear market expectation regarding the Federal Reserve's interest rate trajectory

• The Dollar Index Remains Strong
• A Clear Uptrend for the US Dollar
• U.S. Sets Emission Reduction Goals
• NVIDIA and TSMC Alliance Faces Fracture
• Where Are the Investment Opportunities?

As for January 2024, there is an 87.2% probability that the Fed will maintain the current interest rates, while the likelihood of a 25-basis-point cut sits at merely 12.8%. Moving forward to March, the probability of keeping rates steady remains at 50.6%, while the cumulative chance of a 25-basis-point cut rises to 44.1%, with a smaller possibility of a 50-basis-point reduction at 5.4%.

In the stocks that have garnered attention, Apple saw a modest increase of 0.32%, while Nvidia and Microsoft declined by 0.21% and 0.28%, respectivelyAlphabet’s Class C and Class A shares fell by 0.24% and 0.26%, Amazon dropped 0.87%, Meta Platforms slipped 0.72%, Tesla saw a decline of 1.76%, TSMC dropped 1.56%, and AMD slipped 0.97%.

In a notable development, Nvidia officially launched its mid-range platform, the GB200 NLV4, on December 26. This platform is equipped with Grace CPUs and Blackwell GPUs that work in tandem, featuring two Grace CPUs with a total of 144 cores alongside four Blackwell GPUs, delivering substantial acceleration capabilities for AI and high-performance computing

It supports up to 1.3TB of combined memory for efficient management of vast data setsEach CPU is fitted with six MCIO connectors for high-speed data transmissionAlthough the total power usage of the fully configured server exceeds 6kW, significant improvements have been noted compared to earlier systemsAnalysts suggest that Nvidia's timing for the GB200 NLV4 rollout aims to reshape its product lineup, gradually phasing out the older NVL platform in favor of more advanced NVL4 options.

Turning to Apple, analysts from Wedbush Securities, under the guidance of Dan Ives, have raised their price target for Apple stock from $300 to $325. They exhibit strong optimism for the company’s prospects, forecasting that with the rapid advancements in AI technologies, Apple is on the brink of entering a golden growth phase by 2025. This period is anticipated to usher in an ongoing, AI-driven iPhone upgrade cycle, where consumer demand shifts towards smarter, more personalized iPhones

The upcoming iPhone 16 series, featuring advanced AI capabilities, is expected to be a key catalyst that initiates this “new golden era,” offering significant growth opportunities for Apple.

In the realm of Chinese stocks listed in the U.S., the Nasdaq Golden Dragon China Index saw an increase of 0.42%, while the FTSE China A50 Index declined by 0.42%. Notable stock movements included Alibaba, which rose by 0.68%, while Pinduoduo saw a decline of 0.85%. NetEase marginally increased by 0.10%, Ctrip gained 1.04%, Baidu rose by 0.23%, Li Auto surged by 3.60%, Xpeng saw an increase of 2.08%, and NIO climbed up by 1.30%.

U.STreasury yields experienced slight declines, with the 10-year Treasury yield settling at 4.582%, while the two-year yield, which is more sensitive to rate changes, was recorded at 4.332%.

Across the Atlantic, European equity markets displayed mixed results; the UK’s FTSE 100 index climbed up by 0.42% to 8,137 points

The French CAC 40 index also showed a slight increase of 0.14%, ending at 7,283 points, while the German DAX index dropped by 0.18% to close at 19,849 points.

The U.Sdollar index lingered near a two-year high, eventually closing down by 0.045% at 108.09.

Gold prices have surged, driven by safe-haven demand, with COMEX gold rising by 0.75% to $2,653.3 per ounceSilver also showed volatility, with COMEX silver prices up by 0.6% to $30.41 per ounce.

Crude oil exhibited a V-shaped trend; WTI crude struggled to maintain the $70 mark, ultimately declining by 0.61% to $69.67 per barrelConversely, Brent crude saw a slight increase of 0.39%, settling at $73.29 per barrel.