US Stock Market Indexes Close Lower, Tesla and Crypto-Related Stocks Retreat

US Stock Market Indexes Close Lower, Tesla and Crypto-Related Stocks RetreatUS stock indexes closed lower on Tuesday, with the Dow Jones Industrial Average falling 0.86%, the S&P 500 index down 0

US Stock Market Indexes Close Lower, Tesla and Crypto-Related Stocks Retreat

US stock indexes closed lower on Tuesday, with the Dow Jones Industrial Average falling 0.86%, the S&P 500 index down 0.29%, and the Nasdaq Composite falling 0.09%. Popular Chinese ADRs declined broadly, with the Nasdaq Golden Dragon China Index closing 4.45% lower. XPeng Motors fell more than 10%, Nio dropped over 9%, JD.com, Bilibili, and Li Auto all declined more than 7%, iQiyi fell over 4%, Baidu dropped nearly 4%, Alibaba and New Oriental declined more than 3%.

Trump Trade Cools, Tesla and Crypto-Related Stocks Pull Back

The "Trump Trade" cooled, leading to a pullback in Tesla and cryptocurrency-related stocks. On Monday, Trump announced he will be running for president in 2024, contrary to prior market expectations that he might not. This return to the campaign trail could increase market uncertainty, prompting some investors to lock in profits.

Major European Indices Close Lower

Major European indices closed lower, with Germany's DAX30 index down 2.13%, the UK's FTSE 100 index down 1.22%, France's CAC40 index down 2.69%, and the Euro Stoxx 50 index down 2.25%. In a speech on Tuesday, European Central Bank President Christine Lagarde stated that the European economy is slowing and expects inflation to fall below 2% next year. Lagarde's remarks suggest the ECB might slow its pace of interest rate hikes in the coming months, raising concerns about the economic outlook.

Commodity Market: International Crude Oil Futures Settle Slightly Higher

COMEX gold futures fell 0.53% to $2604 per ounce, while COMEX silver futures rose 0.73% to $30.83 per ounce. International crude oil futures settled slightly higher, with WTI December crude oil futures gaining $0.08, or 0.12%, to $68.12 per barrel. Brent January crude oil futures closed $0.05, or 0.07%, higher at $71.89 per barrel.

Bitcoin Briefly Hits $90,000, Marking a New All-Time High

Bitcoin prices briefly touched $90,000, setting a new all-time high. Numerous investors anticipate the price will continue to reach a new milestone of $100,000 later this year.

Market News

• Yemeni Houthis Claim Attack on US Navy's USS Abraham Lincoln

On Tuesday evening, Yemeni Houthi military spokesman Yahya Saree stated that Houthi forces had attacked the US Navy's USS Abraham Lincoln aircraft carrier with missiles and drones, successfully thwarting its air strikes against Yemen. Additionally, the Houthis claim to have targeted two other US destroyers in the Red Sea. The US has yet to respond.

• US Prosecutors Seek Forfeiture of FTX Founder's Crypto

According to news reports, SBF, the founder of FTX, was convicted of fraud a year ago. In a document filed with a New York court on Tuesday, US prosecutors filed a lawsuit seeking the forfeiture of SBF's cryptocurrency. The cryptocurrency is stored in an account containing assets like Solana and Ripple, totaling $8.6 million as of December 12, 2023. The value has increased to $18.5 million over the past eleven months, primarily due to the significant rise in the price of Solana.

• Waymo Opens Driverless Taxi Service to All Users in Los Angeles

On Tuesday, Alphabet's self-driving taxi (Robotaxi) company Waymo announced that its taxi service, Waymo One, is now open to all users in Los Angeles. This marks the company's largest expansion to date, signifying a rapid growth stage for its business. The company reports that nearly 300,000 people have joined its reservation list since the service began rolling out to the public in Los Angeles this past March, showcasing strong demand.

• Apple to Launch AI-Powered Smart Home Device as Early as March

According to those familiar with the matter, Apple is set to release an AI-powered smart home device as early as March. The device will offer FaceTime, Siri, and Apple Intelligence functionalities. It will connect to cameras, doorbells, and run a range of Apple's apps. Apple aims to compete with Amazon and Google in the smart home market.

• Millennium's Expensive Star Fund Manager Leaves After Less Than a Year

John Curtice, one of Millennium Management's most expensive recent hires, has left the firm. He had joined Izzy Englander's hedge fund company less than a year ago. Curtice joined this year from Millennium's rival ExodusPoint Capital Management. According to sources familiar with the matter, Curtice's risk limits surpassed Millennium's guidelines, leading to numerous discussions between the company and Curtice. As Curtice's performance declined from its peak, Millennium recently reduced his trading capital from $2 billion to $1.5 billion. Sources added that Curtice incurred a low single-digit net loss since joining the company, but his trading did not reach the level to trigger stop-loss measures.

• Wall Street Bonuses Set to Rise for the First Time in Three Years

Compensation consulting firm Johnson Associates released a recent report stating that Wall Street bonuses are expected to rise across the board this year, marking the first overall increase since 2021. The anticipated growth encompasses investment bankers, traders, and professionals in asset management and wealth management, with their year-end bonuses potentially experiencing double-digit increases. Bankers assisting companies with debt sales are especially likely to see significant bonus growth, reaching as high as 35%, driven by increased trading activity and a rebound in capital markets.

• Head of Saudi Arabia's NEOM Project Abruptly Resigns

On Tuesday, the CEO of Saudi Arabia's NEOM megacity suddenly announced his resignation, prompting significant attention as a major development in the world's largest construction project. While no reason was given, rumors circulated that Nadhmi Al-Nasr, who had served as NEOM CEO since 2018, had recently departed. On Tuesday, NEOM officially confirmed the departure and named Aiman Al-Mudaifer as the company's acting CEO. Al-Mudaifer previously served as the head of the investment division for the Public Investment Fund (PIF) and is a board member for several prominent Saudi companies.