• What drove Bitcoin to hit $100K?
• Why is Powell cautious about the next rate cut?
• What’s Driving Amazon’s AI Competition with Nvidia?
MARKET MOVEMENTS
Dow Jones
S&P 500
Nasdaq
45,039.21(+0.06%)
6,088.20(+0.03%)
19,752.75(+0.09%)
Opening price as of 12/05/2024 compared to last close
IN THE HEADLINES
Bitcoin Hits $100K Amid Trump’s Crypto-Friendly SEC Pick
Bitcoin topped $100,000 for the first time after President-elect Trump nominated crypto advocate Paul Atkins as SEC chair, sparking hopes for looser regulations. The market has added $1.3 trillion since Trump's election, with Bitcoin leading the surge, despite mixed performances in smaller tokens. Critics warn of potential risks, but investors view this milestone as a step toward mainstream adoption. Read more
Powell Signals Caution as Fed Considers Next Rate Cut
Fed Chair Jerome Powell noted that the U.S. economy is stronger than expected, with resilient job growth and slightly higher inflation, suggesting a cautious approach to future rate cuts. Speaking ahead of the Dec. 17–18 policy meeting, he emphasized the Fed’s flexibility in finding a neutral stance while awaiting fresh data on labor and inflation. While some officials support another quarter-point cut to 4.25%-4.50%, Powell’s comments align with a more measured stance, balancing progress on inflation with continued economic strength and market uncertainty. Read more
Amazon Takes on Nvidia in AI Race, Both Stocks Rally
Amazon launched its Trainium2 AI chips, offering 30-40% better price performance than Nvidia GPUs, and announced plans for Trainium3. The company is investing $100 billion in AI data centers and partnering with Anthropic for a massive "UltraCluster" project. Despite competition, Amazon expanded its collaboration with Nvidia, adding advanced GPUs to AWS. Both companies saw their stocks surge as investors bet on their success in the AI-driven cloud computing market. Read more
TradeUP TIDBITS
How to Protect Your Portfolio Against Risks Tied to President-Elect Trump’s Tariff Agenda
To protect your investment portfolio from risks related to President-elect Trump's tariff proposals, it’s important to diversify into sectors less impacted by international trade. Domestic-focused industries or commodities often perform better during trade tensions. Additionally, investors can hedge risks by focusing on high-quality companies and including assets like bonds or safe-haven investments to buffer against potential volatility from tariff-related uncertainties.
Hedging is a strategy used to reduce investment risk by taking an opposing position in a related asset. It helps limit potential losses from adverse price movements. Common techniques include options, futures contracts, and diversification, allowing investors to balance risks and protect against market fluctuations.
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