Trump Questions USMCA Renewal as Trade Talks Continue 
Oil Prices Drop as U.S.-Iran Peace Deal Eases Supply Concerns 
German Industry Employment Falls to Lowest Level in a Decade 
Trump Says No Hormuz Strait Tolls During 60-Day Iran Ceasefire 
Gold Prices Rebound on U.S.-Iran Peace Deal Optimism Despite Fed Rate Hike Signals 
Canada, British Columbia Launch $5 Billion Infrastructure Partnership to Boost Housing, Transit, and Healthcare 
Australia Eases Capital Gains Tax Reforms to Support Small Businesses and Startups 
Yen Near 40-Year Lows Despite BOJ Rate Hike, Markets Brace for Possible Intervention 
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
Europe EV Demand Surges as Fuel Prices Rise Amid Iran Conflict 
Asian Currencies Steady as Dollar Holds Firm Ahead of Fed Decision and US-Iran Deal Details 
Trump and Iran Sign Framework Peace Deal in France Amid Ongoing Middle East Tensions 
Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
Oil Prices Slide as U.S.-Iran Deal and Hormuz Reopening Ease Supply Concerns 
Japan Inflation Stays Below BOJ Target Despite Rate Hike and Rising Energy Cost Risks 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
U.S. stocks closed higher on Wednesday, with the Dow Jones Industrial Average and the S&P 500 finishing at record closing highs during a broad-based rally in a holiday-shortened trading session. All three major indexes notched their fifth consecutive day of gains, highlighting continued strength in U.S. equities despite lingering concerns about interest rates and valuations.
Market sentiment has improved in recent sessions, supported in part by a rebound in AI-related stocks after last week’s selloff. That pullback had been driven by worries over elevated valuations and heavy capital expenditures potentially weighing on future profits. Renewed optimism around artificial intelligence, including chatter about new models from major tech players such as OpenAI and Meta, helped lift investor confidence.
Recent economic data also reinforced the view that the U.S. economy remains resilient. New applications for U.S. jobless benefits unexpectedly declined last week, signaling ongoing labor market strength. Meanwhile, investors continue to price in around 50 basis points of Federal Reserve rate cuts next year, although expectations for a January cut remain low, according to CME Group’s FedWatch Tool. Analysts broadly agree that the Fed is unlikely to ease policy again in the near term.
The Dow Jones Industrial Average rose 288.75 points, or 0.60%, to 48,731.16. The S&P 500 gained 22.26 points, or 0.32%, to 6,932.05, while the Nasdaq Composite added 51.46 points, or 0.22%, to 23,613.31. Trading volumes were notably light ahead of the Christmas holiday, with U.S. markets closed on Thursday.
Micron Technology shares climbed nearly 4% to a record close, extending gains after issuing a strong forecast last week. Financial stocks also supported the rally, while energy was the only S&P 500 sector to finish lower. Nike surged after news of insider buying, while Dynavax Technologies jumped sharply following a takeover announcement by Sanofi.
With stocks entering the traditionally strong “Santa Claus rally” period, optimism around AI, potential rate cuts, and economic resilience continues to underpin the bull market, which began in October 2022 and has kept U.S. stock indexes on track for another year of gains.
