US stocks slid on Friday as the “Santa Claus rally” hit a major roadblock.
Tech and consumer discretionary sectors led the decline. Even the Magnificent 7 had no holiday cheer, with every member finishing in the red.

⚡ Closing Bell:

• Dow Jones: ⬇️ -0.5% to 43,142.9 — Energy provided slight support.

• S&P 500: ⬇️ -1.1% to 4,327.45 — Consumer discretionary dragged the index lower.

• Nasdaq 100: ⬇️ -1.4% to 14,902.8 — Tesla (-4.94%) and Palantir (-3.66%) led declines.

• Russell 2000: ⬇️ -1.6% to 1,725.22 — Small caps bore the brunt of the sell-off.

Sector Highlights:

• Worst Performers ❌: Consumer Discretionary and Tech — Tesla (-4.94%) and Amazon (-2.1%) dragged down the group.

• Standout ✅: Quantum-Si (+66.74%) soared, though its name is a bit misleading—it’s not a quantum-computing company.

📈 Treasury Yields Surge
The 10-year Treasury yield hit 4.64%, its highest since May, as investors grappled with rising interest rate fears. Higher yields continued to pressure growth stocks across the board.

❗The question now is whether the year will end with more turbulence—or if some calm will return for the final trading days of 2024.

#TRUTH:
❗❗❗ “I have one life and one chance to make it count for something. I’m free to choose that something. My faith demands that I do whatever I can, wherever I can, whenever I can, for as long as I can with whatever I have to try to make a difference..”

~ Jimmy Carter, the 39th President of the United States.

Can They Keep Up?

After dominating December, the “BATMMAAN” stocks—Broadcom, Apple, Tesla, Microsoft, Meta, Amazon, Alphabet, and Nvidia—are rewriting market dynamics. Together, they’ve added $1.9 trillion in market cap since Trump’s election, accounting for 85% of the S&P 500’s gains during that period.

Megacaps Lead the Charge
Initially dubbed the Magnificent Seven, the group expanded with Broadcom’s rise past the $1 trillion valuation mark. While December saw the broader market struggle, these eight giants rallied, with the Nasdaq Composite gaining +2.5% for the month. Meanwhile, the S&P 500 is poised for a rare back-to-back +25% total return for 2024, thanks to their outsized influence.

Cracks in the Foundation?
Despite their dominance, some warn of risks heading into 2025:

• Valuation Concerns: Names like Apple and Tesla face slower growth compared to Nvidia and Broadcom, whose AI-driven earnings have dazzled investors.

• Concentration Worries: The S&P 500’s diversification is shrinking, with megacaps like Apple (7.2%) and Nvidia (6.3%) commanding unprecedented weight in the index.

Will AI Justify the Hype?
The BATMMAAN stocks have ridden the AI wave, but skeptics question whether the trend will deliver enough tangible growth. As Burns McKinney of NFJ Investment Group puts it: “Investors will need to see these AI bets ‘show me’ real results in 2025.”

What’s Next?
Even if the AI rally falters, a supportive policy backdrop, including Trump’s proposed tax cuts and deregulation, could keep the broader market afloat. But with rising 10-year Treasury yields and stretched valuations, the BATMMAAN stocks may face a tougher climb ahead.

For now, these market superheroes remain at the center of Wall Street’s story—but 2025 may test whether their capes are made for flying or just for show.

Price Tag by Zip Code 📍

A bitcoin value might be universal, but where you buy it can make a big difference. This week, the “kimchi premium”—the price gap between South Korean and global bitcoin exchanges—spiked to a four-month high of 5%, as South Korean traders rushed to buy bitcoin amid political uncertainty.

On Friday, Bitcoin was trading at just over $94,000, while South Korea’s Upbit exchange listed it at 142,091,000 won (~$96,425).

5%

What Exactly Is the Kimchi Premium?
The kimchi premium reflects the price difference of Bitcoin on South Korean exchanges compared to international ones, such as those based in the U.S. This phenomenon is driven by:

• Strong Local Demand: South Korea’s tech-savvy, crypto-enthusiastic population often fuels higher buying activity.

• Regulatory Hurdles: Strict capital controls make arbitrage—buying low on one exchange and selling high on another—nearly impossible.

• Economic and Political Factors: Events like elections or policy changes can amplify local interest and push prices up.

❗Reminder
It’s a stark reminder that even in the global world of crypto, local markets can still shape prices.

A Business with Purpose 😇

OpenAI is switching gears, planning to become a Public Benefit Corporation (PBC)—a rare hybrid that blends profit-making with a mission to benefit humanity.
The goal? To balance shareholder returns with its promise to ensure artificial general intelligence (AGI) helps everyone.

Here’s how it works:

• OpenAI’s for-profit arm becomes a PBC, focusing on its AGI mission.

• The nonprofit keeps shares in the PBC and steers charitable work in health, education, and science.

Why Go PBC?

1. Defensive Play: Makes takeovers harder, even for heavyweight investors like Microsoft.

2. More Flexibility: Eases fundraising and profit-sharing limits tied to nonprofits.

3. On Trend: Rivals like xAI and Anthropic are already using the PBC model.

The Bigger Picture
There are over 10,000 PBCs in the U.S., including names like Warby Parker and Allbirds. But critics warn of “purpose washing”—companies touting lofty missions without real accountability.

For OpenAI, this move aims to protect its values while expanding its reach. Can it truly balance purpose and profit? That’s a question for 2025 and beyond.

🧩 Movers:

Spotlight ✅ / At the Bottom ❌

• ✅ Lamb Weston (+2.6%): Gained momentum after activist investors pushed for strategic changes.

• ✅ Amedisys (+4.2%): Jumped on news of an extended merger agreement with UnitedHealth Group, despite regulatory hurdles.

• ❌ Tesla (-5.0%): Led the “Magnificent Seven” declines, slipping further in a rough month for megacaps.

• ❌ Nvidia (-2.1%): Pulled back as semiconductor stocks lost ground.

• ❌ Microsoft (-1.7%): Tech giant’s shares slid as rising yields spooked growth investors.

• ❌ Apple (-1.3%): The tech heavyweight couldn’t escape Friday’s broader sell-off.

Commodities Check: ✔️

• Oil (WTI Crude): Closed at $70.27 per barrel, marking a 0.90% increase from the previous day.

• Brent Crude: Settled at $74.00 per barrel, up 0.48%.

• Gold: Finished at $2,621.00 per troy ounce, a modest rise of 0.10%.

• Silver: Ended at $29.37 per troy ounce, declining by 1.54%.
  

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