In early trading Friday, stock futures indicated a downward trend after the major market indexes, including the S&P 500 and Dow Jones Industrial Average, recorded new closing records in Wednesday’s holiday-shortened session. This marked the fifth consecutive session of gains for these indices. Dow futures were down by nearly 0.2%, while S&P 500 futures showed marginal declines. Conversely, Nasdaq futures edged upwards. Meanwhile, U.S. benchmark crude oil futures hovered around $58.50 per barrel, maintaining close proximity to two-week highs. Bitcoin saw a slight increase, trading at $88,600, compared to $87,400 on Wednesday. Additionally, yields on the 10-year Treasury note rose to 4.14%, slightly higher than previous levels, which can impact various consumer loans.
In the commodities market, the prices of gold and silver continued to soar, reaching record highs. Gold futures traded at approximately $4,543.50 an ounce, with earlier peaks hitting $4,561.60. Silver futures likewise experienced upward momentum, recently trading at $75.67 an ounce after a high of $75.84 earlier in the day. December has been particularly profitable for precious metals; silver has seen a significant increase of over 27% this month alone, while gold has risen by more than 6%. Year-to-date, silver’s value has more than doubled, and gold has surged by over 70%, as investors flock to these safe-haven assets amid expectations of lower interest rates and increased central bank holdings.
In the tech sector, Nvidia announced an agreement to acquire assets from AI startup Groq. According to Groq’s statement, the non-exclusive licensing agreement focuses on their inference technology. Reports indicate that the deal involves a substantial asset purchase worth around $20 billion in cash, as confirmed by Alex Davis, CEO of Disruptive, which recently facilitated a $750 million fundraising round for Groq. This acquisition aligns with the rising trend of AI stocks towards the end of the year, and Nvidia shares saw a 0.6% increase in premarket trading.
On the regulatory front, the National Highway Traffic Safety Administration (NHTSA) initiated an investigation into Tesla regarding a door release issue in the 2022 Model 3. A petition highlighted that the mechanical door release mechanism was difficult to access, particularly in emergency situations, describing it as hidden, unlabeled, and unintuitive. The investigation is expected to impact about 179,000 vehicles. This is not the first inquiry into Tesla, with prior probes into electronic door lock issues involving other models. Despite the scrutiny, Tesla shares experienced a slight uptick in premarket trading.
Lastly, Nike shares climbed further following a notable stock purchase by Apple CEO Tim Cook, who is also a member of Nike’s board. The sports apparel company saw its shares rise 4.6% during Wednesday’s trading after a regulatory filing revealed Cook’s nearly $3 million acquisition of the stock. However, despite this recent surge, Nike shares remain down by 20% for the year. In premarket trading, the company’s shares increased by nearly 0.4%.
