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Nvidia has entered into a non-exclusive licensing agreement with AI startup Groq, gaining access to its chip technology focused on inference—the process where trained AI models respond to user requests. As part of the deal, Nvidia will hire Groq’s founder and CEO, Jonathan Ross, a former Google AI chip veteran, along with President Sunny Madra and other engineering team members. Groq, which will continue as an independent entity under new CEO Simon Edwards, specializes in inference, a market where Nvidia faces competition from AMD and startups like Cerebras Systems. While financial terms were not disclosed, speculation from CNBC suggests a $20 billion acquisition, though unconfirmed by either party. This deal mirrors recent tech industry trends where large firms secure talent and technology without full acquisitions, as seen with Microsoft, Meta, and Amazon. However, such arrangements have drawn antitrust scrutiny, though the non-exclusive nature of this license may help maintain a semblance of competition. Groq, recently valued at $6.9 billion after a funding round, uses on-chip SRAM memory to enhance AI performance, distinguishing itself in a memory-constrained industry. Nvidia’s CEO Jensen Huang remains confident in maintaining leadership as AI shifts toward inference, despite growing competition.
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The US economy in 2025 is defined by a K-shaped recovery, where the economic divide between income groups has widened. Higher-income households boosted spending by 4% in November, while lower-income groups saw less than 1% growth, reflecting disparities in financial security and optimism. Consumer sentiment is down nearly 30% from December 2024, with fears of rising unemployment—already at a four-year high of 4.6%—and tariff-driven inflation weighing on the middle and lower classes. Retailers like Walmart and TJX, focusing on value, outperformed the S&P 500, while dollar stores attracted higher-income shoppers seeking savings. Despite these divides, overall economic growth persists, driven by consumer spending from wealthier households, with GDP growth at 4.3% in Q3. However, challenges loom in 2026 as potential tariffs and delayed price hikes could exacerbate pressures on lower-income consumers. Analysts suggest the K-shaped dynamic does not yet threaten macroeconomic growth, as higher-income spending sustains the economy, but the divide—also influenced by age and asset ownership—remains a defining feature of the economic landscape.
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US stocks advanced on Tuesday, with the S&P 500 setting a new record close at 6,909.79, up 0.5%, while the Nasdaq Composite rose 0.6% and the Dow Jones Industrial Average gained 0.2%, marking a fourth consecutive session of gains. Despite strong economic data revealing a 4.3% annualized GDP growth in Q3—exceeding the expected 3.3%—investors scaled back expectations for imminent Federal Reserve rate cuts, with odds of a January cut dropping. Precious metals, including gold and silver, continued their remarkable rally, hitting new highs and on track for their best year in over 40 years, while copper also reached a record above $12,000 per ton. However, consumer confidence fell for the fifth straight month, indicating persistent economic unease. On the corporate side, Novo Nordisk’s stock surged after US approval of its Wegovy weight-loss drug. Meanwhile, discussions around revising the Fed’s 2% inflation target to a range-based system emerged, and government spending increased despite a reduction in federal workforce under the Department of Government Efficiency. As markets head into the Christmas holiday, early closures and full-day closures are scheduled for Wednesday and Thursday, respectively.
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The past year at the Federal Reserve was marked by a rare conflict between its goals of maximum employment and stable prices, echoing 1970s stagflation, and resulting in significant internal divisions over interest rate policies. Despite this, Chair Jerome Powell secured consensus for three rate cuts in 2025, though future chairs may face challenges if inflation remains high and the job market weakens. President Trump’s economic policies, including tariffs and immigration curbs, alongside his pressure on the Fed and threats to remove Powell, sparked fears over central bank independence. Tariffs initially had a milder-than-expected impact on inflation, but concerns persist about sustained price pressures into 2026, exacerbated by data gaps from a record government shutdown. The labor market showed signs of cooling, prompting dissents within the Fed on whether to prioritize inflation or employment. Looking ahead, the Fed plans a cautious approach with only one rate cut expected in 2026, as it navigates a muddy economic picture, fiscal tailwinds, and ongoing inflation above its 2% target. A new Fed chair, likely favoring lower rates, will inherit these challenges amid questions about independence and economic forecasts.
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US airlines are gearing up for a record-breaking holiday season, expecting an average of 2.9 million passengers daily from Dec. 19 to Jan. 5, a 1.5% rise from last year, according to Airlines for America. Domestic round-trip airfares are set to average $900, up 7% from 2024. Major airports are also bracing for significant increases, with New York and New Jersey expecting 5.7 million travelers (1% up), Chicago’s airports preparing for 4.8 million (6% up), and Dallas Fort Worth anticipating 5 million (3.2% up). However, the year has been turbulent for airlines, with economic uncertainty sparked by President Trump’s April tariff announcement and a government shutdown in autumn leading to temporary flight cuts at 40 major airports due to staffing shortages at the Federal Aviation Administration. Additionally, ongoing airport renovations in cities like New York and Chicago are causing potential delays, with authorities advising travelers to plan for construction and traffic congestion. Despite these challenges, bookings saw a recovery over the summer, setting the stage for a busy holiday travel period.
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The U.S. Food and Drug Administration has approved Novo Nordisk's oral weight-loss pill, a 25 mg dose of semaglutide sold as Wegovy, marking a pivotal moment for the Danish drugmaker in the competitive obesity treatment market. This approval, announced on December 22, gives Novo an edge over rival Eli Lilly, especially after a tough year of declining shares and slowing sales of its injectable Wegovy due to competition and compounded versions. A late-stage study demonstrated impressive results, with participants losing an average of 16.6% of their body weight over 64 weeks compared to 2.7% on placebo. Approved for chronic weight management in adults with obesity or overweight and related conditions, the pill targets a massive potential market, projected to reach $150 billion annually by the next decade. Novo’s shares jumped over 8% in early trading, signaling strong market optimism. This development could open access to millions of patients globally, addressing spiraling healthcare costs linked to obesity while bolstering Novo Nordisk’s position in the industry.
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Stocks ended a mixed week with a rally on Friday, marking the final full trading week of 2025. The Nasdaq Composite gained 0.4%, while the Dow Jones Industrial Average fell 0.7%, and the S&P 500 remained nearly flat. All major indexes are within 3% of record highs as the year closes. Consumer sentiment, though slightly up in December, is significantly lower than last year, highlighting a K-shaped economy where affluent households fuel spending while lower-income ones struggle. Inflation data surprised with a 2.7% rise in November, potentially paving the way for further Federal Reserve rate cuts in 2026. Big Tech stocks, including Oracle, Nvidia, and Micron, boosted market optimism, aligning with hopes for a "Santa Claus Rally" in the last trading days. However, concerns over valuations and persistent consumer frustration with rising essential costs temper expectations. Upcoming economic data, like consumer confidence, and holiday-shortened trading sessions will shape the week's focus, while Wall Street remains broadly positive on 2026's market outlook, driven by economic growth and earnings potential beyond the AI sector.
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David Ellison, CEO of Paramount Skydance Corp., aggressively pursued Warner Bros. Discovery Inc. for months, aiming to merge and bolster Paramount’s struggling position in the entertainment industry. Despite multiple meetings with Warner Bros. CEO David Zaslav and several rejected bids, Ellison’s efforts faltered when his legal team sent a threatening letter on Dec. 3, questioning the sale process’s fairness. This misstep, unbeknownst to some in Ellison’s circle, was followed by a revised offer, but it was too late—Warner Bros. sold its studio and HBO Max to Netflix Inc. that night. Ellison, supported by his father Larry Ellison’s wealth and political ties, persists with a $30-a-share offer to shareholders and hopes to derail the Netflix deal. However, Paramount’s erratic tactics, including demands for exclusivity and extensive data access, damaged its standing with Warner Bros., paving the way for Netflix to secure the iconic assets. Ellison’s vision to revitalize Paramount through this merger now faces an uncertain future as shareholder sentiment wavers and Warner Bros. stock declines.
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Elon Musk's 2018 Tesla pay package, initially valued at $56 billion, was reinstated by the Delaware Supreme Court on December 19, reversing a lower court's 2024 decision to rescind it as "unfathomable." Now worth about $139 billion, the package could boost Musk's stake in Tesla from 12.4% to 18.1% if fully exercised. The court deemed the prior rescission inequitable, noting Musk's uncompensated efforts over six years. This ruling, which follows shareholder approval of a new potential $878 billion pay plan, reinforces Musk's control over Tesla, a priority for him. The decision also counters criticism of Delaware's business environment, though Musk has moved Tesla’s incorporation to Texas, where stricter rules for shareholder lawsuits apply. Critics of the original package, led by investor Richard Tornetta, had argued Tesla's board was conflicted, but the Supreme Court's stance aligns with strong shareholder support. Tesla shares saw minimal after-hours movement, and Musk celebrated the outcome on X as a vindication. Legal challenges may continue, but the ruling marks a significant win for Musk amidst his broader ventures and Tesla's evolving corporate strategy.
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Jeff Bezos’ Blue Origin marked its 16th human spaceflight on Saturday with a successful suborbital mission carrying a six-person crew aboard the New Shepard spacecraft. Launched at 9:15 a.m. New York time from West Texas, the flight lasted roughly 11 minutes and included historic passengers like Michaela Benthaus, the first wheelchair user to reach space, and Hans Koenigsmann, a former SpaceX engineer. Originally scheduled for Dec. 18, the mission was delayed due to pre-flight issues. Blue Origin continues to advance space tourism, though ticket prices remain undisclosed, with competitor Virgin Galactic charging approximately $600,000 for similar trips. The company also operates the larger New Glenn rocket, which recently completed a successful mission deploying NASA spacecraft to Mars and landing its reusable booster. Notable past passengers include Katy Perry, Lauren Sánchez, and Gayle King, who formed the first all-female crew in over 60 years during an April flight. Blue Origin’s efforts highlight its dual focus on short tourism flights and ambitious orbital missions.
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SoftBank Group, under CEO Masayoshi Son, is aggressively pursuing a $22.5 billion investment in OpenAI by year-end, positioning itself as a key player in the AI race. To fund this ambitious bet, SoftBank has sold significant stakes in Nvidia ($5.8 billion) and T-Mobile US ($4.8 billion), and may leverage undrawn margin loans against its Arm Holdings ownership, alongside other capital sources like cash reserves and potential IPOs such as PayPay. This investment, initially made at a $300 billion valuation for OpenAI, could yield substantial gains as the startup's valuation approaches $900 billion. The funds are vital for OpenAI's escalating costs in AI model training and projects like the $500 billion Stargate initiative for AI data centers, crucial for maintaining a competitive edge against rivals like Google. Meanwhile, SoftBank's focus on OpenAI has slowed other Vision Fund deals, with Son personally approving transactions over $50 million. The rush to finance massive AI infrastructure, mirrored by tech giants like Meta, raises concerns about an "AI bubble" if returns fall short of expectations. Despite the risks, SoftBank's strategic moves, including potential divestitures in Didi Global, underscore its commitment to shaping the future of AI technology.
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Nvidia (NVDA) stock surged 3.93% on Friday following a Reuters report that the Trump administration has started reviewing the export of Nvidia’s H200 chips to China, signaling potential adherence to President Trump’s promise to allow such sales with a 25% government fee. The US Commerce Department has forwarded license applications to other departments for evaluation over the next 30 days. Additionally, Nvidia’s $5 billion investment in Intel (INTC) was cleared by US antitrust agencies, boosting Intel’s shares by 1.49%. This positive momentum extended to other chipmakers, with Micron (MU) up 6.99%, Advanced Micro Devices (AMD) up 6.15%, and Broadcom (AVGO) up 3.18%. However, challenges remain as national security experts warn that providing China access to advanced US chip technology could undermine America’s AI leadership. Furthermore, China’s past reluctance to accept Nvidia chips due to its own security concerns adds uncertainty. Despite these hurdles, the news revived the broader tech sector, pushing Nvidia and related stocks to session highs and setting Nvidia on track for a weekly gain as the world’s largest company by market cap.
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Inflation pressures in November were milder than anticipated, with the Consumer Price Index (CPI) rising 2.7% year-over-year, below the 3.1% forecast by economists, as reported by the Bureau of Labor Statistics. Core CPI, excluding volatile food and energy prices, increased by 2.6%, also under expectations. This marks the first inflation data release since November, as October's report was canceled due to a 43-day government shutdown, leaving no month-to-month comparisons. Analysts suggest this data aligns with a slowdown in core PCE inflation to 2.7%, closer to the Federal Reserve’s 2% target. However, skepticism remains due to data gaps, and tariff impacts on prices appear muted despite holiday import stockpiling. The Fed, focused on supporting a softening labor market, may remain cautious, with traders estimating a 25% chance of a rate cut in January. Recent Fed projections indicate only one rate cut in 2026 after reductions in 2025. Meanwhile, the November jobs report showed higher-than-expected job creation but a four-year high unemployment rate. This mixed economic picture, alongside inflation trends, will likely keep the Fed on the sidelines for now, as it navigates its dual mandate of price stability and employment.
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Micron Technology (MU) has forecasted a second-quarter adjusted profit of $8.42 per share, far exceeding Wall Street’s estimate of $4.78, fueled by rising memory chip prices amid tight supply and surging demand from AI data centers. The company’s stock rose nearly 15% following the announcement. Micron, one of three major suppliers of high-bandwidth memory (HBM) chips critical for AI models, also projected current quarter revenue at $18.70 billion, surpassing expectations of $14.20 billion. CEO Sanjay Mehrotra highlighted that memory markets will likely remain constrained beyond 2026, with the company unable to meet full demand for many customers. AI demand is a key driver, enhancing margins and prompting Micron to prioritize AI-related production, including repositioning facilities and increasing 2026 capital expenditure to $20 billion. The company is also negotiating multiyear contracts with key clients. Despite strong first-quarter results of $13.64 billion in sales and $4.78 per share in adjusted profit, supply shortages are impacting customers across segments, as noted by Chief Business Officer Sumit Sadana. Analysts see Micron as a major beneficiary of the AI boom, strategically positioned to capitalize on the growing need for memory chips in data centers and beyond.
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Moderate House Republicans, frustrated by Speaker Mike Johnson’s refusal to allow a vote on extending Obamacare subsidies with cost-saving reforms, have allied with Democrats to force a January vote via a discharge petition, achieving a House majority of 218 votes. Led by figures like Pennsylvania’s Brian Fitzpatrick and New York’s Mike Lawler, the revolt comes too late to prevent premium spikes for over 20 million Americans as the Covid-era subsidies expire on Dec. 31, though a vote is set before open enrollment closes on Jan. 15. Premiums could more than double without the tax credits, per KFF research, creating urgency for policyholders. While the House action is significant, Senate approval remains uncertain after rejecting a three-year extension earlier, though bipartisan senators are exploring compromises like income limits. This rebellion underscores Johnson’s diminishing control over a slim 220-seat Republican majority, with Democrats poised to leverage the issue in upcoming elections. Johnson downplayed the internal rift, insisting he retains House control despite mounting challenges.
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Ford Motor Company has announced a significant strategic shift in its electric vehicle (EV) business, moving towards hybrids and extended-range EVs (EREVs) instead of focusing solely on full EVs. This pivot includes canceling the current F-150 Lightning EV pickup and transitioning to an EREV architecture for its next version by 2027. The company will incur $19.5 billion in charges due to vehicle cancellations, asset impairments, and restructuring, with major financial impacts expected in 2025-2027. Ford is also introducing a cost-effective Universal EV Platform for smaller EVs, starting with a midsize pickup in 2027, and repurposing battery plants for a new energy storage business. Production facilities are being realigned, with plants in Tennessee and Ohio shifting focus to gas, hybrid, and commercial vehicles. By 2030, Ford anticipates that 50% of its global sales will consist of hybrids, EREVs, and EVs, a significant rise from 17% in 2025. Despite the massive charges, Ford raised its 2025 adjusted EBIT guidance to $7 billion, reflecting underlying business strength. CEO Jim Farley emphasized the need to redeploy capital into higher-return areas like Ford Pro, trucks, vans, and hybrids to meet customer demands and improve profitability.
