OPEC+ members decided to keep oil output steady amid geopolitical tensions and a significant drop in oil prices, prioritizing market stability over increasing supply despite internal and external crises affecting member countries.
Since Trump's tariffs in April caused turmoil in the US bond market, the administration has taken measures to keep yields low and prevent a resurgence of volatility, but underlying concerns about high debt levels and fiscal policy risks remain, making the peace fragile.
U.S. stock futures remain steady following the Christmas holiday, indicating a pause in market activity and investor sentiment during the holiday period.
The Federal Reserve has started 'reserve management purchases,' buying $40 billion of short-term Treasurys monthly to stabilize markets and provide liquidity, marking a significant shift that could influence interest rates and market conditions, even as it differs from traditional quantitative easing.
Bitcoin remains near $111,000 amid global risk aversion driven by China's trade measures, with its correlation to gold at a multi-year high, reinforcing the 'digital gold' narrative. The broader crypto market shows cautious stability after recent liquidations, with institutional demand and on-chain signals supporting long-term confidence despite short-term volatility influenced by macroeconomic and geopolitical factors.
Crypto companies are rapidly launching tokenized stocks, which pose risks to investors and market stability due to lack of traditional protections and regulatory oversight, sparking concerns among regulators and Wall Street.
U.S. stock futures remain steady following a record rally, despite the ongoing government shutdown, indicating market resilience amid political uncertainty.
The bond market remains surprisingly calm despite political tensions and high tariffs, possibly because investors believe the Federal Reserve will maintain independence, with some hedging against potential declines. This stability contrasts with the stock market's ongoing complacency, raising questions about future reactions.
Treasury Secretary Scott Bessent discreetly advised President Trump against firing Fed Chair Jerome Powell, emphasizing legal risks, market stability, and strategic timing, which ultimately helped preserve Powell's position and avoid a potential crisis.
President Trump is attempting to oust Federal Reserve Chair Jerome Powell over a costly renovation project, which he claims is mismanaged, but doing so risks market panic and undermining the Fed's independence. The project, aimed at modernizing the aging Fed headquarters, has faced criticism over its expenses and changes to plans, with Trump considering a controversial workaround to dismiss Powell for cause. The situation highlights tensions between political influence and the Fed's role in maintaining economic stability.
The stock market rose despite U.S. strikes on Iran, with major indices gaining and oil prices remaining stable, reflecting investor confidence and optimism about potential long-term benefits of the strikes, while experts warn of oil volatility and regional risks.
Bitcoin recovers above $100,000 amid geopolitical tensions from U.S. strikes on Iran, with markets showing resilience and traditional assets like gold and oil remaining stable; crypto exchanges like OKX consider U.S. IPOs, while market sentiment suggests a contained escalation rather than a broader conflict.
President Trump is considering early nominations for the next Federal Reserve Chair, with potential candidates including Kevin Warsh, Scott Bessent, Kevin Hassett, and Christopher Waller, amid political and market implications of an expedited process that could influence monetary policy and Fed independence.
A trader at WinShore Capital Partners suggests that despite ongoing inflation concerns and tariff impacts, the stock market may remain stable for months, as the full effects of tariffs are delayed and the market remains uncertain about inflation and recession risks. The market's outlook is characterized by unpredictability, with potential for large daily swings, but overall range-bound movement.