On December 24th local time, the three major US stock indexes collectively closed higher, with the Nasdaq rising 1.35% and returning to above 20000 points; The S&P 500 index rose 1.1%, while the Dow Jones Industrial Average rose 390.08 points, or 0.91%.
Large tech stocks rose across the board, with Nai soaring by over 2%, Apple, Amazon, and Meta rising by over 1%, and Nvidia, Google, Intel, and Microsoft rising slightly.
Tesla reported $462.25, up 7.35%, with a latest market value of $1.5 trillion. Its market value increased overnight by $101.7 billion (approximately RMB 741.9 billion).
Apple has reached new highs for three consecutive trading days, with a total market value of $3.9 trillion.
As of press time, Bitcoin was reported at $98191.38 per coin, up 3.4885% for the day. Cryptocurrency concept stocks generally rose. Bitdeer Technologies closed up 14.81%, Riot Platforms closed up 8.06%, and Canaan Technology closed up 9.22%. Cryptocurrency exchange giant Coinbase closed up 4.28%, BTC Digital closed up 11.06%, Hut 8 closed up 12.15%, and "Bitcoin holder" MSTR closed up 7.81%.
According to China Securities Journal, on December 24th Beijing time, MicroStrategy was officially included in the Nasdaq 100 Index. Currently, MicroStrategy is one of the institutions with the largest holdings of Bitcoin worldwide. As of December 15th, MicroStrategy holds approximately 439000 bitcoins and has invested approximately $27.1 billion in bitcoins, with an average purchase price of $61700 per coin.
Popular Chinese concept stocks fluctuated, with the Nasdaq China Golden Dragon Index rising 0.79%. Fangduoduo has risen by over 5%, NIO and Douyu have risen by over 3%, Upward Rongke has risen by over 2%, and Ideal Auto and Xiaopeng Motors have risen by over 1%.
The settlement price of international crude oil futures has risen by over 1%. WTI crude oil futures for February closed up $0.86, or 1.24%, at $70.1 per barrel. Brent crude oil futures for February closed up $0.95, or 1.31%, at $73.58 per barrel.
Due to Tuesday being Christmas Eve, the US stock market closed three hours earlier than usual, and will be closed for the day on Wednesday. It is worth mentioning that Tuesday is the first day of the seven trading days of the Santa Claus market, and since 1950, the S&P 500 index has risen an average of 1.3% in these seven days.
Ned Davis Research research analyst London Stockton said, "The Santa Claus market may continue, and seasonal factors will be very evident before the end of the year. There are signs of oversold in the S&P index in the short term, and excessive optimism has been eased earlier
Paul Hickey, co-founder of Bespoke Investment Group, told the media, "There are many positive factors worth considering, but I believe that from now on, you should also restrain your enthusiasm because the market has already partially rebounded
However, Bespoke Investment Group strategists point out that the S&P index has risen by over 26% this year and has not experienced a pullback of more than 10%. He also mentioned that S&P remained stable above its 200 day moving average last year.
Strategist Jill Carey Hall stated that Bank of America's clients have been buying US stocks for the seventh consecutive week. But Goldman Sachs' new industry model suggests that as optimism approaches historical highs, investors should take more 'defensive measures'.
It is worth noting that on December 24th local time, the Bank Policy Institute (BPI) officially sued the Federal Reserve, accusing it of using an opaque process to test the resilience of banks in its annual stress tests.
The lawsuit states that "due to the lack of transparency by the Federal Reserve Board of Governors, the banking industry is facing significant and unpredictable fluctuations in capital requirements
The Bank of America Policy Institute is an industry organization whose members include large banks such as JPMorgan Chase, Bank of America, Goldman Sachs, Morgan Stanley, Citibank, Wells Fargo, and UBS. The American Bankers Association and the American Chamber of Commerce are also members of this organization. The chairman of the board of directors of the Bank of America Policy Institute is none other than Jamie Damon, the "Wall Street tycoon" and CEO of JPMorgan Chase.
The board of directors of the Bank of America Policy Institute gathers influential figures from Wall Street
This lawsuit also marks a substantial escalation of Wall Street's confrontation with the Federal Reserve's banking regulation.
As early as 2023, in response to the Federal Reserve's proposal to implement new capital rules (the final version of Basel III), Wall Street quickly rallied to launch a fierce protest against the Fed and threatened to sue. Faced with the fierce attack from Wall Street, the Federal Reserve hesitated this autumn and announced its readiness to significantly reduce the proposed capital increase requirements.
But obviously, this struggle has not ended here. Now Wall Street is targeting the Federal Reserve's annual stress test with a fierce attack.
The stress test aims to measure the performance of the banking industry in the face of unfavorable situations. If the test results are poor, the Federal Reserve will require banks to increase capital and impose restrictions on dividend payouts and repurchases. In the recent annual test, the conditions examined were how banks cope with a 40% drop in commercial real estate prices and a 36% drop in residential prices.
In the lawsuit, the banks stated that they did not want to cancel the stress tests, but demanded that the Federal Reserve increase the transparency of the stress tests. The lawsuit states, "Stress testing may result in billions of dollars in unexpected capital burdens being imposed on individual banks for no apparent reason, which could have adverse effects on the entire economy
Goldman Sachs CEO David Solomon criticized earlier this year that the process was very opaque and the volatility of the results made "prudent capital management difficult for us and all our peers".
The Federal Reserve issued a statement after the close of trading on December 24th, stating that it is preparing to seek public opinion on significant changes to the stress tests, with the aim of increasing transparency and reducing the volatility of the results.
Federal Reserve
We appreciate the Fed's announcement as a first step towards transparency and accountability, but it is still necessary to file this lawsuit to uphold our legitimate rights, "said Greg Bell, CEO of Bank of America Policy Institute
Of course, the US banking industry is also concerned that the Federal Reserve's announcement does not mention substantial changes in capital requirements, which cannot meet their demand for reducing heavy banking regulation.
Dennis Kelleher, Chairman of Better Markets, a US economic think tank, believes that the Federal Reserve has almost made it clear that it intends to hand over the "key" to stress testing to Wall Street banks. This will make the testing highly predictable and easy to manipulate, which is more beneficial for banks.
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