As the world enters 2025, the U.Sstock market is off to a promising startJanuary 3rd marked a significant rebound following a rough end to the previous yearThe three major indexes—the Nasdaq, S&P 500, and Dow Jones Industrial Average—all showed considerable gainsThe Nasdaq composite climbed by an impressive 1.77%, while the S&P 500 rose by 1.26%. Notably, the Dow Jones saw an increase of 339.86 points, corresponding to a rise of 0.8%. This surge ended a rather dreary streak of five consecutive daily losses for the tech-heavy Nasdaq and S&P 500, as well as a four-day decline for the Dow.

In the realm of Chinese assets, optimism reigned as the Nasdaq Golden Dragon China Index recorded a modest increase of 0.93%. Many prominent Chinese companies saw notable stock price movements; Dingdong Maicai, a grocery delivery platform, surged by over 10%, while Kingsoft Cloud and Zeekr saw increases of more than 5% and 4%, respectively

On the flip side, Century Internet experienced a drop exceeding 2%, and Tencent Music saw a decrease of over 1%.

Shifting our focus to international oil markets, crude oil futures ended on a higher noteThe West Texas Intermediate (WTI) for February delivery gained $0.83, settling at $73.96 per barrel, accounting for a rise of 1.13%. Similarly, Brent crude for March delivery rose by $0.58, achieving a 0.76% increase, ending at $76.51 per barrelHowever, natural gas futures faced a different trajectory, dropping by 8.36%, which leaves them priced at $3.354 per million British thermal units.

One of the main drivers of excitement in the market was Tesla, which saw its stock soar over 8%, resulting in a whopping $100 billion increase in market capitalization in just one day—the largest single-day jump since November 12 of the previous yearIn a similar fashion, Nvidia experienced a notable uptick of over 4%, which translated into a market cap increase of $150.9 billion, marking the most significant single-day rise since November 20. Additionally, industry giants like Intel, Microsoft, Google, and Amazon all saw their stocks climb more than 1%, while Meta had a slight increase and Apple, along with Netflix, faced minor declines.

In a major announcement, Microsoft declared its intent to invest a staggering $80 billion in artificial intelligence (AI) data centers in its fiscal year 2025. According to Brad Smith, Microsoft's Vice Chairman and President, more than half of this investment will be directed towards projects in the United States

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Microsoft’s fiscal year concludes in June of the following yearThis ambitious plan reflects the heightened competition among major cloud infrastructure providers, such as Microsoft and Amazon, as they seek to expand their computing capabilitiesThese companies are investing billions to procure Nvidia chips, which are essential for training and deploying AI models, and are building new data centers to support the growing demand for AI technology.

Meanwhile, progress in automotive technology has ignited investor enthusiasm around the globeOne company, Cerence, which specializes in in-car AI voice technology, experienced a staggering stock increase of 143.76%. This surge was primarily fueled by the announcement of a deepened partnership with chipmaker NvidiaThe collaboration aims to enhance the performance of language models within car systems, marking a significant step forward in the integration of AI into driving experiences

With Nvidia's cutting-edge chip technology supporting Cerence's goals, the partnership aims to revolutionize in-car voice assistant services, making them more responsive and reliable for users.

On the housing finance front, the U.SDepartment of the Treasury made headlines by issuing a statement that has greatly influenced the stock prices of Freddie Mac and Fannie Mae, two government-sponsored enterprisesFreddie Mac's stock climbed by more than 28%, reaching its highest point since December 2016, while Fannie Mae's shares saw an increase nearing 30%, a peak not seen since February 2017. On January 2, the Treasury and the Federal Housing Finance Agency unveiled new guidelines that grant the Treasury the ultimate approval authority over the exit of these enterprises from government conservatorshipFuture plans for privatization will require Treasury oversight—signaling potential changes in the housing finance landscape.

Turning our attention to international investment matters, news broke on January 3 concerning a legal dispute brewing between the Japanese steel giant, Nippon Steel Corporation, and the U.S

governmentFollowing the government's decision to block Nippon Steel's acquisition of U.SSteel, Nippon Steel signaled its intention to pursue legal actionThe White House, in a statement, outlined its rationale for the decision, emphasizing national security concerns related to foreign ownership of critical American companies.

Should the acquisition be approved, it would result in one of the largest steel producers in the United States falling under foreign control, raising alarms about national security and the stability of vital supply chainsEstablished in 1901 and based in Pittsburgh, Pennsylvania, U.SSteel has played a pivotal role in America's industrial history, contributing steel to iconic structures throughout the countryHowever, in recent years, it has faced persistent financial challenges, lagging behind competitors in both production and market valuation, leading to its decision to explore potential sale opportunities.

In light of these developments, Nippon Steel announced plans to acquire U.S