Ten Stories Moving the Market

Ten Stories Moving the Market:

Nvidia CEO Jensen Huang said the company’s next generation of chips is in “full production,” saying they can deliver five times the artificial-intelligence computing of the company’s previous chips when serving up chatbots and other AI apps – Reuters. (Why you should care – the statement points to Nvidia reasserting itself as the technology leader in the AI chip race) 

Nvidia said it has seen strong demand from customers in China for the H200 chip that the Trump administration has said it will consider letting the chipmaker ship to that country; license applications have been submitted and the government is deciding what it wants to do with them, according to Chief Financial Officer Colette Kress – Bloomberg. (Why you should care – the statement follows recent commentary that Nvidia could have trouble keeping up with Chinese demand for H200 chips, potentially boosting the company’s earnings outlook)

Democrats’ appetite for another government shutdown looks diminished in the wake of the 43-day government-funding lapse, driven by centrists who concluded that too much damage was inflicted on American households—often the same ones they say they are trying to help – WSJ. (Why you should care – Senate Majority Leader Chuck Schumer (D-NY) recently said the government isn’t headed toward another shutdown) 

After a year of rolling policy shocks, the U.S. economy is set to get a lift from the White House’s tax-cuts package to keep the expansion on track in 2026; American taxpayers will get bigger refunds in the first half of this year as a result of Trump’s signature bill, according to economists – Bloomberg. (Why you should care –economic output is expected to increase by 2% in 2026, below the Federal Reserve’s forecast for 2.3%)

The sharp increase in tariffs imposed last year by the Trump administration may reduce inflation rather than increase it, according to research published by the Federal Reserve Bank of San Francisco – SF Fed. (Why you should care – the researchers suggested that lowering interest rates is likely the proper monetary policy response)

Microchip Technology raised its expectations for third-quarter net sales, helped by recovery across end markets and strong bookings; the company now expects net sales to be about $1.19 billion for the third quarter of fiscal 2026, above its original forecast range of $1.11 billion to $1.15 billion provided in November – Reuters. (Why you should care – the commentary should bode well for other industrial semiconductor companies like NXP, Texas Instruments, and Infineon)

General Motors and several rivals reported year-end sales slumps, an ominous sign that U.S. auto sales will slow this year as consumers push back on higher prices – WSJ. (Why you should care – automakers could be forced to lower prices and boost incentives to stimulate sales)

Danish drugmaker Novo Nordisk is launching its once-daily Wegovy pill in the United States, offering doses of 1.5 milligrams and 4 mg at $149 per month for self-paying patients in an intensely competitive weight-loss drug market – Reuters. (Why you should care – a cheaper pill form is likely to weigh on Novo Nordisk’s overall margin mix)

Prices of Canadian heavy crude weakened to a one-year low as traders weighed the possibility that more of Venezuela’s sanctioned oil could flow to the U.S. Gulf Coast; Canada, the largest producer of heavy crude in the world, has benefited the most from the decline of Venezuelan output in recent year – Bloomberg. (Why you should care – the flow of Venezuelan heavy crude to the U.S. could hurt Canada’s bargaining power in ongoing trade negotiations)

Taiwan's Foxconn, the world's largest contract electronics maker, reported record fourth-quarter revenue, driven by strong demand for artificial intelligence products; Foxconn said robust demand for AI server rack products, even against the elevated fourth-quarter base, is expected to bring performance toward the upper end of its past five-year range – Reuters. (Why you should care – the company said the results exceeded its expectations on both a quarter-over-quarter and year-over-year basis)

Economic Calendar:

Eurozone – HCOB Eurozone Services, Composite PMI (Final) for December (4 a.m.)

U.K. – S&P Global U.K. Services, Composite PMI (Final) for December (4:30 a.m.)

Fed’s Barkin (Richmond, Non‑voter) Speaks (8 a.m.)

Eurozone – German CPI (Preliminary) for December (8 a.m.)

U.S. – S&P Global U.S. Services, Composite PMI (Final) for December (9:45 a.m.)

Treasury Auctions $75 Billion in 6-Week Bills (11:30 a.m.)

U.S. - American Petroleum Institute Crude Oil Inventory Data (4:30 p.m.)