U.S. stocks rise for five consecutive days to reach new highs! The Federal Reserve's interest rate cut expectations cool down, and high-dividend stocks attract long-term investors to enter the market.

Stock Market Overview: Three Major Indices Rise Together, S&P 500 and Dow Hit New Closing Highs

The US stock market continues its strong momentum, marking the fifth consecutive day of gains. On Monday, the Dow Jones Industrial Average rose 0.6%, the S&P 500 increased 0.32%, and the tech sector index gained a modest 0.22%. Notably, both the S&P 500 and the Dow have broken their historical closing highs, indicating sustained market optimism.

The Nasdaq China Golden Dragon Index underperformed, declining 0.07%. In Europe, the UK FTSE 100 fell 0.19%, France’s CAC 40 was nearly flat with a decrease of 0.01%. Germany and Italy are closed for holidays.

Technology stocks led the rally, with Micron Technology up over 241% for the year, Sandisk soaring 613%, and Western Digital increasing 300%. These leading tech giants, known for strong profitability, attract value investors seeking stocks with over 7% dividend yields for ten consecutive years.

Economic Data: Labor Market Slows, Fed’s Rate Cut Space Limited Next Year

Last week, US initial jobless claims fell to 214,000, below the market expectation of 235,000, but this did not alleviate concerns about the labor market. For the week ending December 20, continued claims increased by 38,000 to 1.923 million, reflecting a stagnating employment situation.

Analysts note that the labor market has entered a “no hiring, no firing” dilemma. The unemployment rate in November rose to 4.6%, a four-year high. While some of the increase is related to technical factors from government shutdowns, overall employment prospects remain uncertain.

Fed rate cut expectations have been scaled back. According to CME Group’s market tools, traders now expect the Fed to implement two rate cuts by 2026, each of 25 basis points. BlackRock strategists point out that with a cumulative 175 basis points of cuts in this cycle, the Fed is approaching a neutral interest rate level, leaving limited room for further cuts in 2026.

Bond Market and Commodities: US Treasury Yields Fall, Safe-Haven Assets Under Pressure

The 10-year US Treasury yield is approximately 4.13%, down 3 basis points from the previous trading day. The US dollar index remains below 98.0, at 97.95, up 0.07%. The dollar has depreciated 0.18% against the Japanese yen, and the euro has fallen 0.14% against the US dollar.

Gold prices declined 0.13%, at $4,479.4 per ounce. WTI crude oil decreased 0.12%, at $58.4 per barrel. Overall, commodity markets remain stable.

Cryptocurrency Assets: Bitcoin and Ethereum Steady

According to the latest data, Bitcoin is trading at $94,140, up 1.31% in 24 hours. Ethereum is at $3,290, up 3.23% in 24 hours. The crypto market continues to fluctuate, with investors closely watching macroeconomic trends.

Global News: GDP Surpasses Expectations, Companies Plan Price Hikes Next Year to Counter Tariffs

US Q3 real GDP grew 4.3%, the fastest in two years, far exceeding expectations. The sustained strong economic performance supports optimistic earnings outlooks for companies.

Morgan Stanley analysts note that companies have gradually passed on tariff costs by raising prices and plan to further increase prices in 2026. Over the past two quarters, tariffs significantly increased non-labor costs for companies, prompting them to reduce hiring to ease pressure. However, since Q3, many have successfully shifted more costs onto consumers.

Regulatory Developments: EU Digital Asset Tax Transparency Regulations to Launch on January 1

The EU’s latest digital asset tax transparency regulation (DAC8) will take effect on January 1, 2026, marking a further deepening of crypto regulation across the EU. Under the new rules, crypto asset service providers must collect and report detailed user transaction data, which will be shared among member states’ tax authorities.

For crypto users, penalties for violations are more severe. Tax authorities, upon discovering tax evasion or avoidance, can take actions with the help of other EU agencies, including freezing or confiscating related assets, even if the assets or platforms are outside the user’s jurisdiction.

Technology Sector: OpenAI Explores ChatGPT Advertising Model, NVIDIA Temporarily Suspends Intel’s New Process Testing

OpenAI employees are discussing embedding advertisements within ChatGPT, aiming to create a new form of digital advertising that prioritizes promotional content in responses. Multiple ad prototypes have been designed for internal evaluation.

In semiconductors, NVIDIA has recently halted testing Intel’s 18A process. Intel states that its 18A technology is progressing smoothly. In September, NVIDIA invested $5 billion in Intel shares, and both companies agreed to collaborate on developing chips for PCs and data centers.