Here are the key updates that investors should know as they begin their day of trading:
1. Positive Market Trends
Stocks are continuing to rise. On Monday, the three main stock market indicators increased again, marking a successful end to the year’s upward trend. The widely followed S&P 500 has gone up by 3.8% in December, having just completed its longest winning streak in six years.
The Dow, which represents major companies, is up by nearly 4%, and the Nasdaq, which focuses on technology, has seen an almost 5% increase. Investors are still optimistic after the Federal Reserve hinted last week that there could be three interest rate cuts in 2024, following the central bank’s ongoing efforts to control inflation.
On Tuesday, investors will be keeping an eye on data related to building permits and housing starts, and there’s a scheduled speech by Atlanta Fed Governor Raphael Bostic.
2. Big Change at Sea
The U.S. military is taking action. On early Tuesday, Defense Secretary Lloyd Austin declared that the United States, along with several other countries, would unite to defend commercial ships facing attacks in the Red Sea from Houthi militants backed by Iran.
The Houthis, in support of the Palestinian group Hamas, have targeted more than a dozen vessels since the Gaza war began in early October. These attacks have led major shipping and oil companies to reroute their traffic, causing disruptions in the global supply chain.
3. Caution Ahead
Apple is stopping the sale of two of its Watches right before Christmas. Because of a disagreement over intellectual property, the tech company will stop selling the Apple Watch Series 9 and Apple Watch Ultra 2 online on Thursday afternoon, and in stores after Sunday.
Apple’s unexpected decision comes nearly two months after the U.S. International Trade Commission issued two orders limiting the company’s ability to sell products with a blood oxygen feature, following a dispute with medical technology firm Masimo.
4. Setback for Founder
The journey ends here for Trevor Milton, the founder of struggling electric- and hydrogen-powered truck maker Nikola. He has been sentenced to four years in prison and fined $1 million for federal fraud crimes.
Prosecutors had aimed for an 11-year sentence, drawing parallels between Milton and disgraced Theranos founder Elizabeth Holmes, who received a little over 11 years for her fraudulent blood-machine scheme. Despite Monday’s sentencing, Milton continues to deny any wrongdoing and is currently out on bail while appealing the verdict. Meanwhile, Nikola shares are trading below $1.
5. Marvel Star’s Troubles
One of the major questions among Marvel fans was whether Disney would part ways with Jonathan Majors, the highly praised actor set to lead the next phase of the Marvel Cinematic Universe (MCU), following accusations of assaulting his girlfriend.
The answer turned out to be “yes.” Shortly after Majors was convicted in a New York court on charges of assault and harassment related to a March incident, Disney-owned Marvel Studios removed the “Creed III” star from his role as the villainous Kang the Conqueror.
Disney was already feeling the heat, including from its CEO, to rejuvenate the Marvel Cinematic Universe after a series of disappointing movie releases. Majors’ dismissal provides the entertainment giant with an opportunity to reconsider its approach and take a different path in an effort to regain viewership.
Summary
Investors face positive market trends with rising stock indicators. The U.S. military responds to Red Sea attacks, Apple halts sales due to a legal dispute, Nikola’s founder faces a four-year sentence, and Disney removes Jonathan Majors amid assault allegations. These events shape economic landscapes, technology markets, and entertainment industries.
