The US stock market reached record highs on Wednesday, fueled by positive remarks from Federal Reserve Chair Jerome Powell about the robust health of the US economy. The tech-focused Nasdaq Composite index surged 1.3%, closing at 19,735.12. Industry giants like Amazon and Apple also hit intraday all-time highs.
Table Content:
Nvidia’s Potential Blackwell Chip Production in Arizona
Chipmaker Nvidia closed Wednesday’s session with a 3.5% gain, trading near its previous highs. This positive momentum followed a Reuters report indicating that Nvidia is in talks with Taiwan Semiconductor Manufacturing Co (TSMC) to produce its AI Blackwell chips at TSMC’s new Arizona plant. Sources suggest that TSMC is preparing to commence production early next year. TSMC’s shares listed in Taiwan saw a 0.5% increase on Thursday. At the time of this report, Nvidia has not responded to requests for comment, while TSMC declined to comment.
Coinbase Shares Surge with Bitcoin’s Record-Breaking Climb
Cryptocurrency exchange platform Coinbase experienced a 7% share surge on Wednesday, further amplified by a 3% increase in pre-market trading on Thursday. This surge coincided with Bitcoin surpassing the $100,000 milestone for the first time late Wednesday. Bitcoin continued its upward trajectory on Thursday, trading at over $102,000, marking a nearly 50% increase in the past month. The cryptocurrency market received an additional boost with the news that crypto advocate Paul Atkins is President-elect Donald Trump’s nominee to replace Gary Gensler as chair of the Securities and Exchange Commission (SEC).
Matt Britzman, senior equity analyst at Hargreaves Lansdown, commented on Bitcoin’s rising influence, stating, “While questions linger over Bitcoin’s role as a reliable store of value, its speculative allure and the pace of crypto innovation are becoming hard to ignore. Institutional interest and regulatory shifts are adding legitimacy, turning what once seemed like a fringe asset into a force reshaping finance.”
Shell and Equinor Merge UK Offshore Assets
Shell and Equinor announced a joint venture to combine their UK offshore oil and gas assets, creating the largest independent producer in the UK North Sea. The new entity, equally owned by both companies, is expected to be operational by the end of 2025, pending regulatory approvals. Shell’s shares dipped 1% following the announcement, while Equinor’s New York-listed shares remained relatively stable.
Dan Coatsworth, investment analyst at AJ Bell, provided context for the merger: “The big oil companies have been managing their gradual exit from the UK North Sea for years…Shell’s tie-up of its remaining North Sea assets with those of Norway’s Equinor should be seen in this context…”
Vodafone-Three Merger Receives Green Light
The UK’s Competition and Markets Authority approved the £16.5bn merger of Vodafone and Three, paving the way for the UK’s largest mobile network. Vodafone’s shares rose 1% following the news.
However, Dan Coatsworth noted that the approval comes with conditions, including substantial investments in the UK’s 5G network and a three-year tariff cap. He added that Vodafone faces other challenges, such as weak performance in the German market due to regulatory changes.
Frasers Group Issues Profit Warning
Frasers Group, owned by Mike Ashley, saw its shares plummet 13% after issuing a profit warning for the year. The retail group reported an 8% decline in revenue and a 1.5% drop in adjusted profit before tax in the first half of its 2025 fiscal year. Frasers cited challenging trading conditions and weakened consumer confidence following the autumn budget. The company adjusted its profit forecast to £550m-£600m for the year, down from the previous estimate of £575m-£625m.
Derren Nathan, head of equity research at Hargreaves Lansdown, commented: “Investors will be hoping that the revised outlook will be enough to capture any further jitters over the vital Christmas trading period…Despite the downgrade, profits are still expected to be in growth territory this year.”
Conclusion: Market Volatility and Shifting Landscapes
This week’s market activity highlights both opportunities and challenges across various sectors. Nvidia’s potential expansion in AI chip production, Bitcoin’s record-breaking surge, and major mergers in the telecommunications and energy sectors signal significant shifts in the economic landscape. However, profit warnings from companies like Frasers Group underscore the ongoing uncertainties and the need for careful analysis in navigating the current market environment. Hyperloop Capital Insights will continue to monitor these developments and provide timely analysis to inform investment strategies.
