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Bitcoin experienced a remarkable surge in 2024, more than doubling in value, primarily due to the U.S. Securities and Exchange Commission's approval of ETFs tied to its spot price and the anticipation of regulatory easing with Donald Trump's potential return to the White House. The cryptocurrency reached a significant milestone of $100,000, fueling enthusiasm among its supporters. Analysts from Bernstein predict Bitcoin could hit $200,000 by late 2025. The sector's market value soared to $3.5 trillion, with companies like MicroStrategy, which has become the largest corporate holder of Bitcoin, seeing its shares increase nearly five-fold. The approval of Bitcoin ETFs marked a pivotal moment for the crypto industry, enhancing its legitimacy and appeal to traditional finance giants like BlackRock and Fidelity. However, not all crypto-related stocks benefited equally, with some miners facing challenges due to increased costs.
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Nvidia Corp. has voiced strong opposition to forthcoming US chip export restrictions, which are set to be announced before the transition to the Trump administration. These restrictions aim to limit the export of US artificial intelligence chips, particularly targeting countries like China and Russia, by imposing caps on sales both by country and by company. Nvidia's Vice President of Government Affairs, Ned Finkle, criticized the policy, suggesting it would not enhance national security but instead drive global markets towards alternative technologies. The proposed regulations would categorize countries into three tiers, with US allies having full access to American semiconductors, while most other nations would face stringent limits on computing power. This move, according to Nvidia, could harm the US economy and benefit its adversaries. Nvidia's CEO, Jensen Huang, expressed readiness to collaborate with the incoming Trump administration, highlighting the company's significant growth due to AI spending and its position as the world's most valuable chipmaker.
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The U.S. economy showed robust job growth in December, with the Bureau of Labor Statistics reporting an addition of 256,000 jobs, significantly higher than the anticipated 165,000. This growth was accompanied by a decrease in the unemployment rate to 4.1% from 4.2% the previous month. Wage growth aligned with expectations, increasing by 0.3% for the month, although it was slightly lower than the 0.4% seen in November. Despite these positive indicators, the labor market displayed signs of cooling, with the hiring rate and quits rate both declining. The labor force participation rate remained steady at 62.5%. Moreover, job openings rose to 8.1 million, marking the highest level since May 2023, suggesting a still tight labor market. However, private payroll additions slowed according to ADP's report, indicating a cautious approach in hiring. Federal Reserve Chair Jerome Powell has indicated that further cooling in the labor market isn't necessary to achieve the Fed's inflation targets, reflecting a nuanced view on economic policy amidst these labor market dynamics.
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Walgreens Boots Alliance reported a better-than-expected first-quarter adjusted profit, surpassing analysts' lowered expectations. Despite a significant drop in its share value in 2024, the company's stock rose 11.4% in premarket trading following the announcement. CEO Tim Wentworth's turnaround efforts, including multiple store closures, aim to improve profitability and cash flow. The company reported a loss on a reported basis due to costs from store closures and other charges, but excluding these, earnings were 51 cents per share, beating the consensus estimate of 37 cents. Walgreens reiterated its 2025 profit forecast and announced a $1 billion cost-cutting program along with plans to close over 1,200 stores. Despite these measures, the company faces ongoing challenges from low drug reimbursement rates and consumer behavior shifts, leading to speculation about potential sales to private equity firms.
