Preview of US Stock Market | The three major stock index futures rose together, senior investors called for selling the "seven giants", and US stocks closed on Wednesday.

Pre-market Market Trends 1. In pre-market trading on December 31 (Tuesday), stock futures for the three major US stock indices rose together. As of the time of writing, Dow futures were up 0.28%, S&P 500 index futures were up 0.34%, and Nasdaq futures were up 0.43%. 2. As of the time of writing, the German DAX index fell 0.38%, the UK's FTSE 100 index rose 0.66%, the French CAC40 index rose 0.68%, and the Euro Stoxx 50 index rose 0.84%. 3. As of the time of writing, WTI crude oil rose 0.80% to $71.56 per barrel, while Brent crude oil rose 0.73% to $74.53 per barrel. Market News Trading Alert: Due to the New Year holiday, the US stock market will be closed on January 1 for a day. January 1, 2025 (Wednesday) is New Year's Day, and the US stock market will be closed for one day. Trading will resume on January 2, 2025 (Thursday). Fed's Daley: Cryptocurrency should be seen as an independent asset, not to be confused with gold. San Francisco Fed President Daley said, "Cryptocurrency could be a currency. It could be an exchange medium. It could be a stock - a hedge or sometimes depreciating asset. We just need to define these terms. So I don't think it's gold. It sometimes has properties like gold, but I don't think so." Daley's assessment differs slightly from Fed Chair Powell, who earlier this month said, "People see bitcoin as a speculative asset. It's like gold, it's just virtual, it's digital. People don't see it as a means of payment or value store. It's very unstable. It's not a competitor to the dollar; it's a real competitor to gold." Veteran investor warns: Sell off the "Big Seven," US stocks set to plunge 10%. Max Wasserman, senior portfolio manager at Miramar Capital, suggests that investors reduce their exposure to the "Big Seven" US stocks and reallocate capital to "safer, lower valuation dividend growth stocks" to lower the risk of their portfolio in 2025. He expects the overall stock market to soon fall by 10%, leading to a drop in the "Big Seven." He points out that mega-cap stocks currently have asymmetric risk-rewards. Additionally, Wasserman recommends short-term investments in the bond market. "We see the yield on the 10-year US Treasury fluctuating above 5%, even higher. Market Truths That Defy Perception: Steepening yield curve, a unique positive for the Big Seven tech giants in the US stock market. 22V Research, a top Wall Street investment firm, says the steepening yield curve, covering various tenors of US Treasury bonds, is a powerful tailwind for the "Big Seven tech giants" in the US stock market. However, the firm warns that if the steepening of the yield curve slows significantly or shifts from steep to flat, the performance of the Big Seven and other large tech stocks could enter a downward adjustment phase. Therefore, according to 22V Research's team of strategists, a shift from the recent stagnation or flattening of the US Treasury yield curve to a steep upward slope might signal a new wave of upward momentum for the US stock market's "Big Seven tech giants." Historic Milestone! US ETF Assets Surpass $10 Trillion for the First Time. According to the latest data from Cerulli Associates, the assets under management for exchange-traded funds (ETFs) in the US surpassed $10 trillion in November. ETF inflows reached $156 billion this month, setting a record for monthly inflows. Cerulli notes that this level of activity is in line with the trading peaks usually seen at the end of the year. Morningstar research shows that this growth is being driven by the "Trump bump," with US funds (including ETFs and mutual funds) attracting $115 billion in inflows in November, the highest level since April 2021. US Big Banks Set for a "Bountiful" Year as Every Business Segment Blossoms? With the Federal Reserve's rate hikes expected to slow next year and a steeper yield curve continuing to support banks' net interest margin income, Visible Alpha's analysis of analysts indicates that revenue for all divisions of top global banks (except FICC trading) is expected to increase for the first time since 2021. Additionally, as of early December, the three-month US Treasury bill yield was lower than the 10-year Treasury bond yield for the first time since 2022, which may soon spark new interest in fixed-income products. Some analysts also suggest that the incoming Trump administration next year is likely to relax regulatory scrutiny on the financial sector, providing a further tailwind to the banking industry. Trump's Return to the White House Could Bring a New Variable, Bullish Bets on Oil Rise to Four-Month Highs. As investors prepare for the new year with Trump's return to the White House, bullish bets on oil have reached their highest level in four months. According to data from the US Commodity Futures Trading Commission, fund managers increased their net long positions in WTI crude oil by 21,694 contracts to 182,895 contracts in the week ending December 24. During that week, the range of fluctuations in crude oil futures was less than $3, indicating that the increase in long positions was due to changes in long-term positions rather than short-term price reactions. Stock News Tesla, Inc. (TSLA.US) Shanghai Energy Storage Super Factory Begins Trial Production. Tesla, Inc.'s Shanghai Energy Storage Super Factory project has started trial production and is expected to begin full production early next year. The factory successfully passed the completion acceptance on December 27, completing its construction in just 7 months from the start in May, setting a record for "Tesla, Inc. speed." After production, the output of large-scale energy storage battery Megapack will reach up to 10,000 units, with an energy storage capacity of nearly 40 gigawatt-hours. Additionally, Tesla, Inc. is recalling some China-made Model 3 and Model Y electric vehicles in China, totaling 77,650 vehicles, and recalling 63 imported.The Model S and Model X cars. In addition, Tesla, Inc. will announce fourth-quarter delivery data this Thursday. Analysts predict deliveries to be around 510,000 cars, slightly below the company's set target of 515,000 cars.Apple Inc. (AAPL.US) streaming platform Apple TV will be available for free this weekend. The company announced that its streaming service Apple TV will be offered for free from January 4th to January 5th, 2025. Apple TV is part of the company's services division, which saw record revenue in the fourth fiscal quarter ending in September 2024. The services division revenue increased by approximately 11.9% year-on-year, reaching $24.97 billion, but falling short of analysts' expectations of $25.27 billion. The services division also includes the App Store, Apple Music, Apple Pay, iCloud, and Apple TV+. Technical analysis raises concerns about NVIDIA Corporation (NVDA.US) stock price. Chart patterns are similar to those before the drastic 60% drop in 2018. Financial analyst Paul Franke believes that from a technical analysis perspective, NVIDIA Corporation may face a significant drop in the near future. The analyst believes that the company is also facing major operational risks from cyclical semiconductor demand, potential Trump tariffs, and future competition, especially from Alphabet's newly launched Willow quantum chip with artificial intelligence implications. Strong demand for flagship products leads to an increase in revenue expectations for EHang Holdings Ltd. Sponsored ADR Class A (EH.US) in Q4 and for the full year. EHang Holdings Ltd. Sponsored ADR Class A expects fourth quarter revenue to reach 162 million RMB, a 20% increase from the previously guided target of 135 million RMB, and a 187% year-on-year increase. For the 2024 fiscal year, the company expects total revenue to reach 454 million RMB, a 6% increase from the previous expectation of 427 million RMB, and a 287% year-on-year increase. This performance reflects stronger-than-expected demand for EHang's flagship product EH216-S autonomous passenger drone, highlighting the company's growth momentum and representing a key operational milestone. The stock rose nearly 7% in pre-market trading. Hong Kong steel structure contractor ONE Construction Group (ONEG.US) is set to debut tonight, with an IPO price of $4 per share. Hong Kong-based ONE Construction Group Limited announced the initial public offering of 1.75 million shares at a price of $4 per share. Underwriters have a 45-day option to purchase up to 15% of the total number of common shares. The company's common stock is expected to begin trading on the Nasdaq Capital Market on December 31, 2024. Important economic data and events preview: 5:30 AM Beijing time the next day - US API crude oil inventory change (in millions of barrels) for the week ending on December 27, US API gasoline inventory change (in millions of barrels) for the week ending on December 27.