Preview of US Stock Market | Three major stock index futures fell together, precious metals all declined, and the market will be closed on January 1st.

Pre-market market trends 1. In pre-market trading on December 31 (Wednesday), the futures of the three major stock indexes in the US all fell. As of the time of writing, the Dow Jones Industrial Average futures fell by 0.15%, the S&P 500 index futures fell by 0.21%, and the Nasdaq futures fell by 0.34%. 2. As of the time of writing, the German DAX index rose by 0.57%, the UK FTSE 100 index fell by 0.24%, the French CAC40 index fell by 0.58%, and the European Stoxx 50 index rose by 0.76%. 3. As of the time of writing, WTI crude oil rose by 0.29% to $58.12 per barrel. Brent crude oil rose by 0.24% to $61.48 per barrel. Market news Precious metals are down across the board. As of the time of writing, gold futures fell by 1.5% to $4320.7 per ounce; spot gold fell by 0.70% to $4308.6 per ounce. Silver futures fell by over 8% to $71.35 per ounce; spot silver fell by nearly 6% to $71.75 per ounce. Platinum futures fell by nearly 10% to $2031.2 per ounce; spot platinum fell by nearly 8% to $2008.9 per ounce. Palladium futures fell by over 6% to $1613.3 per ounce; spot palladium fell by nearly 3% to $1579.3 per ounce. "Others are greedy, I am fearful"? While Wall Street is bullish, experts warn of a more than 10% correction in the US stock market. Professional investor Dividend Seeker predicts that large-cap US stocks, particularly the S&P 500 index, could experience a 10% or more correction in early or mid-2026. The overall bullish sentiment in the market and the higher valuation of the S&P 500 index compared to other global indices support the cautious outlook. However, the analyst believes that the potential weakness in the US stock market presents a buying opportunity, and is adjusting his portfolio accordingly. Additionally, to prepare for this correction, the analyst prefers investing in UK and European stocks, gold, and bonds. Continued prosperity in the US stock market! Citigroup optimistically predicts that tech stocks will lead next year, with other sectors following suit. Scott Kronert, the head of US stock strategy at Citigroup, believes that the market is currently in a "prosperity phase" rather than a "bubble phase." Looking ahead to the new year, he maintains an optimistic outlook based on strong earnings expectations and the expected diffusion of industry sectors. While acknowledging that investors may be paying a premium for next year's fundamentals, Kronert emphasizes that the overall market environment remains "extremely constructive" with positive momentum. Citigroup's earnings forecast is at the high end of analysts' consensus, with their model predicting a 3.2% growth in corporate earnings next year. The core drivers of this optimistic forecast are the continued outperformance of large tech stocks and the potential for the rally to spread to recently lagging sectors. Nearly 20% plunge this year! International oil prices may see their worst annual performance since the pandemic, with oversupply casting a shadow over the market in the new year. Due to ongoing concerns about oversupply, international oil prices are heading towards their most severe annual decline since the outbreak of the pandemic in 2020. This bearish factor not only dominates current market sentiment but will also exert pressure on trading trends in the new year. Since the beginning of the year, OPEC+ and its competitors have continuously increased supply, coupled with a slowdown in global crude oil demand, leading to a significant drop in international oil prices. Mainstream institutions, including the International Energy Agency (IEA), predict a significant oversupply in the oil market next year; even the traditionally optimistic OPEC Secretariat expects the market to be slightly oversupplied. The US stock market will be closed on January 1st for New Year's Day. Due to the New Year's Day holiday, the US stock market will be closed on January 1, 2026 (Thursday), and will resume trading on January 2 (Friday). Stock-specific news Reports state that a Chinese tech giant has placed orders for over 2 million H200 chips, prompting NVIDIA Corporation (NVDA.US) to seek emergency production expansion from Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US). Sources claim that NVIDIA Corporation is working to meet strong demand from Chinese tech companies for its H200 artificial intelligence chips and has contacted contract manufacturer Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR to increase production. Two sources mentioned that Chinese tech companies have ordered over 2 million H200 chips for 2026, while NVIDIA Corporation currently has a stock of only 700,000 chips. The specific amount of additional orders that NVIDIA Corporation plans to place with Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR is currently unclear. A third source revealed that NVIDIA Corporation has requested Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR to start producing additional chips, with production expected to begin in the second quarter of 2026. Retreat or lie low? After critiquing that Tesla, Inc. (TSLA.US) is overvalued, "The Big Short" figure denies shorting the stock. Michael Burry, the real-life prototype for the character in "The Big Short," has denied shorting the stock of Tesla, Inc., despite earlier this month calling the company's valuation "absurdly high." Burry responded to a user on the social platform letter X asking him whether he would short Tesla, Inc. by stating, "I'm not shorting (Tesla, Inc.)." Burry had previously turned his criticism towards Tesla, Inc. at the end of November, writing in his column that Tesla, Inc.'s market value was "ridiculously overvalued" for quite some time. Burry not only questioned Tesla, Inc.'s valuation but also highlighted issues with the company's ownership structure and business strategy. He pointed out that if Elon Musk's proposed $1 trillion compensation plan goes through, it will further dilute the existing shareholders' equity of Tesla, Inc., weakening the per-share earnings value. Hollywood's century-old acquisition saga continues! Warner Bros. (WBD.US) plans to reject Paramount's (PSKY.US) latest offer again. Sources reveal that Warner Bros. plans to reject Paramount's revised acquisition invitation once again. Warner Bros. had previously rejected Paramount's offer, considering it inferior to the proposal from streaming giant Netflix (NFLX.US). Insiders state that Warner Bros.' board remains unmoved and is waiting for Paramount to improve the financial terms of its offer. Several shareholders expect Paramount to provide more funding. The board is also concerned that a deal with Paramount could lead to Warner Bros. being unable to manage its debt without the prior approval of the Ellison family, and Paramount has yet to guarantee that it will cover Warner Bros.' termination fee payable to Netflix. In a predicament but turned into a negotiation chip! Boeing Company (BA.US) may be the next target for the Trump administration's "strategic investment." This year, the Trump administration has reached a series of deals to invest in companies critical to national security and the supply chain. This "acquisition strategy for industry equity" is expected to continue in 2026, with the next potential target being the aircraft manufacturer Boeing Company. Boeing Company is part of the duopoly in the global commercial aircraft market, is a major military equipment supplier, and is the largest single exporter in the US. At the same time, the company is facing challenges due to a series of long-term setbacks related to fatal accidents involving its aircraft. The difficulties faced by the company provide ample negotiation leverage for the Trump administration to invest in it. Accused of violating child privacy laws, Walt Disney Company (DIS.US) agrees to pay $10 million to settle with the US Department of Justice. The US Department of Justice revealed that Walt Disney Company has agreed to pay a $10 million civil penalty as part of a settlement agreement to resolve allegations of violating child privacy laws in some videos uploaded to YouTube. A complaint from the Justice Department stated that Walt Disney Company Global Services and Walt Disney Company Entertainment Operations failed to correctly label some videos uploaded to YouTube as "child-directed." This allowed Walt Disney Company and its agent to collect personal data on children under 13 and use this information for targeted advertising.