Fed Predictions & Tech Expert Dan Ives on Bitcoin and Bull Markets
Money Rehab with Nicole Lapin
Deep Dive
What is the current state of the stock market as of December 2024?
The S&P 500 is up 27% for the year, with the NASDAQ hitting 20,000, the Russell at record highs, and the Dow at 45,000. Key tech stocks like Netflix, Amazon, Google, Apple, and Meta reached record highs during the year.
Why did the market experience a pullback in early December 2024?
The market pulled back due to Nvidia being targeted by the Chinese government for monopoly practices, which affected the entire market despite strong economic data.
What is the significance of the Santa Claus rally in the stock market?
The Santa Claus rally is a typical year-end upswing in the market, historically seen in the weeks leading up to the end of the year. It has occurred nine times out of nine during presidential election cycles.
What is the likelihood of the Fed cutting interest rates in their next meeting?
There is an 88% chance that the Fed will cut interest rates, which could catalyze a Santa Claus rally and a record close for 2024.
What did Trump announce during his visit to the New York Stock Exchange?
Trump announced the creation of a Bitcoin reserve for the U.S., similar to the existing petroleum reserves, aiming to establish the U.S. as a 'kingdom of crypto'.
How has the AI revolution impacted the tech sector in 2024?
The AI revolution has driven significant growth in the tech sector, with companies like Nvidia, Microsoft, and Apple benefiting. The market is in the third inning of a multi-year bull market driven by AI advancements.
What is Dan Ives' prediction for the stock market in 2025?
Dan Ives predicts the S&P 500 could reach 7,500, and the NASDAQ could hit 23,500 to 24,000, driven by continued AI advancements and a strong first half of the year.
What role does Elon Musk play in the new administration's tech policy?
Elon Musk is part of the Trump administration's inner circle, which helps protect key tech companies like Tesla from potential regulatory threats and supports the autonomous vehicle industry.
How does the removal of Khan from the FTC impact the market?
The removal of Khan from the FTC is expected to lead to more mergers and acquisitions in the tech sector, as the new leadership will be more favorable to deal-making.
What are the key risks for the market under the new administration?
The key risks include potential tariffs on China and the rhetoric of hawkish politicians like Rubio and Navarro, though these are expected to be tempered to avoid negatively impacting the AI and tech sectors.
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