Tech-led U.S. rally on deal and GPU wins
Key Points
- The Bank of Japan raised its benchmark rate, contributing to yen weakness and higher JGB yields that influenced Asia market flows.
- Reports that ByteDance signed binding agreements to form a U.S. joint venture with Oracle (ORCL), Silver Lake and MGX spurred a rally in Oracle as markets priced reduced regulatory overhang.
- CoreWeave jumped after being named a DOE Genesis Mission partner, driving heavy intraday buying in GPU-cloud names and boosting related tech performance.
- The Federal Reserve's request for information on a limited-purpose payment account prompted reassessments across payments and fintech firms for operational and compliance implications.
- The Bank of Russia cut its key rate, a calibrated easing that weighed on short-term ruble yields and influenced regional fixed-income flows.
Global Market Summary
US equities finished higher, led by technology: the Nasdaq (^IXIC) rose 1.19%, the S&P 500 (SPX) climbed 0.84% and the Dow (DJIA) added 0.38%. European benchmarks were mixed with the FTSE (UKX) up 0.61% and the CAC 40 (FRA40) essentially flat at 0.01%. In Asia the Nikkei (NKY) led gains, rising 1.03% while the Hang Seng (HSI) gained 0.75% and the Shanghai Composite (000001.SS) added 0.36%, as central bank moves and company headlines influenced flows.
Top Movers
Top sectors: Technology (VGT 1.87%), Industrials (XLI 0.97%) and Healthcare (XLV 0.83%) outperformed. Weakest sectors: Utilities (XLU -1.05%) and Consumer Staples (XLP -0.43%), with Energy (XLE -0.08%) largely flat. Notable stock movers: FOLD 30.37%, DJTWW 28.67% and CRWV 24.16% on the upside; LW -25.62% and NKE -10.84% led decliners.
Macro highlights
The Bank of Japan raised its benchmark rate by 25bp to around 0.75%, tightening domestic policy and contributing to yen weakness and higher JGB yields. The Bank of Russia cut its key rate by 50bp to 16.0%, a calibrated easing likely to weigh on short-term ruble (RUB) yields. US Existing Home Sales for November printed 4.13M (previous 4.11M), below a 4.2M consensus, tempering housing-related positioning.
News that moved markets
Reports that ByteDance signed binding agreements to form a U.S. joint venture led by Oracle (ORCL), Silver Lake and MGX spurred a rally in Oracle (ORCL) as markets priced reduced regulatory overhang. The Federal Reserve's request for information on a limited-purpose payment account prompted reassessments across payments and fintech firms for operational and compliance implications. CoreWeave (CRWV) jumped after being named a partner in the Department of Energy's Genesis Mission, driving heavy intraday buying in GPU-cloud names. Several completions were reported: Sienna completed an acquisition in the Greater Toronto Area, Stingray completed its acquisition of TuneIn, and FG Communities completed purchases of two communities in Winston‐Salem, NC. Among announced transactions, BioMarin said it will acquire Amicus Therapeutics for about $4.8 billion and MagIron announced the acquisition of the Reynolds Pellet Plant.
Upcoming session watchlist
- GB Current Account (Q3) — consensus £-21.5B vs £-28.9B prior, Dec 22, 07:00 AM | Reflects external demand and helps gauge growth prospects.
- ES Balance of Trade (OCT) — forecast €-6.4B vs €-6B prior, Dec 22, 09:00 AM | Indicates goods demand and contribution to near-term growth outlook.
- US Chicago Fed National Activity Index (SEP) — forecast -0.4 vs -0.12 prior, Dec 22, 01:30 PM | Summarizes national economic activity and near-term growth momentum.
Key Takeaways
- U.S. equities finished higher with technology leadership pushing the Nasdaq higher and lifting the S&P 500 (SPX) and Dow to positive closes.
- Technology, Industrials and Healthcare outperformed while Utilities and Consumer Staples lagged, with Energy largely flat across the session.
- M&A and transaction headlines, including completions and announced deals such as BioMarin's planned Amicus acquisition and MagIron's plant purchase, drove notable stock moves.
- Asian markets gained led by the Nikkei as central bank moves and company headlines influenced flows, while European benchmarks finished mixed.
References
- 1. https://www.federalreserve.gov/newsevents/pressreleases/bcreg20251219a.htm
- 2. https://www.cnbc.com/2025/12/19/stocks-making-the-biggest-moves-premarket-orcl-crwv-nke-coin.html
- 3. https://x.com/BIS_org/status/2002002256523100602
- 4. https://x.com/Bank_of_Japan_e/status/2001854992995795330
- 5. https://x.com/RapidResponse47/status/2002044609531142456
- 6. https://www.reuters.com/markets/europe/russian-central-bank-cuts-key-rate-16-putin-speaks-2025-12-19/
- 7. https://x.com/RapidResponse47/status/2002055538625126794
- 8. https://x.com/WhiteHouse/status/2002117050081346045
- 9. https://x.com/Barchart/status/2002087270661210236
- 10. https://x.com/Barchart/status/2002102451697320312
- 11. https://x.com/Bank_of_Japan_e/status/2001985972469149868
- 12. https://x.com/WhiteHouse/status/2001832451765674125
- 13. https://x.com/ecb/status/2001925894416535623
- 14. https://x.com/Barchart/status/2001871740280930609
- 15. https://x.com/ENERGY/status/2002057429979365801
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