Despite widespread anticipation that semiconductor titan Nvidia’s quarterly results would dictate Wall Street’s year-end trajectory, the stock market delivered a robust weekly rebound, even without the help of the AI darling.
Nvidia beat analyst expectations on both earnings and revenue for the third quarter, but its stock remained flat for the week.
Alphabet Inc., the parent company of Google, faced sharp turbulence. Shares tumbled after the U.S. Department of Justice called for the divestiture of web browser Chrome in a bid to curb Google’s dominance in search and digital advertising.
The sell-off wiped out over $120 billion in market capitalization on Thursday alone.
A recent Benzinga poll indicates that 64% of respondents oppose breaking up Alphabet, with YouTube viewed as the company’s most valuable asset.
On the economic front, U.S. private sector activity expanded significantly in November, as reflected in S&P Global’s Purchasing Managers’ Index surveys. The services sector, in particular, surged at its fastest pace since March 2022, while price pressures continued to recede, creating less headwinds for the Federal Reserve.
GM eyes Formula One
General Motors is reportedly preparing to enter Formula One racing in 2026, potentially partnering with Andretti Autosport. This move would mark GM's first foray into F1, aligning with its global motorsport expansion strategy. If approved, it would make GM the second American company (behind Haas F1, founded by industrialist Gene Haas) to join in the series. An earlier bid by Andretti Autosport was rejected.
Cryptocurrency, dollar gain
Bitcoin’s rally shows no signs of cooling, with the cryptocurrency notching its fourth consecutive week of gains and hovering around the historic $100,000 threshold. With President-elect Donald Trump heading back to the White House, Cathie Wood, of Ark Invest, anticipates the administration will provide regulatory clarity for Bitcoin and other digital assets, potentially incorporating them into the Treasury's strategic reserve.
More: U-M forecasts see bigger deficits under Trump, but no economic catastrophes
The U.S. dollar also maintained its upward momentum, rising for the eighth straight week to reach two-year highs. This latest rally, however, stemmed largely from external turmoil, as escalating geopolitical tensions between Russia and Ukraine, coupled with worsening economic momentum in Europe, triggered sharp weekly sell-offs in the euro and the British pound.
Drilling vs renewables
Trump advocates for increased fossil fuel production with his "drill, baby, drill" policy. In contrast, Elon Musk, co-leader of the proposed Department of Government Efficiency (DOGE), envisions a future dominated by solar energy. Analysts with the multinational financial services company UBS recommend investors consider renewable energy stocks following their election-induced market dip.
Benzinga is a financial news and data company headquartered in Detroit.
This article originally appeared on Detroit Free Press: Call to sell off web browser costs Google parent Alphabet $120B