New Chapter in AI Boom Revives Megacaps

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Check out our next “State of the Market,” on Monday, 12/16.

Sizing Up the S&P 500

• S&P 500 approaches 6,100 after holding last week’s low
• RSI near overbought is potentially consistent with uptrends
• Breadth narrows sharply as megacaps reclaim leadership
• S&P 500 potentially headed for back-to-back +20% years for 1st time since 1997-1998.
• VIX remaining under 15

Megacap AI News

• Gene Munster: GM’s exit from Robotaxis boosts TSLA/GOOGL, hurts UBER/LYFT
• Wedbush: “Christmas came early for the tech world” with Lina Khan exiting FTC
• The Information: AAPL & AVGO developing AI server chips
• Apple Intelligence adds ChatGPT to Siri in latest iOS update
• GOOGL jumps on fewer regulatory fears, Willow quantum chip
• RDDT emerges as AI player with licensed content for model training
• AMZN bolsters AI with new products, partnerships
• CRM jumps on Agentforce traction

Other Points

• November CPI inline. Owners’ equivalent rent and rent climbs at slowest pace since April 2021.
• Gold jumps as PBoC buys 5 tons of bullion
• Barclays goes negative on housing amid incentives
• Greenhaus of Solus, Stoltfus of Oppenheimer, Harvey of Wells Fargo see SPX above 7,000 next year
• Jefferies targets 2715 (+13%) on Russell 2000 in 2025
• Post-election confidence bump:
  • NFIB: Small business sentiment highest in 3-1/2 years
  • NY Fed: Consumers expect higher inflation but also higher earnings

Upcoming Events

• Earnings this afternoon: AVGO COST
• Tuesday 12/17: Retail sales
• Wednesday 12/18: Housing starts/building permits, **FOMC** + Dot plot
  • Earnings: MU

Standardized Performances for ETF mentioned above

Performance data shown reflects past performance and is no guarantee of future performance. The information provided is not meant to predict or project the performance of a specific investment or investment strategy and current performance may be lower or higher than the performance data shown. Accordingly, this information should not be relied upon when making an investment decision. 

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