5 Things to Watch Before the Market Opens Friday

Here are five key things investors need to know to start the trading day:

U.S. stock futures traded with modest gains this morning as markets reopened after the Christmas holiday, signaling a potential continuation of upward momentum for the major averages. Despite the quiet start, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite are all poised for solid weekly gains, building on recent record-setting performances.

The S&P 500 has climbed approximately 1.4% this week, having achieved new intraday and closing highs on Wednesday. The Dow and Nasdaq are also tracking gains exceeding 1% week-to-date. This period often sees robust market performance, with historical data indicating that the S&P 500 has averaged a 1.3% gain in the final five trading days of the year and the first two of the new year, a trend known as the Santa Claus Rally.

Precious metals have also seen significant upward movement, with gold and silver touching fresh highs, reflecting ongoing investor interest in safe-haven assets amid global economic uncertainties. Meanwhile, key international markets in the U.K., Australia, and Hong Kong remain closed for Boxing Day.

In a significant move to fortify its artificial intelligence hardware leadership, Nvidia has reportedly agreed to acquire assets from chip startup Groq for approximately $20 billion in cash. This deal, confirmed to be Nvidia’s largest acquisition to date, signals a strategic push to enhance its capabilities in the rapidly evolving AI landscape.

The transaction goes beyond a simple asset purchase. In addition to the non-exclusive licensing of technology, Groq’s founder and CEO, Jonathan Ross, along with other senior leadership, are set to join Nvidia. This integration is expected to accelerate the development and deployment of Groq’s innovative chip architecture, particularly its LPU (Language Processing Unit), designed for high-performance AI inference workloads.

This acquisition marks a substantial increase in Nvidia’s M&A activity. Prior to this, the company’s largest deal was the nearly $7 billion acquisition of Mellanox in 2019, a move that bolstered its networking and high-performance computing offerings. The Groq deal underscores Nvidia’s aggressive strategy to maintain its dominant position by securing cutting-edge technology and top talent in the fiercely competitive AI semiconductor market, where demand for specialized processing power continues to surge.

In a move that could address long-standing user desires, Google appears to be testing the ability for users to change their @gmail.com email addresses without creating an entirely new account. This feature, if widely rolled out, would allow individuals to update their primary email contact, potentially shedding outdated or unprofessional addresses acquired in their earlier online lives.

Currently, this functionality is reportedly visible on the Hindi version of Google’s account help page. This localized appearance suggests that the feature may be initially piloted or rolled out in India or other Hindi-speaking regions. Such a phased approach allows Google to gather user feedback and refine the process before a global launch, ensuring a smoother experience for a broader user base.

The ability to change an existing Gmail address while retaining all associated data, services, and the established contact history would be a significant enhancement to user account management. It addresses a common pain point and demonstrates Google’s ongoing efforts to adapt its core services to evolving user needs and preferences.

Alphabet’s autonomous vehicle subsidiary, Waymo, temporarily suspended its robotaxi service in the San Francisco Bay Area on Thursday. The precautionary pause was implemented ahead of anticipated heavy rainfall and potential flash flood warnings, underscoring the company’s commitment to safety in challenging weather scenarios.

This incident follows a recent period of operational adjustments for Waymo. Just days prior, the company announced plans to upgrade its fleet to enhance navigation capabilities during power outages. This update was prompted by an earlier service disruption on December 20th, when a city-wide blackout caused several Waymo vehicles to halt mid-traffic, contributing to traffic congestion in San Francisco.

The recurring need to pause operations due to external factors, such as severe weather or infrastructure failures, highlights the ongoing complexities and developmental hurdles for fully autonomous ride-hailing services. While Waymo continues to refine its technology, these events illustrate the critical importance of robust operational protocols and the need for redundancy in navigation systems to ensure reliability in diverse real-world conditions.

Consumers and retailers alike are facing escalating prices for leather goods, including footwear, handbags, and furniture. This trend is largely attributed to a confluence of factors, notably ongoing tariff implementations and persistent supply chain bottlenecks that have disrupted global trade flows.

Companies like Tapestry, the parent company of well-known brands such as Coach and Kate Spade, have already reported significant cost increases. Executives have indicated that tariff-related expenses could amount to as much as $160 million, impacting profit margins. The added cost of importing raw materials and finished products, coupled with increased logistical expenses, is being passed down the supply chain.

Analysis from the Yale Budget Lab suggests that prices for leather goods are likely to remain elevated, with an estimated increase of nearly 22% over the next one to two years. This projection is heavily influenced by substantial tariff exposure, particularly concerning trade with China, Vietnam, Italy, and India, key regions in the global leather supply chain. The continued pressure from trade policies and logistical challenges suggests that consumers may need to adjust their expectations regarding the affordability of these premium goods.

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