Trending Market News

Furniture retailer stocks including RH, Wayfair, and Williams-Sonoma rose in early Friday trading after President Trump delayed planned tariff increases on upholstered furniture, kitchen cabinets, and vanities for one year. The duties will remain at 25% instead of rising to 30% as previously scheduled for Thursday, with Trump citing ongoing trade discussions as the reason for the pause.

• Wayfair surged over 125% in 2025 and gained more than 2% on the news, while luxury retailer RH added nearly 5% despite being down over 50% for the year
• The furniture sector has faced significant pressure from tariff concerns, with RH's CEO notably reacting with an expletive during an April earnings call as the stock tanked
• Retailers have seen divergent performance based on their positioning, with value-focused players like Wayfair outperforming luxury brands amid consumer spending shifts

China's BYD is set to overtake Tesla as the world's largest electric vehicle seller for 2025, with BYD reporting 2.26 million battery-powered car sales compared to Tesla's expected 1.6 million deliveries. This milestone marks a dramatic reversal from 2011 when Elon Musk publicly dismissed BYD's products, and comes as Tesla faces its first annual sales decline amid political controversies affecting the brand.

• BYD's sales rose 28% to 2.26 million units while Tesla deliveries are expected to drop 8% year-over-year to 1.6 million vehicles
• Tesla's stock has recently recovered after announcing driverless vehicle tests in Austin, despite earlier declines linked to Musk's political activities
• The shift represents a major victory for China's EV industry as BYD transforms from a company once mocked by Musk into the global market leader

The Pentagon awarded Lockheed Martin a $328.5 million contract to supply Taiwan's Air Force with 55 Infrared Search and Track Legion Enhanced Sensor pods and related equipment. This contract addresses Taiwan's urgent operational needs amid escalating military pressure from China, which staged massive military drills around the island just days before the announcement.

• $157.3 million in foreign military sales funds obligated immediately, with work expected to be completed by June 2031 in Orlando, Florida
• Contract follows the Biden administration's record $11.1 billion weapons package to Taiwan announced in mid-December
• Taiwan kept its emergency maritime response center running Wednesday to monitor Chinese naval maneuvers following China's latest military drills

The Pentagon awarded Boeing a $2.7 billion contract for post-production support services for Apache helicopters. This follows a separate $858 million contract awarded last month for new Apache AH-64E attack helicopters and training equipment, demonstrating continued U.S. military investment in the Apache program.

• $2.7 billion contract specifically covers post-production support services for existing Apache fleet
• Deal comes one month after Boeing secured additional $858 million for new Apache AH-64E helicopters and Longbow crew trainers
• Contracts reinforce Boeing's position as primary supplier for U.S. Army attack helicopter capabilities

The FDA has declined to approve Outlook Therapeutics' drug for treating an eye disease, dealing another setback to the company's extended efforts to secure market approval. This rejection represents a continued challenge for the drugmaker as it attempts to bring its treatment to patients.

• The FDA's rejection marks 'another setback' to Outlook's 'prolonged effort' to bring the treatment to market, suggesting previous failed attempts
• The specific eye disease being targeted and reasons for FDA rejection were not disclosed in the announcement
• The decision comes during a period of increased FDA activity, with multiple drug approvals and rejections announced in late December 2025

The U.S. Department of Commerce has granted TSMC an annual export license allowing the chipmaker to import U.S.-controlled manufacturing equipment to its Nanjing, China facilities without requiring individual vendor licenses. This approval, issued before the December 31, 2025 expiration of existing authorizations, ensures TSMC can maintain uninterrupted operations at its Chinese fab amid ongoing U.S.-China tech tensions.

• The annual license replaces the need for individual vendor licenses for U.S. export-controlled items, streamlining TSMC's supply chain for its Nanjing operations
• The approval was granted before the expiration of TSMC's existing Validated End-User (VEU) authorization, preventing potential disruptions to production and deliveries
• This move signals continued U.S. willingness to allow limited semiconductor cooperation with China despite broader export restrictions on advanced chip technology

Disney's 'Zootopia 2' has become the highest-grossing film ever from Walt Disney Animation Studios, surpassing 'Frozen 2' with $1.46 billion in global box office receipts. The sequel's exceptional performance in China, where it captured 95% of opening weekend ticket sales and has earned over $560 million, has driven its success amid a challenging year for global cinema that continues to lag pre-pandemic levels.

• The film is the fifth Disney Animation Studios release to cross $1 billion globally, achieving $556 million in its opening weekend worldwide
• China has been the standout market with over $560 million in revenue, where the film dominated with 95% of all movie ticket sales during its opening weekend
• The success provides crucial relief for Disney and theater owners during Hollywood's second-busiest moviegoing season as global box office remains below 2019 levels

SoftBank-backed Oyo Hotels' parent company Prism has confidentially filed for an IPO in India, seeking a valuation of $7-8 billion. This marks the hospitality firm's second attempt at going public after withdrawing its 2021 IPO plans that targeted a $12 billion valuation.

• Oyo posted 16% revenue growth to 62.53 billion rupees ($695.92 million) for FY2025, with net profit rising 6.6% to 2.45 billion rupees
• India emerged as the world's second-largest primary equity market in 2025, raising $21.6 billion through 352 deals, surpassing 2024's record $20.5 billion
• The filing follows other Indian tech companies like Zepto pursuing IPOs, indicating sustained investor appetite for Indian equity offerings

Financial firms borrowed a record $74.6 billion from the Federal Reserve Bank of New York's Standing Repo Facility on Wednesday, December 31, 2025, marking the highest usage ever as banks managed year-end liquidity needs. The borrowing, collateralized with Treasury bonds and mortgage-backed securities, exceeded the previous record of $50.35 billion from October 31 and reflects typical year-end pressures when lenders pull back.

• Collateral breakdown: $31.5 billion in Treasury bonds and $43.1 billion in mortgage-backed securities backed the loans
• NY Fed has been actively encouraging firms to use the facility after initial hesitancy, with officials noting 'no reason why sizeable participation cannot take place'
• Market expects borrowing surge to dissipate in coming days as normal trading conditions return after year-end

Federal prosecutors uncovered 'Operation Gatekeeper,' a smuggling ring that allegedly attempted to export $160 million worth of export-controlled Nvidia H100 and H200 GPUs to China between October 2024 and May 2025. The investigation revealed an underground network involving fake companies, mislabeled shipments, and a New Jersey warehouse operation, highlighting the intense competition for AI chips between the U.S. and China.

• President Trump's announcement allowing H200 GPU exports to China (with 25% U.S. cut) on the same day as the bust undermined prosecutors' national security arguments
• China remains heavily dependent on Nvidia technology with over 60% of leading Chinese AI models using Nvidia hardware despite local chip development efforts
• Experts estimate between 10,000 and several hundred thousand AI chips were smuggled to China in 2024 alone, with continued smuggling expected despite policy changes

Drugmakers plan to raise US prices on at least 350 branded medications in 2026, including COVID vaccines and cancer treatments, with a median increase of 4% despite Trump administration pressure for cuts. The increases affect companies that recently struck pricing deals with the government, raising questions about the effectiveness of efforts to reduce drug costs. US patients continue to pay nearly three times more for prescriptions than other developed nations.

• Price hikes include vaccines for COVID, RSV, shingles and cancer drug Ibrance, with Pfizer announcing the most increases (80 drugs) including a 15% hike for COVID vaccine Comirnaty
• Five drugmakers raising prices (Pfizer, Sanofi, Boehringer Ingelheim, Novartis, GSK) had just struck deals with Trump administration on Medicaid and cash-pay prices for some medicines
• Boehringer Ingelheim plans 40%+ cuts on diabetes drug Jardiance, which had its Medicare price slashed by two-thirds in government negotiations

Michael Burry, the investor famous for predicting the 2008 housing crisis, denied shorting Tesla stock despite recently calling it 'ridiculously overvalued.' His clarification came via social media after Tesla published sales estimates showing an expected 8% decline in 2025 vehicle deliveries, which would mark the company's first annual sales drop.

• Burry responded 'I am not short' to questions about betting against Tesla, contradicting speculation after his valuation criticism
• Tesla's compiled estimate shows 1.6 million vehicle deliveries expected in 2025, down from 2024 levels
• The company's stock recently hit an all-time high of $489.88 despite facing competition from Chinese EV makers

Britain's Harbour Energy has been named operator of Mexico's Zama oilfield, which contains approximately 750 million barrels of oil equivalent resources and was one of Mexico's biggest private company oil discoveries in decades. The appointment follows Harbour's recent $3.2 billion acquisition of LLOG and positions the company as operator of two of Mexico's most important offshore oil projects.

• Harbour holds a 32.22% operating interest in Zama, with partners including Pemex (previous operator), Grupo Carso, and Talos Energy having options to appoint key personnel to the project team
• The company is also operator of the nearby Kan field with a 70% interest alongside TotalEnergies, expanding its Mexican offshore portfolio
• Once operational, Zama will contribute materially to both Mexico's domestic energy supply and Harbour's production levels

The Federal Reserve's December meeting minutes revealed an unusually sharp division among officials over cutting interest rates, with some members viewing the decision as 'finely balanced' despite ultimately approving a quarter-point reduction. The split reflects conflicting concerns about stalling inflation progress versus a weakening labor market, with projections now showing only one rate cut expected for 2025.

• Six officials opposed the December rate cut with two dissenting as voting members, marking the second consecutive meeting with dissents in both hawkish and dovish directions
• The Fed lowered rates to 3.5%-3.75% range but signaled a likely pause ahead, with new projections showing just one cut expected next year compared to multiple cuts previously anticipated
• Officials cited conflicting pressures: some worried about stalled progress toward 2% inflation while others focused on stabilizing the labor market amid slowing job creation

Nvidia is in advanced negotiations to acquire Israeli AI startup AI21 Labs for between $2-3 billion, according to Calcalist financial daily. The deal reflects Nvidia's strategic expansion in Israel, where CEO Jensen Huang calls the company's 'second home,' with the primary motivation appearing to be AI21's workforce of 200 employees possessing rare AI expertise.

• AI21 Labs, founded in 2017 and valued at $1.4 billion in its 2023 funding round, specializes in AI development with most employees holding advanced degrees
• Nvidia is already planning a massive $430 million R&D campus near Haifa spanning 1.7 million square feet, with construction beginning in 2027
• The acquisition would strengthen Nvidia's position as the world's most valuable company at over $4 trillion market cap amid the AI boom

Swedish defence company Saab has secured a $1.34 billion order from France for two GlobalEye surveillance aircraft, with deliveries scheduled between 2029 and 2032. The deal represents a significant win for Saab's aerospace division and includes an option for France to purchase two additional planes.

• Contract valued at 12.3 billion Swedish crowns ($1.34 billion) with delivery timeline spanning 2029-2032
• Deal includes option for France to acquire two more GlobalEye aircraft, potentially doubling the order value
• GlobalEye is an advanced airborne early warning and control system used for surveillance and reconnaissance

Warner Bros Discovery is expected to reject Paramount's $108.4 billion hostile takeover bid despite Oracle co-founder Larry Ellison's $40.4 billion personal guarantee to shore up financing. The rejection would allow Warner Bros to continue pursuing its own acquisition talks with Netflix.

• Paramount attempted to sweeten its offer by having Ellison personally guarantee equity financing and raising the regulatory reverse termination fee
• Warner Bros appears unconvinced by the revised terms, citing concerns over valuation, strategic fit and deal certainty
• The decision keeps Warner Bros on track to negotiate a rival cash-and-stock deal with Netflix instead

SoftBank has completed its $40 billion investment commitment to OpenAI, with the final $22-22.5 billion tranche sent last week, sources told CNBC. The funding values OpenAI at $260 billion pre-money and represents one of the largest venture investments ever made.

• SoftBank had previously syndicated $10 billion and invested $8 billion, with the final $22-22.5 billion completing the commitment
• The investment values OpenAI at a $260 billion pre-money valuation, with funds to be deployed over 12-24 months
• Some funding will support OpenAI's AI infrastructure joint venture with Oracle and SoftBank

Tesla's Q4 deliveries are expected to drop 13-15% year-over-year due to lost U.S. tax credits and rising competition, despite launching cheaper Model Y and Model 3 variants. The company faces its second consecutive annual delivery decline with 2024 volumes projected down 7.8% to 1.65 million vehicles, marking a significant setback in North America and Europe.

• Q4 deliveries forecast at 422,850-432,810 vehicles, down 13-15% from last year, with full-year 2024 deliveries expected at 1.65 million (down 7.8%)
• Tesla launched 'Standard' versions of Model Y and Model 3 priced $5,000 below base models to compete with affordable EVs from Chevrolet and Ford
• Despite falling sales, Tesla's market cap reached $878 billion as investors bet on Musk's robotaxi and self-driving technology pivot

Samsung Electronics has secured a U.S. government license to import chipmaking equipment to its China facilities for 2026, providing temporary relief after Washington threatened to revoke license waivers for tech companies earlier this year. The approval comes under a new annual approval system introduced by the U.S. for exports of semiconductor manufacturing tools to China.

• The license represents a shift from previous waiver systems to an annual approval process for chipmaking equipment exports to China
• This follows U.S. threats earlier in the year to revoke existing license waivers for technology companies operating in China
• The approval provides Samsung with continued access to its Chinese manufacturing operations amid ongoing U.S.-China tech tensions