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European Markets Rally to Start 2025, Led by Energy Sector Surge
European stocks kicked off 2025 with the STOXX 600 climbing 0.6%, driven by a 2.3% surge in energy stocks following rising crude oil prices. The positive start comes despite mixed market sentiment and previous quarterly declines, as investors closely monitor U.S. economic indicators.
Economic Outlook 2025: Steady Growth Amid Inflation and Labor Challenges
The U.S. economy projects moderate growth of 2.1% by late 2025 despite persistent inflation above the Fed's 2% target. While recession risks remain low, businesses must navigate labor constraints, supply chain risks, and restrictive monetary policy.
Mortgage Applications Plummet 22% as Interest Rates Climb to End 2024
Mortgage applications saw a dramatic 21.9% decline in late December 2024 as interest rates approached 7% for 30-year fixed loans. The sharp downturn affected both refinance and purchase applications, highlighting ongoing challenges in the housing market due to elevated borrowing costs.
US Mortgage Rates Surge to 6.91%, Reaching Six-Month High
The benchmark 30-year fixed mortgage rate in the US hit 6.91%, its highest level since July, while 15-year rates climbed to 6.13%. The Federal Reserve's revised forecast for fewer rate cuts and persistent inflation concerns continue to drive mortgage costs higher.
U.S. Treasury Faces $3 Trillion Debt Refinancing Challenge in 2025
The bond market enters 2025 grappling with unprecedented $3 trillion U.S. debt maturity while still reeling from 2024's difficulties. Treasury Department must navigate complex refinancing of short-term bills amid market pressures and evolving Federal Reserve policy.
U.S. Credit Card Defaults Surge to 14-Year High, Signaling Consumer Financial Strain
Credit card defaults have reached their highest level since 2010, with lenders writing off $46 billion in seriously delinquent loans during the first nine months of 2024. The sharp rise in defaults, particularly among younger and paycheck-to-paycheck borrowers, points to mounting pressure on household finances after years of high inflation.
ByteDance Plans $7B Nvidia Chip Investment to Power AI Ambitions
TikTok parent ByteDance aims to invest $7 billion in Nvidia chips for AI computing in 2025, strategically storing them outside mainland China to comply with U.S. export restrictions. The bold move would make ByteDance one of the world's largest Nvidia chip users as it expands its AI capabilities and chatbot services.
Biden Backs Congressional Stock Trading Ban, Questions Lawmakers' Ethics
President Biden has publicly endorsed efforts to prohibit members of Congress from trading stocks, marking his first clear stance on this contentious issue. The President's support bolsters the ETHICS Act, which would prevent lawmakers and their families from buying stocks while serving in Congress.
US Weekly Jobless Claims Plunge to 220,000, Signaling Strong Labor Market
Initial unemployment claims dropped by 22,000, surpassing economists' forecasts and highlighting the resilience of the US job market. The decline suggests employers are maintaining workforces despite economic uncertainties, potentially boosting consumer confidence ahead of the holiday season.