10 key points to keep an eye on in the stock market this Wednesday

Market Insights for the Last Trading Day of 2025

1. It’s the final trading day of the year, and the stock market is experiencing a dip. The S&P 500 index decreased slightly before closing, marking a potential fourth consecutive loss. Despite this, the index has risen around 17% in 2025, positioning itself for a third year of double-digit growth. U.S. markets will be shut on Thursday for New Year’s Day.

2. On another note, the U.S. dollar is facing its toughest year since 2017. Concerns regarding President Donald Trump’s tariffs and his administration’s active efforts to appoint a more dovish Federal Reserve chief have added pressure.

3. Reports from Reuters indicate that Nvidia has reached out to Taiwan Semiconductor Manufacturing Company to increase production of H200 chips due to high demand from China. Nvidia has ordered over 2 million chips from China for delivery in 2026, but currently, only has 700,000 available.

4. The South China Morning Post noted that ByteDance may invest as much as 100 billion yuan (approximately $14 billion) in Nvidia’s H200 chips in 2026, contingent on chip import approvals. This would be a notable rise from the 85 billion yuan (about $12 billion) spent in 2025.

5. In company news, Nike CEO Elliott Hill purchased around $1 million worth of company stock according to a regulatory filing. This signals positive news for shareholders, as insider purchases often reflect management’s confidence in the company’s future.

6. Analysts at The People have upped Alphabet’s price target from $340 to $385. They reaffirmed their “Buy” rating, citing further strength in the search sector. They also suggested that updates on Alphabet’s custom silicon chip business could enhance growth potential. We initiated a position in Alphabet this week, as the stock, which has risen 66% this year, seems to have ample room to climb.

7. Mega trades are back on the scene, and the Wall Street Journal reported that investment bankers are preparing for more significant deals in 2026. This is promising news for institutions like Goldman Sachs. In 2025, a record 68 transactions over $10 billion are anticipated, based on LSEG data since 1980.

8. Citi has raised its target price for Capital One from $290 to $310, indicating a nearly 27% increase from Tuesday’s closing figure. Analysts expect strong fourth-quarter results from credit card issuers, prompting Citi to maintain its “buy” rating.

9. Chinese President Xi Jinping stated that the country aims to meet its 5% GDP growth target for 2025. In his New Year’s speech, he emphasized the need for confidence, seizing opportunities, and promoting high-quality development.

10. Lastly, Elon Musk, CEO of Tesla, shared on social media that production for the CyberCab is set to increase in April. The electric vehicle manufacturer’s stock has risen 1% in premarket trading.