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Top Market Movers This Week: Dec 9–14

2024.12.14

1. Google Unveils Willow Quantum Chip

Alphabet Inc. (NASDAQ: GOOG) announced its groundbreaking Willow chip, marking a significant milestone in quantum computing. Willow demonstrated computational capabilities previously thought impossible, completing a task in under five minutes that would take modern supercomputers 10 septillion years. This achievement added $250 billion to Alphabet’s market capitalization, propelling the Nasdaq Composite above 20,000 points for the first time.

Nick Sciple from Motley Fool Money noted that this surge reflects renewed confidence in Google’s technological leadership, especially as AI concerns regarding its advertising business subside.

2. Kroger-Albertsons Merger Blocked

A U.S. District Judge denied the merger of Kroger (NYSE: KR) and Albertsons (NYSE: ACI), citing Federal Trade Commission (FTC) concerns about its impact on consumer competition. In response, both companies announced share buyback programs—$7.5 billion for Kroger and $2 billion for Albertsons—while increasing dividend payouts.

Anthony Schiavone of Dividend Investor highlighted that Kroger’s robust buyback capabilities demonstrate resilience despite the failed merger.

3. Inflation and Rate Cuts

The Consumer Price Index (CPI) rose to 2.7% in November, up from 2.6% in October, largely driven by higher food prices. This data strengthens market expectations of a Federal Reserve rate cut next week. However, lingering inflation suggests a slower pace of rate reductions in 2025.

Economist Seth Jason warned against overreacting to short-term inflation metrics, advocating a cautious approach to investment decisions.

4. General Motors Shifts Focus Away from Robotaxis

General Motors (NYSE: GM) announced it would cease funding for its robotaxi division, Cruise, after investing over $10 billion. The company will now prioritize advanced driver-assistance systems and autonomous features for its personal vehicles.

Uber (NYSE: UBER), which partnered with Cruise for robotaxi integration, saw a 5% stock drop but may benefit in the long term by gaining flexibility and reducing competition in the ride-sharing market.

5. Adobe’s Growth Fails to Impress Investors

Adobe Inc. (NASDAQ: ADBE) exceeded quarterly expectations but provided a weaker-than-anticipated forecast, leading to a 15% stock drop. Investors fear that competition from AI-powered tools could impact Adobe’s long-term growth.

Despite concerns, analysts like Kirsten Guerra remain optimistic, citing Adobe’s advanced AI tools as potential game-changers for workplace efficiency.

6. Broadcom Joins the $1 Trillion Club

Broadcom Inc. (NASDAQ: AVGO) crossed the $1 trillion market cap threshold following a strong earnings report. The company’s success is driven by collaborations with cloud giants like Apple (NASDAQ: AAPL) and OpenAI to develop custom AI chips.

Broadcom’s stock has nearly doubled in 2024, underscoring its dominance in the semiconductor industry.

7. Nike Faces Challenges Amid Declining Performance

Nike Inc. (NYSE: NKE) has underperformed in the S&P 500, with its stock dropping 28% year-to-date. Investors eagerly anticipate the company’s December 19 earnings report to see how new CEO Elliott Hill plans to revitalize the iconic brand.

Conclusion

The week of December 9–14, 2024, highlighted groundbreaking innovations, unexpected setbacks, and shifting market dynamics. From Alphabet’s quantum leap to General Motors’ strategic pivot and Broadcom’s historic milestone, these developments underscore the rapid evolution of industries and the challenges companies face in maintaining competitive edges.