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NEWS
Overheated Market Simmers Over

All four major U.S. indices ended the day in the red for the first time in weeks. Asian markets gained on China’s pledge for more stimulus, but Nvidia shares dropped as China opened an anti-monopoly probe. Extremes in speculative behavior mixed with a cocktail of bad news and geopolitical escalation may make for a shaky year-end. 👀

Today's issue covers China jumping with tech stocks dumping, a recap of Monday’s M&A activity, and other noteworthy pops and drops. 📰

Here’s the S&P 500 heatmap. 2 of 11 sectors closed green, with healthcare (+0.29%) leading and communications (-2.13%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $HUIZ, $OLLI, $CMRX, $DUO, $SONN 📉 $HSY, $RTX, $TMUS, $CRSP, $PARA*

*If you’re a business and want to access this data via our API, email us.

STOCKS
Chinese Stocks Pop While U.S. Tech Flops 📊 

We spoke about this months ago after the initial efforts, but if China’s government has shown anything over the years, it’s that it won’t let its economy be left behind (or at least will fight against the appearance of it being left behind). 😡 

Overnight markets surged after China vowed “more proactive” fiscal measures and “moderately” looser monetary policy next year to boost domestic consumption. While policymakers had used policy to prop up a vulnerable property market and manufacturing sector, the consumer side of the coin remained weak.

Now, it’s stepping up efforts to help its consumers play catchup with its first monetary policy easing in 14 years. 💸 

Chinese stocks soared, causing U.S. stocks and other risk assets to jump too. Popular ETFs like $MCHI and individual stocks like Alibaba, JD.com, PDD Holdings, Baidu, and more all caught a major bid, reversing their recent decline.

Strength overseas helped drive gaps higher in several popular U.S. stocks and indexes, but those quickly reversed. There’s no better example of this than Palantir Technologies, which has risen over 400% in one year and 120% in the last 3 months.

The stock gapped to new highs above $80 at the open but quickly faded as investors took profits or attempted to short the extended stock. That set the tone for the day, with many winners experiencing similar action, dragging the major indexes lower. 🙃 

In addition, semiconductor stocks came under pressure after China opened an antitrust investigation into Nvidia. China’s State Administration for Market Regulation (SAMR) reportedly focuses on Nvidia’s compliance with the terms of its $6.9 billion acquisition of Mellanox Technologies in 2019. Also, Bank of America downgraded AMD to "‘Neutral,’ citing increased competition and delayed AI offerings. 👎️ 

Overall, the market is taking a breather after weeks and weeks of ramping to the upside. Tops are generally processes, not points, so we’ll see how things develop in the coming days and weeks as investors prepare their portfolios for 2025.

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Every artwork performs differently — but with 3 illustrative sales (that were held for 1+ year), Masterworks investors realized net annualized returns of 17.6%, 17.8%, and 21.5%.

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*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here. 

The content is not intended to provide legal, tax, or investment advice. Past performance is not indicative of future performance. Investing involves risk. “Net Annualized Return” refers to the annualized internal rate of return, or IRR, net of all fees and costs, to holders of Class A shares from the primary offering, calculated from the final closing date of such offering to the date the sale is consummated. A more detailed breakdown of the Net Annualized Return calculation for each issuer can be found in the respective Form 1-U for each exit. The 3 median returns above represent the ones closest in percentage to the median of the 12 exits with holding periods over 1 year. Masterworks internally appraises artworks that are held by entities administered by Masterworks Administrative Services on an ongoing basis, and obtains an independent review of appraisals by a third-party appraiser on an annual basis.Appraisals are prepared in accordance with the 2024-2025 Uniform Standards of Professional Appraisal Practice (“USPAP”) developed by the Appraisal Standards Board of the Appraisal Foundation, although it is noted that there are potential conflicts of interest given that some or all individual members of the appraisal committee are employees of Masterworks and Masterworks retains an ownership interest in the subject artworks as well as ownership of the Masterworks Platform. Masterworks compiles historical data from public auctions to produce metrics that we believe can be helpful in measuring and analyzing historical trends in artist markets and the historical price appreciation of specific artworks. See important Reg A disclosures at masterworks.com/cd.