Stock Market Today: Nvidia Locks In $700M AI Play + Jeju Air Tragedy Sends Shockwaves Through Aviation

• Stocks hit the brakes on Monday as the market limped into the final stretch of 2024. The S&P 500 fell 1.1%, the Nasdaq dropped 1.2%, and the Dow slid 1%. A light news day left investors with little to rally around, and a lack of trading volume didn’t help matters either. Hopes for a last-minute Santa Claus rally? Fading fast.
• While stocks stumbled, Treasuries found some footing, with the 10-year yield easing to 4.54%. On the housing front, pending home sales rose for the fourth straight month, marking their highest level since early 2023. But with just a handful of trading hours left in the year, it seems the markets are wrapping up 2024 on a sour note.

STOCKS

Winners & Losers

What’s up 📈

• Pony AI jumped 11.15% after Guangdong allowed robocar tests across multiple cities with one permit, creating China’s largest autonomous driving zone. ($PONY)
• EQT gained 5.12%, driven by surging natural gas prices, which spiked over 17% Monday. Natural gas is on track for its best year since 2016. ($EQT)
• Nvidia barely made it in the green adding 0.35%, bucking the broader market downtrend and tech sell-off. The AI chipmaker’s stock has surged 185% year-to-date. ($NVDA)

What’s down 📉

• Archer Aviation dropped 10.02% after announcing plans to double its authorized Class A common stock from 700 million to 1.4 billion shares, as approved during a December 20 shareholder meeting. The company also greenlit the issuance of Class A shares to Stellantis under an August agreement. ($ACHR)
• Crypto stocks moved lower with bitcoin's decline: Mara Holdings fell 6.24%. ($MARA), MicroStrategy slid 8.19% after disclosing a sale of over 592,000 shares for $209 million, while also purchasing more than 2,100 bitcoins. ($MSTR), Coinbase declined 3.82%. ($COIN)
• Super Micro Computer lost 4.07% after terminating its financing and securities agreement with HSBC's Taiwan affiliate. ($SMCI)
• Technology stocks struggled, with the S&P 500 tech sector losing 1%: Tesla fell 3.30%. ($TSLA), Amazondropped 1.00%. ($AMZN), Apple declined 1.33%. ($AAPL), Microsoft shed 1.32%. ($MSFT)
• Boeing dropped 2.31%, as South Korea ordered inspections of all 737-800 planes following a deadly Jeju Air crash. ($BA)

Nvidia Locks In $700M AI Play

Nvidia has closed its $700 million acquisition of Israeli AI startup Run:ai, a move designed to optimize AI infrastructure and extend its dominance in the booming artificial intelligence sector. Regulatory hurdles? Cleared for takeoff—at least in Europe.

Opening the Playbook

Run:ai’s software, which helps maximize the efficiency of Nvidia’s GPUs, will now be open-sourced. Translation: competitors like AMD and Intel can use the software too. Why share the crown jewels? Nvidia’s move could be a play to quiet antitrust critics while expanding its influence across the broader AI ecosystem.

The startup, which Nvidia has worked with since 2020, adds a critical layer to Nvidia’s growing empire—helping power everything from data centers to cutting-edge AI systems.

Antitrust Drama

The deal wasn’t a breeze. Regulators in the EU gave the green light after a deep dive but didn’t miss the fact that Nvidia already controls about 80% of the GPU market. Meanwhile, the U.S. Department of Justice continues to take a closer look, adding a hint of uncertainty to Nvidia’s unchecked expansion.

For Nvidia, the stakes are high. As AI reshapes industries, its latest acquisition shows it’s not just chasing innovation—it’s determined to own the infrastructure behind it.

NEWS

Market Movements

• 🏦 Fannie Mae and Freddie Mac May Go Private: Billionaire investor Bill Ackman predicts that President-elect Donald Trump will remove Fannie Mae and Freddie Mac from conservatorship, potentially making them private companies again. Shares of Fannie Mae surged 18.4%, while Freddie Mac shares rose 18% following his announcement. ($FNMA, $FMCC)
• 💻 Major Telecom Hack Hits AT&T and Verizon: AT&T and Verizon confirmed they were targeted by the Chinese-linked Salt Typhoon cyberespionage operation, labeled the largest U.S. telecom hack, but assured their networks are now secure. ($T, $VZ)
• 🎥 Netflix Sets Streaming Record: Netflix set a U.S. streaming record with two Christmas Day NFL games,attracting nearly 65M viewers. The Ravens vs. Texans game peaked at 27M during Beyoncé's halftime show. ($NFLX)
• 🛒 Big Lots Store Deal Secures Brand Future: Big Lots secured a deal with Gordon Brothers to keep hundreds of stores operational after bankruptcy, with Variety Wholesalers planning to acquire up to 400 stores and two distribution centers. ($BIG)
• ☁️ IBM Acquisition Faces Scrutiny: IBM’s planned $6.4B acquisition of HashiCorp faces U.K. antitrust review, adding to scrutiny from the U.S. FTC amid concerns in the cloud sector. ($IBM, $HCP)
• 💼 Costco Defends DEI Initiatives: Costco pushed back against anti-DEI challenges, stating that diversity strengthens its workforce and customer appeal, urging shareholders to reject proposals opposing DEI initiatives. ($COST)
• 📈 Record ETF Inflows in 2024: U.S.-based ETFs saw record inflows of over $1T in 2024, boosting total assets to $10.6T (+30% YoY), driven by equity-focused funds, strong fixed-income demand, and bitcoin-linked funds. ($BTC)
• 🍔 2024 Consumer Trends Shape Retail and Dining: U.S. consumers prioritized value in 2024, shifting to discount retailers and fast food, reshaping retail and dining landscapes. Some businesses thrived while others struggled. ($WMT, $MCD)

Jeju Air Tragedy Sends Shockwaves Through Aviation

Boeing shares dropped 2% Monday after a tragic Jeju Air crash in South Korea killed 179 people, making it the deadliest aviation disaster in the nation’s history. Investigators are now looking into potential causes, including a bird strike and landing gear failure, as South Korea orders emergency inspections of all 737-800 planes in the country.

The Timeline

Here’s how the tragic event unfolded: Flight 2216, carrying 181 passengers and crew from Bangkok to Muan International Airport, declared a mayday after receiving a bird strike warning. The pilot aborted the first landing attempt, but during the second attempt, the landing gear failed to deploy. The jet skidded off the runway, struck a wall, and exploded into flames. Only two crew members survived.

Officials retrieved black boxes for analysis, while the U.S. National Transportation Safety Board and Boeing are lending support to the investigation. The 737-800 has been a reliable aviation staple, but this incident has raised serious questions.

Why It Matters

This isn’t just an isolated event—it’s a major moment for Boeing, which is still reeling from past controversies surrounding its 737 Max series. South Korea has 101 active 737-800s across carriers like Jeju Air, Korean Air, and T’way Air, and the crash has spurred a nationwide inspection to ensure compliance with safety protocols.

Adding to the scrutiny: Jeju Air’s stock hit an all-time low following the crash, and Boeing is under pressure to uphold the reputation of its long-standing workhorse model. Aviation analysts believe investigators will closely examine bird strike standards, emergency response protocols, and why the landing gear wasn’t deployed.

Bigger Picture: The tragedy also lands during political upheaval in South Korea, where Acting President Choi Sang-mok has declared a week of mourning. For Boeing and South Korean aviation, this is more than a PR crisis—it’s a test of safety practices in one of the industry’s most trusted aircraft models.