Hey Snackers,
Fun fact about the top songs of 2025: most of them aren’t from 2025, as only six of the top 20 songs so far are from this year. Many of the songs on the top 20 list came out in November or December 2024, giving them time to find their feet more fully this year. I guess if your Spotify listening age made you feel a little less relevant than you’d once thought yourself, maybe recognizing some of the year’s biggest songs, a handful of which were also some of last year’s biggest songs, will put a bit of pep in your step.
While it was expected, stocks rallied on Wednesday after the Federal Reserve lowered its policy rate by 25 basis points to a range of 3.5% to 3.75% in its final scheduled meeting of the year. The S&P 500 closed just shy of a record, while the Russell 2000 did notch an all-time high as small-caps especially benefit from easing. The rally was broad-based, with all sector ETFs gaining except for utilities.
Investors are pricing in a global growth revival for 2026
There’s a theme to the bounce-back that has the S&P 500 knocking on the door of a fresh record high to shake off its November doldrums: a bet on the revival of global growth heading into 2026.
Traders are embracing the stocks that tend to move more than the overall market and eschewing safer alternatives.
The Invesco S&P 500 High Beta ETF has outperformed the Invesco S&P 500 Low Volatility ETF for 13 consecutive sessions, a record relative winning streak.
Similarly, a Goldman Sachs basket that tracks the performance of cyclical stocks (ex commodities) versus defensives has gone up for 13 consecutive sessions as well, extending the record streak that surpassed 2017’s run in the green.
The Federal Reserve implicitly endorsed this pro-growth stance through its Summary of Economic Projections released in tandem with Wednesday’s rate cut, upgrading its forecast for GDP growth next year to 2.3% from 1.8% in its September estimates.
Since late October, long-term bond yields have been rising all over the world, another signal of confidence in the outlook for nominal activity (and also reflecting large budget deficits that put a floor under growth).
Many developed market central banks, including Canada, the Eurozone, Sweden, Denmark, Australia, New Zealand, and Japan, are priced to have policy rates higher in one year’s time than they are now. This is not something that happens in a world where investors are preoccupied with downside risks to growth and inflation.
The Takeaway
“Given strong domestic demand trends and a lack of household and corporate financial vulnerabilities, combined with fading tariff impacts and fiscal stimulus, 2026 outlooks remain somewhat too pessimistic,” wrote Peter Williams, an economist at 22V Research. “Recent bank, card, and consumer names continue to support this view.”
Add it up and you have the bond and stock markets shaking their Magic 8 Balls to wonder about the year ahead and seeing the same answer: “Outlook good.”
Could 2026 be the year you learn futures?
More and more traders are getting into futures trading. Why?
Trade around the clock: Unlike stocks and ETFs, you can trade futures nearly 24 hours a day.
Find the right fit: With multiple contract sizes, futures can be cost-efficient for different portfolio sizes.
Stretch your capital: With a lower margin requirement, equity futures offer more margin savings1 compared to stocks and ETFs.2
1 Margin comes with increased risks. Losses as well as gains will be magnified with the greater amount borrowed.
Hot DRAM! Micron up on memory price spike
Memory and storage chip maker Micron has had a healthy run, with shares doubling 85% over the last three months, thanks in part to spiking prices for its core DRAM product amid the AI investment boom.
In a note Wednesday, Citi analysts upped their target for the shares to $300 from $275, saying they predict good things from the company’s December 17 earnings report.
“We expect the company to post results/guidance significantly above consensus, driven by unprecedented increases in DRAM pricing, as DRAM pricing should increase 50% QoQ in 4Q25,” they wrote.
We have seen a pretty remarkable move in prices for Dynamic Random Access Memory, or DRAM, with the average spot price for a 16-gigabyte DDR5 up nearly 220%. The chart is kind of nuts!
Citi analysts estimate that DRAM sales account for roughly 79% of Micron revenues.
The ubiquitous short-term data storage chips used in computers and phones have long been considered something of a low-priced commodity product.
At times in the past, DRAM, which acts as a sort of high-speed, short-term memory for tasks computers are actively working on, has been called the “crude oil of the information age” because of its widespread use.
The Takeaway
Citi’s note is the latest in a number of favorable analyst missives on the stock this month, most lifting price targets. Tuesday, HSBC initiated coverage of Micron with a “buy” rating. The shares have more than tripled this year, and are the fourth-best performers in the S&P 500.
The Best Thing We Read Today
Interactive Brokers’ chief strategist sees reasons for caution in ’26
With the looming shift in Fed leadership and growing concern about the AI trade, Steve Sosnick is going against the grain and predicting a completely different outcome for where the S&P 500 will end up next year than every other analyst we’ve seen so far.
Snacks Shots
🏈 NFL: Tonight the Atlanta Falcons take on divisional rivals the Tampa Bay Buccaneers, with the home team Bucs currently favored in the matchup with a priced 69% chance of victory. Atlanta has no hope of winning the division, but Tampa is playing for a crucial divisional win as it seeks to hold Carolina — which still has a 30% chance of winning the NFC South — at bay.
🎬 Movie: Can James Cameron do it? While “Zootopia 2” was the last movie considered to be a serious rival of “A Minecraft Movie” in the race to become the top-grossing domestic film of 2025, its odds have fallen to nil as only “Avatar: Fire and Ash” remains, with a 3% chance of beating out “Minecraft” to be the top film of the year, according to Polymarket.
*Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.
LNGX Lets You Plug Into America’s Natural Gas Export
America has an opportunity in natural gas — primarily as an exporter. While AI power needs are adding to demand, data suggests that US exports of liquefied natural gas (LNG) actually represent the bigger near-term structural driver for natural gas producers and pipeline companies.
Global X’s US Natural Gas ETF (LNGX) offers investors pure-play exposure to American companies with high natural gas exposure across the value chain. Discover the opportunity.
Off The Charts
What Else We're Snackin'
America’s housing market is a tale of two types of city right now
As investors pick sides in Netflix vs. Paramount, analysts say a renewed Warner Bros. Discovery bidding war looks inevitable
Elon Musk told a Google executive that “Waymo never really had a chance against Tesla”
Thank you, next: Eric Jackson, architect of the Opendoor rally, laid out his bullish thesis for Nextdoor
Meta is reportedly training its new AI using rival models and switching to closed models in the quest for profits
Snack Fact Of The Day
Nine of the top 10 bestselling items eligible for Amazon same-day delivery are fruit.
Advertiser's disclosures:
2 Futures and futures options trading involves substantial risk and is not suitable for all investors. Risks include the loss of principal. As with all investments, you must make your own determination whether an investment is consistent with your investment objectives, risk tolerance, financial situation, and evaluation of the investment.
Please review the CME disclaimers.
Important Information
Investing involves risk, including the possible loss of principal. The investable universe of companies in which the Fund may invest may be limited. LNGX invests in the energy industry, which entails significant risk and volatility. LNGX is non-diversified.
Carefully consider the Fund’s investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund’s summary or full prospectuses, which are available at GlobalXETFs.com. Please read the prospectus carefully before investing.
Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC.