OP Wire 12/24 (OP – Lite)

By Steve

OP Wire: Pre-Market Insights and Big Wins

Wall Street is trading largely flat in thin holiday volumes this Tuesday, with several key market factors in focus, from Fed rate cuts in 2025 to expanding labor strikes at Starbucks. OptionsPlayers (OP) members, however, are celebrating huge wins from yesterday’s chat plays—BABA calls and WMT puts, which paid off massively for the community.

Additionally, OP members are gearing up for tonight’s $944 million OP Lotto jackpot. As always, all members enjoy an equal split if we hit the big win. Let’s stack our gains together!

Key Market Highlights

1. Fed’s Rate Cut Path Under the Microscope for 2025

As we close out 2024, the focus shifts to how aggressively the Federal Reserve will cut rates next year. Current forecasts predict a 50-basis-point reduction, but analysts like BCA Research suggest that cuts could go as deep as 100 basis points if inflation aligns with or undershoots targets.

Core PCE inflation, the Fed’s preferred measure, is expected to hit 2.5% by early 2025, but labor market challenges, including rising unemployment (now at 4.2%), could prompt the Fed to ease more aggressively.

2. Markets Flat Ahead of Xmas Break

Futures are trading with minimal movement as markets prepare to close early for the Christmas holiday. As of early Tuesday:

Dow futures dropped 35 points (-0.1%)
S&P 500 futures fell 2 points (-0.1%)
Nasdaq 100 futures rose by 6 points (+0.1%)

Despite the flat trade, 2024 has been a strong year, with the S&P 500 up 25%, the Nasdaq Composite gaining over 30%, and the Dow Jones up 14%.

3. Starbucks Strike Set to Expand

The labor strike at Starbucks continues to grow, with over 5,000 workers across 300 stores joining the movement. Talks remain at a standstill, with unresolved disputes over wages and staffing. The strike, ending on Christmas Eve, could become the largest in the coffee chain’s history.

4. Musk’s xAI Raises $6B

Elon Musk’s AI startup, xAI, has raised $6 billion in a Series C funding round, bringing its valuation to over $40 billion. Backed by NVIDIA and AMD, xAI aims to challenge competitors like OpenAI with its Grok AI model.

5. Oil Prices Climb, But Concerns Persist

Crude prices saw a modest gain early Tuesday, with WTI rising 0.7% to $69.72 per barrel and Brent up 0.7% to $72.81. However, the energy market faces pressure from declining demand in China, persistent supply concerns, and increased U.S. production.

Tonight: The Big OP Lotto Jackpot

The $944 million jackpot is the biggest lottery opportunity of the season. Don’t forget: every OP member shares equally when we win. Let’s keep the tradition alive and make it a December to remember!

Stay tuned to the chat for updates and insights, and let’s keep stacking those gains. Your wins are our wins—Stack Your Gains!

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