Oracle’s stock rose more than 6% after it announced plans to manage TikTok’s user data for its US operations. This move could create a new source of revenue for Oracle and gives it a 15% share in TikTok’s restructured US business. Nvidia and the Nasdaq also saw gains, fueled by rising interest in data centers and computing power.

New AI Chips Launched

In China, Moore Threads introduced new AI chips, claiming they compete with Nvidia’s H200 and close the gap with the Blackwell series. Tech stocks are on the rise, but decreasing liquidity at the end of the year adds uncertainty as the global semiconductor race accelerates. Investors are closely monitoring market changes as tech companies compete for advantages. Beyond the excitement around Oracle, FXStreet reports that the EUR/USD pair is gaining ground due to differing economic stability between the ECB and the US Dollar. Gold reached a record high of over $4,400 amid rising tensions in the Middle East. At the same time, Bitcoin’s future looks promising, with expectations of increased institutional demand pushing prices up by 2026. The economic landscape is changing, showcasing different trends across financial markets. Following the tech rally on Friday, we see Oracle’s deal with TikTok as a key driver, although liquidity is tightening as the year ends. The rise in Oracle and Nvidia underscores the market’s interest in data-centric investments, a trend we expect to extend into early 2026. Derivative traders might explore call options on cloud infrastructure to leverage this momentum while keeping an eye on the low CBOE Volatility Index (VIX) at 13.5, indicating that overly relaxed conditions could trigger sharp market reversals. The introduction of new AI chips from Moore Threads presents a serious competitive threat to market leaders like Nvidia. This development challenges the unlimited growth narrative that has energized semiconductor stocks through 2025. We believe that using bear call spreads on semiconductor ETFs can be a smart strategy to protect against heightened competition from China, similar to the volatility seen during the early tech trade disputes of 2022.

US Dollar Decline

As the US Dollar weakens, we are observing the EUR/USD pair’s climb towards 1.1750. Recent US inflation data for November 2025 showed a rate of 2.9%, slightly below expectations, which strengthens the case for a cautious Federal Reserve approach in early 2026. Taking short positions on the Dollar Index (DXY) remains an attractive strategy, especially with the European Central Bank indicating stability. Gold’s record price above $4,400 directly reflects rising geopolitical tensions and a weaker dollar. Central banks have been significant buyers, with the World Gold Council reporting a record addition of 399 tonnes to their reserves in Q3 of 2025. While prices have surged, buying call options on gold miners or related ETFs provides exposure to potential market shifts with limited risk. As January approaches, the market appears heavily positioned with long-tech and short-dollar trades, which can be risky as liquidity decreases. Sudden market shifts often occur when positions are unwound in low-volume settings, a trend we noticed during the 2023 holiday season. We’re purchasing out-of-the-money puts on major indices as an inexpensive way to hedge our portfolios against any abrupt sentiment changes in the early weeks of the New Year. Create your live VT Markets account and start trading now.

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