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S&P 500 Nears 7,000 Milestone as Nvidia Clinches $20B Groq Talent Deal

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S&P 500 nears the 7,000 mark as the Santa Claus rally continues. Explore Nvidia's $20B Groq deal and Trump's latest peace talk updates.

The Santa Claus rally isn't just a myth—it's a record-breaker. The S&P 500 is knocking on the door of the 7,000 milestone. According to Reuters, the benchmark index hit fresh intraday records last Friday, finishing a winning week within 1% of the historic level. While some feared the rally would fizzle out, the major indexes all gained more than 1% over the holiday-shortened period.

Nvidia's Stealthy Move and the S&P 500 7000 Milestone 2025

Nvidia is proving it's not just a chip powerhouse but a master of strategic maneuvering. Instead of a traditional acquisition that would trigger intense antitrust scrutiny, the company is reportedly using a "non-exclusive licensing agreement" to absorb top talent from AI startup Groq. Analysts suggest this deal could be worth $20 billion, allowing Nvidia to expand its dominance while keeping the "fiction of competition" alive on Wall Street.

Geopolitical Hope vs. Consumer Reality

On the diplomatic front, President Donald Trump signaled progress in peace talks after meeting Ukrainian President Volodymyr Zelenskyy at Mar-a-Lago. Trump claimed they are "getting a lot closer" to a deal. Meanwhile, travelers aren't as lucky; a massive winter storm in the Northeast has grounded thousands of flights, disrupting travel plans for a significant portion of the 50 million people expected to fly this season.

For your wallet, the "Value Wars" in the restaurant industry are set to continue into 2026. Fast-food giants like McDonald's are extending their $5 meal deals as inflation-weary diners prioritize cost over convenience. This persistent focus on value highlights the ongoing pressure on consumer discretionary spending.

Expect low liquidity this week with markets closed on Thursday. Investors should keep a close eye on the Federal Reserve's meeting minutes due this Wednesday.

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