Oracle saw a surge in shares, jumping over 6% after announcing it will host TikTok’s US user data. This development potentially opens a new cloud revenue stream and grants Oracle a 15% stake in TikTok’s newly structured US business. Nvidia and the Nasdaq also gained, benefiting from the growing interest in data centres and computing power.
Unveiling New AI Chips
In China, Moore Threads unveiled new AI chips, claiming competition with Nvidia’s H200 and narrowing the gap with the Blackwell series. Tech stocks are experiencing an upswing, yet diminishing year-end liquidity is casting uncertainty as the global semiconductor race quickens. Observers are vigilant of market movements as tech companies jockey for positions.
Besides Oracle’s buzz, FXStreet presents updates like the EUR/USD experiencing gains due to contrasting economic stability between the ECB and the US Dollar. Gold hit an all-time high above $4,400 amid escalating Middle East tensions. Meanwhile, Bitcoin’s future seems bullish, with predictions of institutional demand lifting values by 2026. The economic landscape continues to evolve, showcasing a variety of trends across financial markets and assets.
Given the tech rally on Friday, we see the Oracle-TikTok deal as a catalyst, but year-end liquidity is getting thin. The surge in Oracle and Nvidia highlights the market’s appetite for data-centric plays, a trend we expect to continue into early 2026. Derivative traders should consider call options on cloud infrastructure names to ride this momentum, but be mindful that the CBOE Volatility Index (VIX) is currently low at 13.5, suggesting complacency could lead to sharp reversals.
The news of new Chinese AI chips from Moore Threads introduces a critical competitive risk for market leaders like Nvidia. This development caps the unlimited upside narrative that has fueled semiconductor stocks throughout 2025. We believe strategies like bear call spreads on semiconductor ETFs could be prudent to hedge against increased competition from China, reminiscent of the sector-wide volatility we saw during the initial tech trade disputes of 2022.
US Dollar Weakness
With the US Dollar showing weakness, we are watching the EUR/USD pair’s push toward 1.1750. Recent US inflation data for November 2025 came in at 2.9%, slightly below expectations and strengthening the case for a dovish Federal Reserve stance in the first quarter of 2026. Trading futures on the Dollar Index (DXY) to the short side remains an attractive position, especially with the European Central Bank signaling stability.
The record-high gold price above $4,400 is a direct response to escalating geopolitical tensions and a weaker dollar. Central bank buying has also provided a strong floor, with the World Gold Council reporting that central banks added a record 399 tonnes to their reserves in the third quarter of 2025. While the move is extended, buying call options on gold miners or related ETFs offers a way to maintain exposure to further risk-off events with defined risk.
As we approach January, the market feels crowded in long-tech and short-dollar trades, which can become dangerous as liquidity thins out. The sharpest market moves often happen when positions are unwound in a low-volume environment, a pattern we observed during the holiday season of 2023. We are buying out-of-the-money puts on major indices as a cheap portfolio hedge against any sudden sentiment shifts in the first few weeks of the new year.
