China services PMI, Nippon Steel

China’s services sector expanded at its fastest pace in seven months, according to the Caixin survey, compiled by S&P Global.

Its services purchasing managers’ index came in at 52.2 in December, up from 51.5 in November.

Caixin said that the acceleration in business activity growth was supported by greater new business inflows, though it noted that export business declined for the first time since August 2023.

Quicker new business growth, however, increased work backlogs, as firms have lowered employment levels due to a decline in business optimism.

— Lim Hui Jie

Hong Kong’s business activity expanded at a slower pace in December, with the city’s purchasing managers index coming in at 51.1.

The reading was lower than the 51.2 seen in November. “Subdued external demand was a key dampener for growth in the closing month of 2024,” Jingyi Pan, economics associate director at S&P Global Market Intelligence wrote in the release.

He noted that firms in Hong Kong were concerned about potential U.S. tariffs impacting trade, adding that this may “remain a key driver of sentiment and economic conditions in the new year.”

— Lim Hui Jie

Shares of Japan’s Nippon Steel fell 2% after the carmaker’s president Tadashi Imai reportedly said that the company might file a lawsuit against the U.S. government, according to a report by Japanese broadcaster Nippon Television.

This comes after U.S. President Joe Biden blocked Nippon Steel’s purchase of U.S. Steel after a year-long review, citing national security concerns.

The NTV report quotes Imai as saying, “Our company has the right to be properly reviewed. The history of the review so far and the U.S. government’s decision have not been properly reviewed,” according to a Google translation of the report in Japanese.

He added, “I think we can take action, including announcing (countermeasures), without spending too much time.”

Reuters also reported that Nippon Steel will hold a press conference on Tuesday about the merger.

The outlook for equity markets this year looks uncertain, with one market strategist describing the new year as “stepping into a house of cards.”

“The stock market may fluctuate in 2025, but significant opportunities will arise for those focused on individual stock picks,” Michele Schneider, chief market strategist at Marketgauge.com, said.

From beauty labels to electric vehicle companies, here are four stocks Schneider expects to beat the market this year.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

The stock market enjoyed a broad rally on Friday, led by the tech-heavy Nasdaq Composite. Still, the three major averages finished with losses for the week.

— Jesse Pound

The market may have more room to run in 2025, according to UBS’ David Lefkowitz.

“We expect the bull market to continue with the S&P 500 reaching 6,600 by the end of the year, primarily driven by healthy profit growth of 9%,” the firm’s chief investment officer of U.S. equities wrote in a recent note. His price target implies about 12.5% upside from Thursday’s close.

“That said, there are always risks that investors will have to navigate,” Lefkowitz continued.

On that front, Lefkowitz said changes in trade policy under President-elect Trump, fiscal battles in Congress, inflation and the outlook for artificial intelligence could all possibly spur volatility in the coming year.

“But as long as corporate America puts up the numbers, stocks should respond favorably,” he said.

The forecast comes after a record-breaking year for the S&P 500. In 2024, the broad market index gained more than 23%, scoring multiple new intraday and closing highs during the period.

— Sean Conlon

Microsoft plans to spend $80 billion to build artificial intelligence-enabled data centers in fiscal 2025, the technology titan said Friday.

The company said more than half of that spending in the fiscal year, which ends in June, will be in the U.S.

Shares last traded up more than 1% in Friday’s session. The stock is on track to snap a five-day losing streak.

— Alex Harring, Jordan Novet