Skip to content 
In today’s edition,
- Scaling Colossus
- Weather insights by AI
- Uber is expanding
- Trump and memecoin surge
Market Snapshot
The week ended with technology stocks driving gains despite broader market softness. The Nasdaq Composite climbed 3.14% to 19,859.77, while the S&P 500 rose 0.83% to 6,090.27. The Dow Jones Industrial Average, however, slipped 0.63% to 44,642.52, weighed down by weakness in industrials and cyclicals.
November’s nonfarm payrolls report showed job growth of 227,000, surpassing expectations, with gains in manufacturing and a 0.4% rise in hourly earnings. However, unemployment edged up to 4.2%, and household employment fell by 355,000, tempering optimism.
Only three of 11 S&P sectors ended the week higher, with technology masking declines elsewhere. As the Fed considers rate cuts later this month, markets remain optimistic despite mixed economic signals.
Stock market closing data for the week of Dec 2nd to Dec 6th, 2024
News Summaries
Elon Musk’s xAI is ramping up its Colossus supercomputer, aiming to scale from 100,000 Nvidia GPUs to over 1 million. This facility, built in just three months in Memphis, Tennessee, is central to training its chatbot, Grok, and underscores Musk’s move to compete with OpenAI and Google by securing independent computing power. With GPUs costing tens of thousands of dollars each and the total expansion budget estimated in the tens of billions, xAI’s rapid progress has been backed by $11 billion in funding this year, valuing the company at $45 billion. Unlike rivals like OpenAI and Anthropic, which partner with tech giants for resources, Musk’s strategy focuses on control, even as questions arise about its strain on infrastructure and compliance with regional regulations.
Google DeepMind’s GenCast AI model has set a new benchmark in weather forecasting by outperforming the European Centre for Medium-Range Weather Forecasting (ECMWF) on 97.2% of variables for 15-day predictions, including temperature, wind speed, and humidity. Built on four decades of ECMWF data, GenCast uses probabilistic ensemble predictions, a technique traditionally reserved for high-end forecasts, to model multiple outcomes in under eight minutes—far faster and more energy-efficient than conventional methods. While it excels at predicting trends and extreme events, researchers are working to enhance its storm intensity accuracy and resolution. This development fuels ongoing discussions about integrating AI with physics-based systems, as forecasters weigh hybrid approaches for improved precision.
Uber has launched its first autonomous rides outside the US in Abu Dhabi through a partnership with China’s WeRide Inc., offering UberX and Uber Comfort rates in popular areas like Saadiyat Island and Yas Island. While safety operators are present during this initial phase, fully driverless services are planned for 2025. This move aligns with Uber’s strategy of collaborating with self-driving tech partners rather than developing in-house systems, supported by at least seven partnerships since June. However, investor concerns persist as competition from rivals like Waymo, which plans a Miami launch in 2026, and Elon Musk’s anticipated robotaxi network add pressure to Uber’s traditional driver-reliant model.
From the World of Crypto
Since the US presidential election, the market for memecoins—cryptocurrencies tied to internet culture—has grown rapidly, driven by speculation that Donald Trump’s administration will adopt a crypto-friendly stance.
Tokens like Dogecoin, which gained 140% to a $60 billion valuation, are outperforming more established cryptocurrencies like Bitcoin. Newer memecoins, such as PNUT (representing a viral squirrel), CHILLGUY (a relaxed cartoon dog meme), and BONK (a token inspired by the Solana blockchain), have reached market caps of $1.2 billion, $466 million, and $3 billion, respectively. The trend highlights how virality and internet memes are shaping crypto valuations.
Memecoins typically lack business models, utility, or intrinsic value, relying instead on community hype and trader interest. Despite their speculative nature, exchanges like Binance and Kraken are capitalizing on the trend by listing new tokens quickly.
However, over 89% of memecoins have market caps under $1,000, and critics warn of parallels with the NFT bubble, which burst in 2022. Figures like Binance’s Changpeng Zhao and Cardano’s Charles Hoskinson have expressed skepticism, emphasizing the absence of long-term value.
The frenzy is fueled by figures like Elon Musk, who actively engages with memes online. Trump’s appointment of Musk to head the US Department of Government Efficiency—a nod to Dogecoin—has further energized traders. Yet experts caution that memecoins are often “pump-and-dump” schemes, where prices surge before early holders exit, leaving others at a loss.
As with NFTs, there’s concern that the market could collapse when speculative interest fades, though some see the phenomenon as a reflection of shifting cultural trends in finance.
