Wall Street’s major averages rose on Friday at the start of a shortened trading day. 

At the time of writing, the Dow Jones Industrial Average was up 0.3%, while the S&P 500 index added 0.2%.

The Nasdaq Composite index was up 0.1% from the previous close. 

David Morrison, senior market analyst at Trade Nation, said:

US exchanges were closed for the holiday and have a shortened session today, so markets should be quite thin and volumes low.

Despite this, investor sentiment remains positive as far as equities are concerned, and the ongoing pullback in bond yields is providing a welcome tailwind.

Some of the upside momentum on Friday came from the rise in chip stocks. 

Chip stocks rose on Friday after Bloomberg reported that the Biden administration was considering additional barriers on the sale of semiconductor equipment to China that weren’t as strong as previously anticipated. 

Friday’s rise in stocks comes as traders will look to close out the month on highs.

All three US benchmarks have risen sharply this month after President-elect Donald Trump won the 2024 US elections. 

The Dow Jones has added more than 7% in November, which is the best month since November 2023, according to CNBC. 

Both the S&P 500 and the Nasdaq Composite will end the month with 5% gains each. 

Tesla shares up 33% in November

Shares of Tesla have rallied 33% in November after Trump’s win.

The electric vehicle maker’s CEO has close ties with Trump, which is viewed by traders as a positive for the business. 

The company returned to a $1 trillion market cap in November, and was also headed for its best month since January 2023. 

Musk recently got assigned a starring role by Trump, leading a so-called Department of Government Efficiency along with Vivek Ramaswamy, a former Republican presidential candidate, CNBC reported. 

Chip equipment stocks rise

Shares of chip equipment stocks moved higher on the Bloomberg report. 

The report said that President Joe Biden was considering more restrictions on sales of semiconductor equipment and AI memory chips to China. 

According to the report, the restrictions could come as soon as next week and impact Micron Technology, along with some Taiwan-based companies and suppliers to Hauwei Technologies. 

Shares of US-based companies such as Applied Materials, Lam Research and KLA Corp rose sharply on Friday. 

Shares of Applied Materials rose nearly 4%, while those of Lam Research popped close to 6%. Shares of KLA Corp rose more than 4%. 

Meanwhile, prominent stock NVIDIA Corporation was also up nearly 3% on Friday. 

Bullion set for worst month so far in 2024

Gold and silver prices were on track to close out November with hefty declines. 

Most of the declines in the precious metal complex was due to a surging dollar after Trump’s election win. 

Gold slipped more than 2% so far in November, which marks its worst month since September 2023, when it fell 5%. 

Silver, meanwhile, has dropped 4% this month. This will mark the metal’s worst month since December of last year, when it fell more than 6%. 

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The oil markets were left on the edge after the Organization of the Petroleum Exporting Countries and allies postponed their much-anticipated meeting on Sunday. 

OPEC on Thursday said that the ministerial meeting scheduled for Sunday will now be held on December 5. 

Oil prices have been moving sideways on Friday, “partly because another postponement of the production increase by OPEC+, which was previously planned for January, was almost a foregone conclusion,” Barbara Lambrecht, commodity analyst at Commerzbank AG, said in a report. 

Lambrecht said the delay of the OPEC+ meeting has brought back some uncertainty in the market. 

“Officially, scheduling conflicts are cited as the reason, but there is also speculation whether – as has often been the case in the past – there are difficulties in formulating a joint production strategy,” Lambrecht said. 

Prices to remain rangebound ahead of the meeting

Analysts expect oil prices to remain rangebound in the lead up to the OPEC meeting next week. 

“Although this meeting will be crucial in terms of when in 2025 the production normalization will take place, low liquidity in US markets due to the Thanksgiving holiday on Thursday and early closure on Friday could be an issue,” Sriram Iyer, senior research analyst at Reliance Securities, told Invezz. 

Iyer said:

So, prices could remain rangebound ahead of the meeting.

Oil prices had come under pressure earlier this week due to easing of Middle East tensions as Israel and Lebanon-based Hezbollah agreed to a ceasefire deal brokered by the US. 

Prices were on course for a 3% decline this week so far as the market focuses on further cues from the OPEC+ meeting. 

According to David Morrison, senior market analyst at Trade Nation, the “technical picture” for West Texas Intermediate remains unchanged at present. 

OPEC+ left with a tough choice

Ahead of the ministerial meeting of OPEC+, a lot of market chatter indicated that the cartel does not have much of a choice, but to extend production cuts again. 

Eight members of the cartel, including Saudi Arabia and Russia, have been cutting oil production voluntarily by 2.2 million barrels per day since the beginning of the year. 

Saudi Arabia, the de-facto leader, of the group alone accounts for 1 million barrels per day of production cut. 

Moreover, the voluntary production cuts were set to expire in June this year.

However, these were extended four times since then to prop up oil prices. 

Iyer noted:

The reason for the pushback month after month as prices and demand, for that matter, fail to bounce and OPEC members have been waiting since the second half of 2024 to see demand from China rebound, which has failed to materialize.

A few weeks ago, reports suggested that Saudi Arabia would abandon its desire for higher oil prices to regain market share. 

However, if the cartel unwinds some of the production cuts from January and increases output, it could spell doom for the oil markets, according to experts. 

In a sense, Saudi Arabia and OPEC’s hands are tied because increasing production would mean a substantial glut.

This could drag down oil prices even further. 

Oversupply fears

According to the International Energy Agency (IEA), the oil market remains fairly well supplied.

Additionally, the IEA said even without OPEC unwinding some of the voluntary production cuts from January, the world will have excess crude oil next year. 

According to the Paris-based energy watchdog’s estimates, growth in global oil demand is expected below 1 million barrels per day next year. While, non-OPEC supply alone is expected to rise by 1.5 million barrels per day. 

In such a scenario, if OPEC+ turns on the taps from January, the market will be overflowing with crude oil. 

Meanwhile, there is also anticipation of the US oil and gas output rising sharply under the President-elect Donald Trump’s administration. 

Trump is expected to unveil a wide-ranging energy plan that would increase drilling for oil and gas off the coast of the US and on federally-owned lands. 

The President-elect is also expected to roll back several climate regulations, which were passed under the current administration. 

The US is the world’s largest producer of crude oil. 

OPEC may extend output cuts for three months

According to Commerzbank, OPEC+ may extend its steep voluntary production by three months till the end of March 2025. 

“In principle, however, we are sticking to our view that the planned production increase will be postponed for at least another three months, as otherwise there would be a risk of massive oversupply on the oil market,” Lambrecht said. 

Meanwhile, Morrison of Trade Nation echoed the same tone:

The group is expected to announce yet another extension to its longstanding output cuts, beyond the end of this year. These cuts, borne mainly by Saudi Arabia and Russia, have helped put a floor under prices. 

Lambrecht also said the rescheduling of the meeting could indicate indecision to formulate a clear production plan. 

“The numerous consultations in the run-up to the event could also be an indication of this. However, we suspect that this is more about individual quotas than the overall strategy,” she said.

For example, the United Arab Emirates was granted a gradual increase in production from January as it has invested heavily in increasing capacities. 

The UAE has also been producing more than its mandated quotas for the past few months. 

Therefore, extending the production cuts once more beyond this year may not seem so straightforward as the market makes it to be. 

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China has transformed into the world’s largest car producer and exporter, surpassing traditional automotive powerhouses like Germany and Japan.

This remarkable rise has been driven by massive government investment, a booming domestic market, and a relentless focus on innovation.

China’s domestic market is the world’s largest for cars — nearly as big as the American and European markets combined.

This immense demand prompted automakers to ramp up production, supported by state-of-the-art automation and robust government backing.

Yet, as the Chinese economy slowed and consumer spending declined, domestic sales struggled to keep pace with the country’s ballooning production capacity.

Currently, China has the infrastructure to produce nearly double the number of cars its consumers demand.

To manage this surplus, Chinese automakers have increasingly shifted their focus to international markets, exporting vehicles at an unprecedented scale.

Electrifying the world: China’s dominance in EV exports

China has emerged as the undisputed leader in the electric vehicle (EV) revolution.

In 2022, the country exported 1.7 million electric cars — nearly 50% more than Germany, the second-largest EV exporter.

Brands like BYD and NIO are becoming household names globally, offering cutting-edge EVs at competitive prices.

Europe is the top destination for Chinese EVs, where compact models align with consumer preferences and environmental regulations.

Southeast Asia, another key market, is drawn to the affordability of Chinese EVs.

Additionally, plug-in hybrids, which combine gasoline engines with electric motors, are gaining traction in regions lacking extensive charging infrastructure.

China’s dominance in EVs is the result of a long-term strategy.

Over the past 15 years, the Chinese government has invested heavily in the development of EV technology, reducing reliance on imported oil and fostering domestic innovation.

Between 2003 and 2013, then-Premier Wen Jiabao made EVs a national priority.

He appointed Wan Gang, a former Audi engineer, as the minister of science and technology, granting him vast resources to propel China to the forefront of EV development.

These efforts have paid off. Today, half of Chinese car buyers opt for battery electric or plug-in hybrid vehicles.

Until recently, these purchases were incentivized with generous government subsidies. Automakers have also benefited from low-interest loans, tax breaks, and access to affordable land and energy.

The scale of government support has not gone unnoticed.

The European Union recently introduced anti-subsidy tariffs to counter what it views as unfair advantages, reflecting concerns about China’s overwhelming lead in the EV sector.

Managing the gasoline car surplus

While EV exports capture headlines, traditional gasoline-powered cars remain a significant part of China’s automotive exports.

As Chinese consumers rapidly transition to EVs, demand for gasoline cars has plummeted, leaving manufacturers scrambling to offload surplus inventory overseas.

Russia has emerged as a major market for these vehicles, with sales surging after Western automakers exited following the Ukraine conflict.

Middle- and lower-income countries in Latin America and the Middle East have also embraced Chinese gasoline cars, drawn by their affordability.

China’s capacity to produce internal combustion engine (ICE) vehicles exceeds 40 million units annually — more than twice the domestic demand.

The result has been the shuttering of some assembly plants, while others continue operations by exporting cars at steep discounts.

This approach has allowed Chinese automakers to maintain production levels and avoid extensive factory closures, even as the domestic market shifts toward electric mobility.

Tariffs and global resistance: Can China be slowed?

China’s aggressive push into global automotive markets has not gone unchallenged.

Governments worldwide, from the United States to the European Union and beyond, have implemented tariffs to protect their domestic industries.

These tariffs take various forms. The United States applies a flat tax on imported Chinese vehicles, while the European Union imposes duties based on the estimated subsidies Chinese automakers receive.

Countries like India and Brazil have also introduced protective measures to shield local manufacturers from Chinese competition.

Despite these barriers, analysts believe that tariffs alone may not be enough to stem China’s dominance.

Chinese automakers have significant cost advantages, particularly in the EV segment.

A study by UBS found that BYD’s EVs cost 30% less to produce than comparable models from Western automakers.

Much of this cost efficiency stems from China’s control over the EV battery supply chain, which gives its manufacturers a significant edge.

The road ahead: Sustained dominance in global markets

China’s ability to dominate the global car industry lies in its unique combination of government support, innovation, and strategic investment.

While tariffs and geopolitical tensions pose challenges, they are unlikely to derail China’s momentum.

As the global automotive landscape shifts toward electric mobility, China’s early and sustained investment in EV technology ensures its continued leadership.

Simultaneously, its ability to offload excess gasoline-powered cars to international markets highlights the adaptability of Chinese automakers.

The road ahead for the global auto industry will likely be shaped by China’s dual strategy: pushing the boundaries of EV technology while leveraging its existing capacity to maintain a strong presence in traditional car markets.

For now, the world’s automakers will need to contend with a formidable competitor that shows no signs of slowing down.

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Adani Group founder Gautam Adani broke his silence on Saturday regarding allegations by US authorities linking him and his conglomerate to a $265 million bribery scheme.

Addressing the claims for the first time during a live-streamed speech at an awards ceremony in Jaipur, Adani emphasized his group’s commitment to world-class regulatory compliance and resilience in the face of adversity.

“Less than two weeks back, we faced a set of allegations from the US about compliance practices at Adani Green Energy. This is not the first time we have faced such challenges,” Adani said.

He asserted that “every attack makes us stronger, and every obstacle becomes a stepping stone for a more resilient Adani Group.”

The US indictment, filed in November 2024, accuses Gautam Adani, his nephew Sagar R. Adani, and others of paying $250 million in bribes to Indian government officials to secure solar energy contracts worth over $2 billion.

The charges also allege that Adani and his associates concealed these activities while raising funds from US investors.

The allegations have caused significant turbulence in the markets, with shares of Adani Enterprises falling by 23%, marking their lowest point in a year, and Adani Green Energy shares plummeting by over 19%.

Adani Group has firmly denied the accusations, calling them “baseless” and promising to pursue all available legal remedies.

In his speech, Gautam Adani reaffirmed the group’s commitment to compliance and transparency, stating, “Negativity spreads faster than facts, and as we work through the legal process, I want to re-confirm our absolute commitment to world-class regulatory compliance.”

Political ties under scrutiny

The indictment has reignited scrutiny over Gautam Adani’s close ties to Indian Prime Minister Narendra Modi. Both hail from Gujarat and have risen to prominence in parallel, with Adani’s business empire significantly benefiting from government policies prioritizing infrastructure development and renewable energy.

Critics, including opposition leader Rahul Gandhi, have long accused Modi of favoring the Adani Group in awarding domestic and international contracts.

These allegations have amplified concerns over the influence of political connections on corporate success in India, raising questions about transparency and fairness in the awarding of large-scale government contracts.

Financial and reputational fallout

The fallout from the indictment has dealt a heavy blow to Adani’s corporate empire. Stocks of several Adani Group companies have tumbled, reflecting investor concerns over the long-term implications of the allegations.

Adani Enterprises and Adani Green Energy, two of the group’s flagship companies, have been particularly affected, with analysts noting a potential erosion of investor confidence.

Despite these challenges, the Adani Group remains focused on weathering the storm.

The group’s finance chief recently rejected the allegations, and the Indian government has stated that it has not received any formal requests from US authorities regarding the case.

As the legal proceedings unfold, the case marks a critical moment for the Adani Group, with its reputation, market stability, and future growth hanging in the balance.

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