The NASDAQ Composite Index continued its upward trajectory, reaching a new record high and closing up 0.5% on Thursday, signaling ongoing strength in the technology-heavy market. This performance comes amidst a backdrop of significant geopolitical discussions and strategic corporate adjustments.
In Europe, German Chancellor Friedrich Merz emphasized the need for clear explanations from the United States regarding how it might take over the provision of weapons that European nations are currently supplying to Ukraine. This call for clarity followed a joint press conference held by Chancellor Merz and UK Prime Minister Keir Starmer, highlighting ongoing discussions about defense arrangements and support for Ukraine. Merz has previously welcomed a plan where the US would supply weapons to Ukraine with European allies covering the financing. Germany, along with other Western allies, has also lifted range restrictions on weapons sent to Ukraine, allowing for strikes on military positions in Russia.
Meanwhile, energy giant Chevron (CVX) is implementing a strategic shift in its Permian Basin operations. The company plans to reduce its active drilling rigs in the Permian from 13 to 9 in 2025. This move underscores Chevron's prioritization of cash flow over growth, with the company aiming to generate $5 billion in free cash flow from the Permian Basin by 2027, assuming oil prices remain at $60 per barrel. Chevron expects to achieve a stable oil output of 1 million barrels per day in the Permian Basin by 2025, a target it aims to maintain for many years.
On the domestic political front, a critical Friday deadline looms for Congress to approve President Trump’s proposed cuts to foreign aid and public broadcasting. The Senate has passed a version of the bill, which includes roughly $8 billion in cuts to foreign assistance programs and $1.1 billion for the Corporation for Public Broadcasting, sending it back to the House for final approval. Additionally, Senator Elizabeth Warren issued a stern warning that the market would "crash" if President Trump were to fire Federal Reserve Chair Jerome Powell. Warren stressed that the independence of the Federal Reserve is crucial for maintaining the stability of financial markets.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.