Markets in 3 Minutes: Crypto Rally Will Run Out of Steam

Microsoft Corp. shares declined following a report indicating that the company has reduced its expectations for business customer spending on new artificial intelligence products. This news reflects a growing concern about demand in the AI software market.

Bitcoin has rebounded to a two-week high, reflecting a cautious recovery in the digital-assets market following a significant selloff that began in early October. Concurrently, the European Union has finalized a deal to accelerate the phase-out of Russian gas, impacting energy markets. Inditex, the parent company of Zara, reported a rise in November sales, indicating strong consumer spending resilience.

Early-stage investor Plus VC has announced plans to fund over 40 startups in Saudi Arabia by 2026, reflecting the country's growing status as a regional venture capital hub. This initiative aligns with Saudi Arabia's broader economic transformation and its efforts to diversify its economy beyond oil dependency.

The S&P 500 has recently approached an all-time high, yet the technology sector, particularly Big Tech, is not leading this rebound, indicating a shift in market dynamics. This development highlights a growing disconnect between traditional tech giants and broader market performance.

A recent report from Bloomberg Intelligence highlights the challenges facing China's artificial intelligence (AI) sector, indicating that while there is significant investment, the path to profitability remains long and uncertain. The analysis underscores the complexities of scaling AI technologies in a competitive landscape.

YouTube creators are increasingly targeting young children with AI-generated content that claims to be educational, raising concerns about the impact on their cognitive development. As children spend more time on the platform, the prevalence of such videos has sparked debate among parents and educators regarding their educational value.

Salesforce Inc. shares have reached a historically low price, yet investor confidence remains shaky due to escalating concerns that advancements in artificial intelligence (AI) may undermine the company's growth potential.

India is encouraging coal plants to invest in upgrades that will enable them to operate at lower capacities, thereby creating more room for renewable energy sources in the national power grid. This initiative reflects a strategic shift towards integrating a higher percentage of renewables into the energy mix.