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MARKETS
💰 Goldman Sachs Forecasts Strong U.S. Economic Growth in 2026
(Credit: The White House)
The Scoop: Goldman Sachs says the U.S. economy is set to accelerate in 2026, pointing to tax cuts, easing tariff headwinds, looser financial conditions, and deregulation—early validation that the Trump administration’s economic agenda is delivering durable growth after absorbing short-term shocks, Fox Business reports.
The Details:
Goldman forecasts 2.6% real GDP growth in 2026, well above the Bloomberg consensus of 2%.
The One Big Beautiful Bill Act (OBBBA) is expected to boost demand and investment:
About $100 billion in additional tax refunds to consumers in early 2026 (≈0.4% of disposable income).
Full expensing for plant and equipment is already lifting forward-looking capital expenditure indicators.
Inflation is projected to cool meaningfully: core PCE falls to just above 2% by end-2026.
Goldman expects unemployment to stabilize around 4.5% in 2026 as growth improves.
What’s Next: If tariffs remain steady and tax and deregulation policies continue, Goldman expects 2026 to mark a clear re-acceleration in U.S. growth—setting the stage for stronger investment, easing inflation, and a more favorable backdrop for job creation as productivity gains from AI begin to materialize.
Market Roundup
🏦 Economy
⭐ Editor’s Pick: U.S. materials firms, including Nucor and Smurfit WestRock, are forecast for 20% earnings growth in 2026—the best in five years—fueled by tariffs. (BBG)
U.S. pending home sales rose 3.3% in November to their highest level since February 2023, marking the first year-over-year gain in over three years amid easing mortgage rates. (YF)
Trump threatened to sue Jerome Powell for "gross incompetence" in managing the Fed’s renovations and pledged to announce a replacement next month. (RTS)
China's factory activity is expected to contract for a ninth consecutive month in December, reflecting persistent weakness in domestic demand and declining manufacturer profits. (INV)
📈 Hot Stock Picks
⭐ Editor’s Pick: Evercore ISI analysts cited resilient consumer demand for online platforms in the second half of 2025 as a catalyst for strong 2026 performance in DoorDash and Expedia shares. (IBD)
GE Vernova is well-positioned for 2026 gains from AI-driven power demand, backed by a $135 billion backlog, 20% EPS growth to $21 in FY27, according to Seeking Alpha. (SA)
Benchmark analyst Mike Hickey named Take-Two Interactive a top pick for 2026, reiterating a buy rating and $300 price target, citing the anticipated Grand Theft Auto VI release. (IBD)
Motley Fool highlighted Rigetti Computing, IonQ, and Quantum Computing as high-growth quantum computing stocks poised for explosive revenue expansion through 2027. (MF)
🏢 Industry
⭐ Editor’s Pick: JD Vance, aided by David Sacks, quietly brokered a reconciliation between Trump and Elon Musk after the pair’s public feud over the Big Beautiful Bill. (WAPO)
Los Angeles tightened rent controls for the first time in over four decades, capping annual increases at 1% to 4%. (NBC)
Lululemon founder Chip Wilson launched a proxy fight, nominating three independent directors to the board in a bid to overhaul governance amid ongoing struggles with sales declines. (WSJ)
Nvidia officially acquired a $5 billion stake in Intel through a private placement of over 214 million shares at $23.28 each. (RTS)
🛢️ Energy & Commodities
⭐ Editor’s Pick: Iran's central bank governor Mohammad Reza Farzin resigned amid widespread protests over a plunging rial—hitting a record low near 1.4 million to the dollar. (OP)
Chinese-flagged oil tankers are proceeding toward Venezuelan ports to load crude despite a U.S.-imposed blockade and recent vessel seizures. (NW)
Gold prices retreated 4% to around $4,344 an ounce from a record high amid profit-taking, while silver plunged over 7% to $71.59 per ounce after touching a fresh peak. (INV)
A revived South Korean tungsten mine has secured a supply agreement with the U.S. government to bolster domestic defense needs. (CBS)
🌕 Crypto
⭐ Editor’s Pick: The market for tokenized equities surged to a $1.2 billion capitalization, with observers likening its trajectory to stablecoins and DeFi. (CT)
Michael Saylor’s Strategy resumed its Bitcoin accumulation with a purchase of 1,229 BTC for approximately $109 million, bringing its total holdings to over 672,000 BTC. (ST)
South Korea's proposed stablecoin framework remains deadlocked amid a dispute between regulators over issuer eligibility. (YH)
Dragonfly Managing Partner Haseeb Qureshi made various crypto predictions for 2026, including Bitcoin surpassing $150,000 by year’s end. (CD)
TECH
💻 Meta Snaps Up AI Startup Manus for More Than $2 Billion
(Credit: Theo Von Show)
The Scoop: Meta has agreed to acquire AI startup Manus in a deal valued at more than $2 billion, snapping up a fast-growing AI agent company with Chinese founders as Silicon Valley intensifies its global race to dominate the next generation of artificial intelligence tools, the Wall Street Journal reports.
The Details:
Manus is a Singapore-based startup best known for AI agents that can perform deep research, generate reports, and build custom websites with minimal human input.
Co-founder and CEO Xiao Hong, known as “Red,” will report to Meta COO Javier Olivan following the acquisition.
Meta plans to keep Manus operating as a paid service while integrating its capabilities across products like Instagram and WhatsApp.
Manus, founded under parent company Butterfly Effect, originated with teams in Beijing and Wuhan before relocating its headquarters to Singapore amid scrutiny over China-linked AI development.
The startup crossed $100 million in annual recurring revenue within eight months of launch and now has roughly 100 employees.
What’s Next: The acquisition positions Meta squarely in the intensifying battle over AI agents, but it also raises fresh geopolitical and regulatory questions, as U.S. lawmakers increasingly scrutinize American tech giants absorbing AI talent and technology with deep roots in China’s research ecosystem.
Tech Roundup
🧠 AI
⭐ Editor’s Pick: Fueled by the AI surge, chipmakers recorded over $400 billion in 2025 sales, with FactSet forecasting combined revenue for Nvidia, Intel, Broadcom, AMD, and Qualcomm to climb to $538 billion in 2026. (WSJ)
A study revealed that over 20% of YouTube Shorts recommended to new users—exceeding 50% when including "brainrot" content—are low-quality AI-generated "slop." (MASH)
Netanyahu discussed advancing AI with Elon Musk in a conference call, as the billionaire announced plans to visit Israel in March for a transportation conference. (TOI)
🤖 Robots & Quantum Computing
⭐ Editor’s Pick: New Scientist's roundup showcases 2025's standout robots, from impressive feats like Robbyant's wheeled R1 cooking shrimp to Unitree G1's kickboxing moves. (NS)
Scientists are engineering tiny defects in diamonds to harness quantum properties, unlocking breakthroughs in computing power, secure encryption, and ultra-sensitive sensors. (FT)
A robot conductor led the Nanchang symphony orchestra in performing an AI-composed piece at a New Year's concert in China's Jiangxi Province. (CGTN)
JD.com and Unitree Robotics will open their first joint store in Beijing tomorrow, featuring hands-on experiences with models like the Go2 quadruped and G1 humanoid robots. (TN)
🚀 Defense & Space
⭐ Editor’s Pick: China launched unannounced large-scale live-fire drills around Taiwan simulating a full blockade, deploying naval, air, rocket, and coast guard forces. (TWZ)
The U.S. Army's 10th Mountain Division activated a new offensive drone unit—Fox Company, 1-10 Attack Battalion—dedicated to lethal unmanned operations in support of its aviation brigade. (MT)
Trump stated he is "very seriously" considering selling F-35 stealth fighters to Turkey amid objections from Israel. (DP)
Poland unveiled the STRATUS "invisible shield," an electromagnetic pulse system designed to silently disable hostile drones. (NGD)
FREEDOM
📢 Ireland to Seek European Union Ban on Anonymous Social Media Accounts
(Credit: Joshua Woroniecki/Pixabay)
The Scoop: Ireland says it will use its upcoming presidency of the European Union to push a sweeping, pro-censorship agenda that would end online anonymity and make government-backed identity verification the default for social media users across Europe, Digital Watch reports.
The Details:
Tánaiste Simon Harris said Ireland wants EU-wide rules forcing users to verify their real identities before posting or interacting online, arguing the move is necessary to police speech and combat what officials label so-called “abuse” and “disinformation.”
The plan would require rewriting parts of the EU’s Digital Services Act, dramatically expanding state power over online identity and expression.
The measures would push platforms toward universal identity checks, centralized verification systems, and tighter monitoring of user behavior.
The push comes after the U.S. imposing visa bans on EU figures, including former European commissioner Thierry Breton, tied to censorship laws.
What’s Next: If Ireland succeeds in setting the agenda during its EU presidency, Brussels could move toward one of the most draconian speech regimes in the democratic world, replacing anonymous online discourse with state-approved digital identities and giving regulators unprecedented control over who can speak, and what can be said, online.
Freedom Roundup
🏛️ Policy & Culture
⭐ Editor’s Pick: Minnesota Republicans demand Gov. Tim Walz's (D) resignation over alleged oversight failures in fraud probes costing billions, many involving Somalian defendants. (FOX)
Google's Year in Search 2025 reveals the assassination of conservative activist Charlie Kirk as the top U.S. trending query. (HILL)
Harvard history professor James Hankins is retiring after 40 years to join the University of Florida's classical education program, citing the erosion of traditional liberal education. (COM)
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DISCLAIMER: The CAPITAL newsletter is for informational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research and consult a qualified financial advisor before making investment decisions. The CAPITAL newsletter and its owner and operator, Josh Caplan, are not liable for any loss or damage resulting from reliance on this information. The CAPITAL newsletter is solely owned and independently operated by Josh Caplan, separate from any employer affiliations.
