Strategists on Wall Street are increasingly looking beyond the artificial intelligence trade for fresh drivers of the US equity rally, as concerns grow that enthusiasm for AI-linked stocks may be cooling.

Attention is now shifting toward companies tied to middle-income consumer spending, which some investors see as better positioned to benefit from a broadening economic expansion in 2026.

A team at Goldman Sachs Group, led by strategist Ben Snider, has identified a range of stocks that could gain as household finances improve and spending accelerates.

Their focus is not on essential goods alone, but increasingly on discretionary products and services that consumers buy when confidence rises.

Goldman targets middle-income consumer spending

In a note to investors dated January 6, Snider and his colleagues argued that stocks exposed to middle-income consumers are “particularly attractive” at this stage of the cycle.

The team expects real income growth for this group to accelerate, which will support higher sales growth for companies with steady demand and relatively thin margins.

Goldman’s preferred sectors include healthcare providers, materials producers, and makers of everyday consumer goods.

However, the strongest conviction lies with businesses selling “nice-to-have” products rather than necessities.

This includes retailers of upscale apparel and accessories, household goods manufacturers, tour operators, and casinos.

The call reflects Goldman’s broader expectation that value stocks will continue to outperform into early 2026.

According to the firm, easing pressure from tariffs introduced under President Donald Trump, a stabilising labour market, and tax rebates linked to last year’s major legislation should all help underpin consumer spending.

Retail stocks gain as investors rotate away from AI

The shift in sentiment comes as investors look for alternatives to the AI trade that has dominated markets for the past three years, largely driven by the so-called “Magnificent Seven” technology companies.

With valuations stretched in parts of the tech sector, some investors are increasingly exploring areas that have lagged in recent years.

The S&P Retail Select Industry Index, which includes companies such as CarMax, Etsy, and Academy Sports & Outdoors, is already showing signs of renewed interest.

The index is up 3.5% since the start of the year and has gained 8.8% since early November, coinciding with the peak holiday shopping season.

Economists surveyed by Bloomberg expect the US economy to grow by 2.1% this year, with consumer spending providing a key boost.

This outlook has supported a gradual rotation into more traditional value-oriented sectors.

“There is a repricing of economic growth higher,” said Charlie McElligott, cross-asset macro strategist at Nomura Securities International.

He added that such a shift tends to favour value stocks over higher-priced growth names.

Dick’s Sporting Goods highlights early winners

One early beneficiary of the rotation has been Dick’s Sporting Goods.

Shares in the US retailer have risen 6.1% in the first four trading days of 2026, recovering some of the ground lost in 2025, when the stock fell 13%.

Options activity suggests some investors are betting on further gains.

Susquehanna International Group, in a Bloomberg report, said a recent trade could generate up to $3.5 million if the stock moves back toward its early-2025 high of $250 a share.

Dick’s is among several retailers highlighted by Goldman as having strong exposure to rising middle-class wealth, alongside Burlington Stores, Best Buy, Five Below, Levi Strauss, and Gap.

While traditional retailers continue to face competition from e-commerce giants, the search for value amid lofty tech valuations appears to be drawing investor interest elsewhere.

For now, as the AI rally shows signs of fatigue, Wall Street’s attention is increasingly turning to the US consumer.

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Wells Fargo analysts believe a combination of tax refund spending, stronger earnings in lagging sectors, and fresh liquidity from the Federal Reserve could spark a “reflation” in equities.

In a note led by strategist Ohsung Kwon, the investment firm said heavily shorted names in the “Russell 3000” may be particularly well-positioned for a rebound.

With short interest elevated, any improvement in fundamentals could trigger sharp rallies. Among stocks it singled out are – Herc Holdings, Vera Therapeutics, and Matador Resources.

Wells Fargo rates all three at “overweight” and sees them as potential beneficiaries of an expected short squeeze ahead. Here’s what HRI, VERA, and MTDR have in store for investors in 2026.

Herc Holdings Inc (NYSE: HRI)

Equipment rental specialist Herc has endured a difficult stretch, with shares currently down more than 20% versus their 52-week high.

Much of this weakness has stemmed from its H&E acquisition, which initially created integration challenges. However, analysts believe those issues are now in the rearview mirror.

KeyBanc experts – for example – upgraded HRI stock in their latest research note to “overweight”, with a $200 price objective indicating potential upside of more than 20% from here.  

According to the investment firm, the H&E deal synergies could reach $125 million by year two.

With IT systems integration complete and Salesforce stability restored, Herc shares appear better-positioned to capture efficiencies and deliver margin expansion.

For short sellers, that improving backdrop could prove painful in 2026.

Vera Therapeutics Inc (NASDAQ: VERA)

Biotech firm Vera Therapeutics has nearly doubled over the past two months, but Wells Fargo sees it pushing higher still over the next 12 months.

The company’s lead drug candidate, atacicept, is advancing toward commercialisation in a multi-dollar market.

BofA analysts maintain a “buy” rating on VERA shares, citing confidence in the therapy’s potential to exceed consensus expectations.

With biotech sentiment improving and short interest still elevated, Vera stock could benefit from both fundamental progress and technical tailwinds.

At the time of writing, it’s trading decisively above its major moving averages (50-day, 100-day, 200-day), which is often interpreted in technical analysis as a strong bullish signal.

Matador Resources (NYSE: MTDR)

Oil and gas producer Matador rounds out Wells Fargo’s basket of short-squeeze candidates.

The Dallas-headquartered firm has faced volatility alongside the broader energy sector, but experts argue its fundamentals remain intact.

Matador has steadily expanded production in the “Permian Basin” – while maintaining disciplined capital spending and shareholder returns.

Wells Fargo sees MTDR stock as undervalued relative to peers, particularly given its solid balance sheet and operational efficiency gains.

With shorts betting against Matador shares, any sustained rebound in oil, especially after the US-Venezuela conflict, could force rapid covering.

Note that MTDR currently pays a healthy dividend yield of 3.64% as well.

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US stocks hit record highs on Tuesday, fueled by renewed investor confidence in risk assets, as markets shrugged off concerns surrounding the US military operation in Venezuela.

The Dow Jones Industrial Average climbed nearly 1% to trade as high as 49,209.95, fresh record intraday territory, while the S&P 500 and Nasdaq Composite each posted solid gains of around 0.6%.

A broad-based rally, driven by surging AI and mega-cap tech stocks, signaled that investors regained confidence in growth equities—fueling Wall Street’s historic move.​

Indices: Midday numbers on Tuesday

The Dow’s push past 49,000 marked the second consecutive record-setting session for the blue-chip index, extending Monday’s 1.2% surge that itself took the Dow to an all-time closing high.

The Dow had rallied roughly 475 points, with the gains distributed broadly across financials, consumer discretionary, materials, and industrials.

The S&P 500 climbed 0.6% to trade near 6,930, while the Nasdaq Composite also gained 0.6% toward the 23,475 level.

Advancing stocks outnumbered decliners across the market, with traders noting a healthy mix of breadth supporting the rally, a sign that gains weren’t confined to a handful of mega-cap names.​

The market’s willingness to buy risky assets despite headline geopolitical risk reflected what traders call a “risk-on” sentiment.

That’s code for: investors are confident enough about economic growth and corporate earnings to push capital back into stocks that had lagged earlier in the week.

Tuesday’s rally followed Monday’s geopolitically-tinged 1.2% Dow surge, which had been driven partly by energy stocks betting on US access to Venezuelan oil reserves following the Trump administration’s January 3 operation. ​

AI sector rally: From cloud to chips to software

Amazon led the charge among megacap technology names, climbing more than 3% and helping to lift the three major indexes during midday trading.

The e-commerce and cloud-computing giant has emerged as a favourite among investors betting on sustained AI infrastructure spending, particularly its Amazon Web Services (AWS) division.

Meanwhile, Micron Technology jumped approximately 7.88% after a banner session that extended gains from earlier in the week when the memory-chip maker surged on optimism over high-bandwidth memory (HBM) demand.

​Analysts attributed the sector strength to renewed appetite for stocks tied directly to AI buildout.

The rally also reflected what strategists call the “January Effect,” a seasonal tendency for tech and growth stocks to gain traction as investors reinvest year-end bonuses and pension funds rebalance their portfolios.​

Within the broader market, the semiconductor sector stood out as the strongest performer.

Nvidia, despite its slightly muted gains, was still holding near record levels, and the Philadelphia Semiconductor Index, which tracks the sector’s biggest players, was up solidly on the day.

This broad chip-sector strength underscores a simple reality: after a punishing December marked by profit-taking, January is shaping up as a “reload” month for AI-focused investors. ​

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Micron stock (NASDAQ: MU) jumped more than 8% on Tuesday as investors piled back into memory chip plays following a blistering December earnings beat.

The rally reflects a broadening belief that Micron could become the next breakout winner in semiconductors if artificial-intelligence data-center demand continues to tighten memory supply and lift prices.

With Micron guiding for record revenue and earnings in the coming quarters, investors are wondering if this is the moment when memory becomes as critical to the AI infrastructure story?​

Why Micron stock is rising today

The surge reflects a potent combination of institutional buying, fresh earnings optimism, and a dawning realisation that memory is becoming a structural constraint in AI infrastructure.

Micron delivered record fiscal Q1 2026 results, crushing analyst expectations.

Revenue came in at $13.64 billion, beating consensus by roughly $800 million and up 57% year-over-year.

Earnings per share hit $4.78, nearly $1 ahead of estimates, and free cash flow reached $3.9 billion, the highest in company history.​

But the real shocker was Q2 guidance.

Micron forecasted revenue of $18.7 billion for the second fiscal quarter, a staggering $4.5 billion above what Wall Street expected.

Similarly, the company guided for EPS of $8.42, nearly doubling the consensus estimate of $4.49.

These aren’t just beats; they are paradigm shifts that have forced analysts to completely reprice Micron’s earnings trajectory for 2026.​

The fundamental driver is memory scarcity.

Conventional DRAM prices are forecast to surge 55-60% quarter-on-quarter in Q1 2026, while server DRAM, the most critical type for AI data centers, is expected to jump more than 60% in a single quarter.

High-bandwidth memory (HBM), the specialised memory used on Nvidia and other AI accelerators, is rising 50-55%, with custom HBM for specialised AI chips climbing even faster.

These aren’t temporary blips as supply remains constrained and cloud providers are pulling forward orders, creating a virtuous cycle where demand outpaces production.​​

What analysts say

Micron’s earnings update has triggered a repricing across the Street.

Morgan Stanley raised its price target to reflect the new guidance, with the firm now projecting that Micron could be a multi-year beneficiary of the memory supply crunch.

Other analysts have followed suit, with consensus price targets climbing 30% in the two weeks after the earnings release, and high-end targets from boutique firms already reaching $350.​

The bull case is straightforward: AI infrastructure demand for memory is growing faster than supply.

Data center memory density per server is rising, HBM capacity is sold out through much of 2026, and manufacturers like Micron are being deliberately cautious with capital expenditure to avoid a cyclical bust.

As long as AI spending remains robust, memory prices should stay elevated.​

The near-term catalyst is the next two quarters.

Micron’s Q2 guidance almost certainly will be beaten again as cloud providers continue to order ahead of supply tightness.

For 2026, institutional investors see a path for the company to double net income even from these elevated levels if pricing holds and utilisation stays strong.​

However, there are risks.

If memory prices normalise faster than expected, a classic risk in semiconductor cycles, margin expansion could reverse.

Competitors like SK hynix and Samsung are also racing to add HBM capacity, and once that comes online later in 2026, pricing pressure could intensify.

Additionally, if macro growth slows or cloud providers pull back on capex, the entire thesis collapses.​

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The Elliott Wave roadmap shows Walmart stock (NASDAQ: WMT) will achieve new heights through one more bullish phase before it enters an extended period of market stability.

The market dip in April 2025 started the advance, which now positions the stock to reach its $111–$120 target zone according to an analysis from January 6, 2026.

The company made its decision based on two main elements, which were customer needs for grocery items and its growing digital advertising business.

The Motley Fool reported on Jan. 6, 2026, that Walmart’s ad revenue rose 53% year over year in fiscal 2026’s third quarter, while its scale keeps shoppers coming back for essentials.

The stock price exists between $111 and $120 because of its April 2025 market recovery.

The Motley Fool reports that grocery sales, together with a 53% increase in advertising, create a positive environment for the company.

Walmart stock: Technical setup and near-term path

An Elliott Wave analysis published on Jan. 6, 2026, says Walmart’s latest rally originated from the $86–$77 “Blue Box” area during the April 2025 sell-off.

The stock reached new all-time highs after completing its wave IV pullback, which formed the final part of wave V.

The current market data shows that three swings have occurred, which indicates the market sequence remains unfinished because it needs one additional swing to complete its five-wave upward movement from the  April bottom.

The report indicates Walmart stock operates within its first target range of $111 to $120 while warning investors to stay away from buying strength during the ongoing wave (III) formation.

The roadmap predicts that the market will experience a bigger wave (IV) decline, which will create conditions for the upcoming market surge.

The weekly bullish cycle functions as usual according to this view because investors treat market drops as opportunities to purchase assets while the market continues its upward movement.

Consumer trends and Walmart’s margin levers

The Motley Fool reported that consumers cut back their spending during 2025 while they chose to cook at home, which worked in Walmart’s favor because the company leads the market in grocery sales.

The publication demonstrates how Walmart uses its large size to achieve better results through its stores, which function as distribution centers for fast delivery services and its ability to buy large quantities at discounted rates, which maintains affordable prices for customers.

Digital advertising has started to develop as a new margin opportunity that extends past its current use in retail operations.

The Motley Fool noted that ad revenue jumped 53% year over year in fiscal 2026’s third quarter (ended Oct. 31, 2025).

The report shows that higher advertising revenue will enable profit margin growth because the company maintains a current profit margin of 3%.

Fast-food contrast, Wendy’s pressure in 2025

Restaurant companies face financial difficulties because consumers have shifted their buying habits, which affects their stock market performance.

The Motley Fool showed Wendy’s stock value decreased by 49% during 2025, while the company’s 6.76% dividend yield failed to protect investors from the stock price drop.

The third-quarter financial results from Wendy’s showed declining revenue alongside reduced net income because customers started to avoid the restaurant because of rising fast-food prices.

The technical roadmap indicates that investors should monitor Walmart stock performance until it reaches the end of its current upward trend before the market experiences a general price correction (IV).

The analysis shows that the weekly cycle maintained its bullish trend during this time period.

The research will use two vital indicators, which consist of grocery market patterns and Walmart advertising revenue data.

The Motley Fool announced that the company aims to reach $1 trillion market value during 2026 while it executes its expansion plan.

The company needs to execute its plans successfully because its current growth initiatives continue to expand.

The market continues to move upward because technical indicators indicate that prices will reach their peak before the market enters a long period of stability.

The market benefits from two positive elements, which stem from decreased consumer spending and rising advertising revenue.

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The Nikkei 225 Index retreated by 1% today, Jan. 7, to ¥52,000, down from this week’s high of ¥52,590. It dropped as the ongoing geopolitical tensions between China and Japan escalated.

The China-Japan crisis has escalated

The Nikkei 225 Index dropped as investors reacted to the escalating geopolitical crisis between Japan and China. In a statement this week, China announced controls on exports to Japan for military use, intensifying a crisis that has been going on since Sanae Takaichi became prime minister. 

China announced that it will block the sale of all dual-use items for military use, including rare earth materials. The country blamed Japan’s statement that it may intervene in the Taiwan Strait.

Japan protested the announcement, noting that it may impact more than 40% of the shipments. It then asked China to withdraw the guidance, with a minister saying:

“The measures target only our country and deviate significantly from international practice. We intend to carefully examine and analyze the details and consider necessary responses.”

Analysts believe that many companies in the Nikkei 225 Index will be affected. The most notable ones are automakers like Toyota, Mazda, Mitsubishi, and Honda. These companies mostly rely on rare earth materials, mostly from China. 

Toyota stock dropped by over 1.65% in New York, while Honda Motor was down by 1.7%. Nissan shares also fell by nearly 2%.

Other companies that may be impacted are Mitsubishi Heavy, Hitachi, Itochu, and Hamamatsu Photonics. On the other hand, rare earth companies like Toyo Engineering soared by over 20% as investors anticipated more demand since China accounts for 70% of the supply. 

On the positive side, there are chances that the two countries will reach an agreement later this year. A good example of this is what happened between the US and China last year. 

Meanwhile, the Japanese yen has remained stable as the crisis has escalated in the past few weeks. The USD/JPY exchange rate was trading at 156.51 on Wednesday, inside a range it has been at in the past few weeks. 

Japanese bond yields have remained steady in the past few days. The yield of the ten-year was trading at 2.10%, a few points below the highest point this year.

Nikkei 225 Index technical analysis 

Nikkei 225 Index chart | Source: TradingView

The daily timeframe chart shows that the Nikkei 225 Index was trading at ¥52,000, down from this year’s high of ¥52,590. The current level is above the upper side of the symmetrical triangle pattern, a common bullish sign.

It has remained above the 50-day and 100-day Exponential Moving Averages (EMA). Also, it has remained above the Supertrend indicator. Therefore, the most likely forecast is bullish, with the next key resistance at ¥53,000. On the flip side, a drop below the support at ¥51,500 will invalidate the bullish outlook.

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Global markets moved cautiously in Asian trading as investors digested political upheaval in Venezuela, fresh trade tensions between Japan and China, and renewed rhetoric from Washington over Greenland.

Oil prices extended losses, resource stocks diverged, and currencies held steady as traders looked ahead to key US economic data later this week.

Asian markets slip as crude takes a hit

Crude futures slid while resource-related equities advanced in parts of Asia, reflecting mixed sentiment over global growth and energy supply.

US crude fell 1.5% to $56.23 a barrel, while Brent declined 1.17% to $59.99, extending losses after comments from US President Donald Trump on Venezuela’s oil reserves.

Japan’s Nikkei index fell 1.28%, weighing on regional benchmarks, while MSCI’s Asia-Pacific shares outside Japan slipped 0.4%.

In contrast, Australia’s S&P/ASX 200 index rose 0.1%, supported by commodity producers after an overnight surge in industrial metals prices.

Copper had hit a record high in the prior session, while nickel jumped more than 10% on supply concerns, though copper eased slightly in Asian trading.

The dollar held most of its recent gains, with the dollar index almost unchanged at 98.56.

The euro traded at $1.17, while the yen weakened marginally to 156.48 per dollar.

Gold prices slipped 0.5% to $4,468 an ounce, while bitcoin fell 1.07% to around $92,711.

Venezuela to supply oil to the United States

Oil markets were pressured by Trump’s announcement that Venezuela would “turn over” between 30 million and 50 million barrels of crude to the United States, to be sold at market prices.

Trump said the proceeds would be controlled by the US government and used to benefit both countries following the capture of Venezuelan leader Nicolás Maduro over the weekend.

The volumes cited would represent roughly 30 to 50 days of Venezuelan oil production before the US imposed a partial blockade last month, though analysts noted the move is more politically significant than economically transformative.

West Texas Intermediate fell as much as 2.4% after Trump’s comments before stabilizing near $56.40 a barrel.

Venezuela holds the world’s largest proven crude reserves, but years of underinvestment and sanctions have reduced output to less than 1% of global supply.

Analysts say it would take years and billions of dollars to meaningfully revive production.

Trump did not specify the exact origin of the oil, though Venezuela has accumulated a backlog of unsent crude in storage tanks and aboard ships since the blockade began.

Chevron remains the only US company exporting Venezuelan oil under a sanctions exemption, having booked at least 11 vessels to load crude from government-controlled ports.

Japan criticizes China’s export controls

Beijing announced a ban on exports of dual-use items to Japan that can have both military and commercial applications, effective immediately.

Tokyo lodged a formal protest, calling the move unacceptable and a deviation from international practice.

Japan’s Chief Cabinet Secretary Minoru Kihara said the government would closely examine the impact and consider appropriate responses.

Estimates suggest that dual-use items account for more than 40% of Japan’s imports from China, its largest trading partner.

Concerns that the restrictions could extend to rare earths weighed on automaker shares while boosting stocks linked to rare-earth alternatives.

Economists warned that prolonged restrictions could significantly dent Japan’s economy, given its heavy reliance on China for critical materials.

US plans for Greenland draw scrutiny

Adding to geopolitical uncertainty, the Trump administration signaled it is considering “a range of options” to acquire Greenland, including the possible use of the US military, White House press secretary Karoline Leavitt told CNBC.

The comments drew pushback from Denmark and other European NATO members, who reiterated that Greenland’s future is for Denmark and Greenland alone to decide.

Trump has argued that Greenland is vital for US national security, citing Russian and Chinese activity in the Arctic.

While Secretary of State Marco Rubio reportedly told lawmakers the administration’s preference is to buy the territory, the rhetoric has raised concerns among US allies.

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Japan’s top government spokesperson condemned China’s ban on exports of dual-use items as “absolutely unacceptable and deeply regrettable” on Wednesday, marking a significant escalation in the diplomatic dispute between Asia’s two largest economies.

Dual-use items are defined as goods, software, or technologies possessing both civilian and military utility. 

A key example is certain rare earth elements, which are indispensable components in the manufacture of advanced technologies like drones and microchips. 

Due to their potential for military application, the trade and export of these dual-use items are often subject to strict regulatory controls and international scrutiny.

Diplomatic tensions boil over

Japanese Prime Minister Sanae Takaichi sparked a diplomatic incident with Beijing after she stated that a Chinese assault on Taiwan could constitute an “existential threat” to Japan. 

The comment reignited tensions over the status of Taiwan, a self-governed island that China claims as its sovereign territory. 

The statement by Takaichi implied that Japan might be compelled to intervene militarily to protect its own security interests if China were to invade, potentially drawing Tokyo into a conflict. 

Beijing vehemently opposes any foreign interference in what it considers a purely domestic matter, escalating the geopolitical risk in the region.

The escalating diplomatic dispute saw Beijing demand a retraction of certain remarks, a demand that Japan’s Prime Minister has refused to meet. 

This non-compliance has triggered a chain of retaliatory measures from China.

The most recent and significant of these countermeasures, announced on Tuesday, is a prohibition on the export of dual-use items—goods with both civilian and military applications—specifically when intended for military use. 

This step is a clear escalation, leveraging economic tools to exert pressure following the sustained refusal to retract the controversial statements.

“A measure such as this, targeting only our country, differs significantly from international practice, is absolutely unacceptable and deeply regrettable,” Japan’s Chief Cabinet Secretary Minoru Kihara told a daily press conference on Wednesday, according to a Reuters report.

He, however, refused to discuss the potential effects on Japanese industry, stating that the specific items to be targeted were still unknown.

Despite a global rally that saw US and European benchmarks reach record highs, the market reaction to the news in Japan was somewhat subdued. 

Japanese shares, in contrast, were lower on Wednesday. The broader Topix index of equities fell by 0.55%, with mining shares experiencing the steepest decline, dropping 3.2%.

Ban on rare earth minerals?

The Chinese Communist Party-owned newspaper, China Daily, reported on Tuesday that Beijing is contemplating a wider restriction on rare earth exports to Japan by tightening the license review process.

Analysts suggested that such a development could profoundly impact the manufacturing centre, particularly its crucial automotive industry.

Despite Japan’s efforts to diversify its rare earth supply since China restricted exports in 2010, the country still sources approximately 60% of its total rare earth imports from China.

A three-month Chinese restriction on rare earth exports, similar to the 2010 event, could result in a 660 billion yen ($4.21 billion) loss for Japanese businesses and reduce Japan’s annual gross domestic product by 0.11%. 

This assessment was provided by Nomura Research Institute economist Takahide Kiuchi in a note published on Wednesday.

A year-long ban is estimated to decrease China’s GDP by 0.43%.

Despite this, China Customs data, though subject to some delay, has not yet indicated a drop in rare earth exports to Japan. 

In fact, exports for November—the most recent month for which data is available—increased by 35% to 305 metric tons, marking the highest volume for the past year.

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Chevron and private equity group Quantum Energy Partners are teaming up on a bid to acquire the international assets of sanctioned Russian oil producer Lukoil, Financial Times reported, citing people familiar with the matter.

The assets are valued by Lukoil at around $22 billion and include oil and gas production, refining facilities, and an extensive network of filling stations across Europe, Asia, and the Middle East.

If successful, Chevron and Quantum plan to split the portfolio between them and hold the assets for the long term, a structure that is seen as more likely to gain approval from the Trump administration.

The bid is being spearheaded by Quantum, which is working alongside its London-based portfolio company, Artemis Energy.

Strategic bid for Lukoil’s non-Russian assets

The proposed transaction targets Lukoil’s entire international portfolio, excluding its Russian operations.

The assets have attracted significant interest as Western governments seek to reduce Russian influence over global energy infrastructure following sanctions imposed on Moscow.

According to people cited in the report, the commitment by Chevron and Quantum to retain ownership and operate the assets over the long term could strengthen their case with US policymakers.

One senior US government official said in the Financial Times report that Washington was seeking a divestment that would place the assets in the hands of American owners and operators “ad infinitum,” rather than investors pursuing a short-term resale.

Quantum was founded by Texan oil tycoon Wil VanLoh and has already engaged with officials in the Trump administration, arguing that its proposal would consolidate American control over strategically important energy assets.

Competitive auction and regulatory hurdles

Chevron and Quantum are the latest entrants in a competitive auction process for Lukoil’s non-Russian assets.

Other bidders include Carlyle Group and Abu Dhabi-based conglomerate International Holding Company, according to a Reuters report.

Exxon Mobil, Saudi Arabia’s Midad Energy, and other suitors expressed interest.

The sale process was triggered in November after Swiss commodities trader Gunvor withdrew from a previously agreed deal with Lukoil.

That transaction collapsed after the US Treasury Department said it would block the purchase and described Gunvor as being under Kremlin influence.

Gunvor, which was co-founded by Gennady Timchenko, a close ally of Russian President Vladimir Putin, has denied any current links to the Russian government.

The US Treasury has permitted companies to negotiate with Lukoil until January 17.

Any final agreement would require US regulatory approval, effectively giving President Donald Trump a veto over the transaction.

Chevron’s interest and market reaction

Chevron had previously considered submitting its own bid for parts of Lukoil’s international business and could be particularly interested in Lukoil’s 5% stake in Kazakhstan’s Tengiz oilfield, which Chevron partially owns and operates.

The potential acquisition comes as Washington continues to tighten sanctions on Russia’s energy sector, having imposed measures in October on the country’s two largest oil producers, Rosneft and Lukoil.

For Chevron and Quantum, the bid represents both a strategic investment opportunity and a politically sensitive transaction that hinges on US approval.

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China has rolled out a new set of e-commerce regulations aimed at controlling how its biggest online platforms compete, signalling a renewed push to stabilise a sector shaken by aggressive discounting and subsidy wars, said a Bloomberg report.

The measures, unveiled on Wednesday, target business practices by major platforms that regulators say have distorted market order and placed growing pressure on smaller merchants.

Coming amid heightened scrutiny since 2025, the rules reflect Beijing’s effort to recalibrate competition in a vast retail ecosystem that touches hundreds of millions of consumers.

New rules for platforms

The guidelines ban large e-commerce platforms from coercing online merchants into participating in promotions or discount campaigns.

Companies such as Alibaba Group Holding Ltd., JD.com Inc., and Meituan have previously been warned against practices that regulators say pressure sellers into price cuts or exclusive arrangements.

The rules are set to take effect in February and follow a series of notices from Beijing cautioning platforms against tactics accused of disrupting fair competition.

Authorities have argued that forcing merchants into platform-wide promotions weakens their bargaining power and undermines sustainable business practices across the sector.

Influencers under scrutiny

Alongside the platform-focused measures, regulators also introduced restrictions targeting online influencers.

A separate set of regulations, jointly published by the State Administration for Market Regulation and the Cyberspace Administration of China, prohibits influencers from making false or misleading claims while promoting products.

This move expands regulatory oversight beyond platforms themselves to the broader digital commerce chain, reflecting the growing role influencers play in driving sales.

Officials have increasingly linked misleading online promotions to consumer harm and market disorder, prompting closer supervision of content creators and livestream commerce.

Market reaction

The announcement weighed on share prices across the sector.

Alibaba’s stock slid as much as 4.2% in Hong Kong, leading declines among peers such as Kuaishou, JD, and Meituan.

The reaction highlighted investor concerns that tighter rules could curb growth strategies built around subsidies and heavy promotions.

China’s regulators have intensified oversight of the retail and e-commerce landscape since 2025, particularly after Alibaba, JD, and Meituan poured billions of dollars into incentives to gain an edge in meal delivery and online shopping.

Watchdogs have repeatedly criticised practices such as no-questions-asked refunds and exclusivity arrangements, arguing that they disadvantage smaller merchants and skew competition.

Pressure on profits

The regulatory push comes against a backdrop of eroding margins across the e-commerce industry. Rampant discounting and prolonged subsidy battles have taken a toll on profitability, especially as consumer demand remains subdued.

In November, Meituan pointed to what it described as irrational competition when it reported its first loss in almost three years, underscoring the financial strain of its three-way rivalry with Alibaba and JD.

China already has an e-commerce law in place, but the latest regulations are designed to directly address platform-specific misconduct.

They also reinforce obligations for companies to protect consumers and user data. Violations can result in warnings and fines, adding another layer of risk for firms that fail to adjust their practices.

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