Author: PAZAMBA

The US stock market ended on a high note this week with the Dow Jones Industrial Average (^DJI), the S&P 500 (^GSPC), and the Nasdaq Composite (^IXIC) all showing considerable weekly gains. The Dow Jones increased approximately 0.5%, the S&P 500 nearly 0.7%, and the tech-heavy Nasdaq leading with gains of about 0.9%. This surge came as a result of the Supreme Court ruling President Trump’s “Liberation Day” tariffs as unlawful, stating that he overreached his powers by imposing them using the International Emergency Economic Powers Act.

In response, President Trump announced plans to impose a new “10% global tariff”. Wall Street was also reacting to slower than anticipated US GDP growth for Q4, which came in at 1.4%. The “core” personal expenditures index, a preferred measure of inflation by Fed rate-setters, rose more than expected in December, causing a watchful eye on the private credit sector.

Amazon’s stocks jumped more than 2% following the Supreme Court’s tariff ruling, as the company sources up to 70% of its goods from China. Other companies anticipated to benefit from the decision, i.e., Home Depot and Five Below, also saw their stocks rise.

Investors and financial bodies are wary of potential stress in the private credit sector following Blue Owl’s decision to halt withdrawals. Despite this, software stock was under pressure, with shares in Salesforce, Intuit, and Cadence Design Systems declining by over 1%, nearly 2%, and almost 3% respectively.

Nasdaq managed to snap a losing streak and climbed 1.5% this week. However, shares in private credit stocks took a dive after Blue Owl Capital announced changes to its investor liquidity following its sales of $1.4 billion in loan assets which created concerns about potential losses in the private loans area.

The “Magnificent Seven” member Nvidia, maintained its stock market gain this year but faces high expectations to exceed estimates and increase forecasts.

In overbought stocks, Deere and Quanta Services led the pack. Overbought stocks, which are signify that a pullback is due, had Deere leading the pack with an RSI of 78. Deere saw a 10% rise in shares following a quarter earnings and revenue beat. Infrastructure services provider Quanta services, with an RSI of 73, rose more than 5% on the week.

On the flip side, oversold stocks, which often indicate room for a rebound, include Blackstone and Apollo Global Management. Apollo Global Management posted a weekly loss of 4% and Blackstone, with an RSI of 27 saw shares down by more than 6%.

Last week, the stock market saw an impressive rebound, breaking various losing streaks. The Nasdaq rose 1.9%, completing its five-week slump, with significant boosts from major tech names like Meta Platforms, Nvidia, and Amazon. Likewise, the S&P 500 witnessed a rise of 1.1% during the week, ending a two-week slide.

Wells Fargo led the banking sector with a 2% gain, trailed closely by Goldman Sachs at 1.9% and Capital One adding 0.5%. Despite concerns over a possible credit crisis due to Blue Owl Capital’s restrictions, most financial stocks successfully remained above the fray.

The U.S. Supreme Court’s ruling against ex-President Donald Trump’s emergency tariffs lifted many consumer-facing companies. However, stocks like Nike that were impacted by these tariffs closed lower as the market anticipates alternative ways for Trump to implement higher levies.

Big tech stocks had their moment of glory as well. Meta revealed its plan to use Nvidia’s chips in its data centers, causing a spike in their stocks, 2.5% for Meta and 3.8% for Nvidia. Amazon saw an increase of 5.6%, becoming the best portfolio performer of the week after Bill Ackman’s Pershing Square significantly increased its stake in Amazon. Alphabet also saw a rise of 3%, making a strong comeback after its post-earnings downtrend.

The week also experienced a credit crisis. Blue Owl Capital’s move to restrict withdrawals from its private debt fund sent ripples through the financial sector, making some people call Blue Owl the “canary in the coal mine”. Shares of large private asset managers like Ares Management, Apollo Global, Blackstone, and KKR were hit hard. Ares and Blackstone dropped the most, declining by 8% and 6.6% respectively while Apollo recovered 1.2% after a 5.6% fall.

Companies to watch in the coming week include Nvidia, reportedly close to finalizing a $30 billion investment deal. HSBC will be reporting its annual results with its stocks up 43% over one year. Other companies expected to release their performance updates include Rolls-Royce, Diageo, and Aston Martin.

Semiconductor company Nvidia has a strong record of beating earnings forecasts, and analysts expect it to report a 67% sales growth to $65.5bn and a 71% jump in earnings per share to $1.52 for the fourth quarter.

The stock market saw a volatile session on Friday, sparked by President Donald Trump’s reaction to the Supreme Court ruling against his emergency tariffs. Despite Trump’s subsequent declaration of a 10% global tariff under Section 122, the S&P 500 ended on a high.

Shares in companies negatively affected by tariffs, such as Nike, initially surged following the ruling, before dropping due to concerns Trump would impose further tariffs. The news also impacted cybersecurity stocks, including CrowdStrike and Palo Alto Networks, which fell after Anthropic announced its new tool Claude Code Security.

In the e-commerce sector, shares in Amazon, Etsy, Shopify, Wayfair, eBay, and Pinduoduo Holdings were boosted by the ruling. Trump’s tariffs have severely impacted e-commerce, leading to layoffs, price increases, and radical alterations of supply chains.

Despite an initial setback, Tesla shares were not unduly affected by the company’s unsuccessful bid to overturn a $243 million verdict in a fatal Autopilot crash suit. Meanwhile, student loan delinquencies escalated under Trump’s leadership, rising to almost 25%, compared to 9% in 2019.

Overall, the week ahead promises more earnings reports, key economic data, as well as potential repercussions from Trump’s newly declared tariffs. The current figures for Dow, S&P, and Nasdaq are not provided in these articles.

1. A combination of earnings reports and market-wide trends impacted stocks, including Klarna, Blue Owl Capital, Omnicom, Lockheed Martin, Walmart, Deere, DoorDash, Etsy, Figma, Carvana, Molson Coors Beverage, Occidental Petroleum, and Six Flags Entertainment. Klarna’s shares dropped by 25% as its Q1 operating income guidance fell short of expectations. Omnicom’s shares surged by 13% after reporting Q4 revenue of $5.5 billion, up almost 28% YoY and announcing a $5 billion share buyback. Deere’s shares rose by 13% after beating top and bottom-line expectations.

2. President Trump signed an executive order invoking the Defence Production Act to compel the domestic production of elemental phosphorus and glyphosate-based herbicides. The move has been contentious, particularly among those alleging that glyphosate, the chemical in Bayer-Monsanto’s Roundup, causes cancer.

3. President Trump announced plans to decide whether to launch military strikes against Iran within the next 10 days. This announcement prompted a rise in U.S. crude oil prices by $1.24 or 1.9%, to close at $66.43 per barrel.

4. Walmart shares slid by over 2% after the company’s guidance for the current fiscal year was softer than anticipated. Despite exceeding Wall Street’s expectations for the fourth quarter, the company anticipates a lower adjusted earnings per share for the full fiscal year, below Wall Street’s forecast.

5. New York Governor Kathy Hochul pulled a proposal which would have allowed commercial robotaxi services, such as Waymo, to operate in some parts of the state. Despite this setback, Waymo’s testing in New York City remains unaffected.

6. Shares of Figma ended up 7% after the company reported Q4 results that exceeded analysts’ expectations, with a 40% YoY growth in revenue. Despite this, some analysts have noted that AI risks remain for software companies.

7. Jim Cramer’s Investing Club suggested that the geopolitical uncertainty and tensions between the U.S. and Iran could be driving some traders to reduce their equity exposure into the forthcoming weekend.

Specific numbers for the Dow, S&P, and Nasdaq are not provided in the provided articles. Similarly, the main gainers and losers in the stock market were not explicitly mentioned. The performance of individual stocks is detailed, but a comprehensive summary is not provided.

In recent stock market trades, Jim Cramer’s Charitable Trust bought 30 shares of Capital One Financial at approximately $208 each, increasing its share count to 580. The trust sold 200 shares of Danaher at roughly $207 and 200 shares of Texas Roadhouse at approximately $189, bringing the respective share counts down to 200. The Seattle Seahawks have announced the franchise is up for sale after their 2026 Super Bowl win. The team is valued at nearly $7 billion, and the sale has the potential to become one of the biggest in NFL history.

The Federal Reserve officials are conflicted about the future direction of interest rates; while some argued for a continued hold until inflation is firmly back on track, some suggested the possibility of rate increases if inflation remains at above-target levels. Anthropic, an AI start-up, is having a disagreement with the Pentagon over how its AI models should be used, particularly regarding their potential use for autonomous weapons or mass surveillance.

Notably, Wingstop shares jumped 13% due to an upbeat outlook for 2026, while Moody’s shares rose 6% after exceeding top-bottom line expectations. Madison Square Garden Sports saw a 13% rise in shares as it announced plans to consider the separation of its Knicks NBA franchise from its Rangers NHL business. However, Republic Services dropped 5% after a 2026 forecast fell short and Axcelis Technologies plunged 15% on its lower than expected Q1 guidance. Shares in GPS popped 15% after strong full-year guidance for 2026.

The FDA has agreed to review Moderna’s mRNA flu shot application, reversing a previous decision and leading to a 6% rise in Moderna’s shares. This approval could enable Moderna to make the vaccine available for the forthcoming influenza season.
Finally, according to a Junior Achievement report, AI’s growing influence on the job market does not seem to deter the optimism of high school students about future employment prospects. 73% of teen respondents believed that AI will either have a mainly positive influence, or no impact at all, on their chances of landing a well-paying job.

Major U.S. stock market indices ended lower, driven by investor concerns about market volatility. Alphabet saw a pull back after a significant fall in its stock price following concerns about shrinking free cash flow due to ambitious capital expenditure plans. They had planned to purchase 50 more Alphabet shares, increasing its weighting to roughly 1.55%. Amazon also saw its stocks slump by about 18%, losing around $450 billion in market value over concerns about its artificial intelligence (AI) spending plans.

AI company Anthropic launched the second version of its AI model, Claude Sonnet 4.6, marking an acceleration in the pace of AI developments in the tech industry and provoking competition with companies like OpenAI and Google.

Palantir announced that it is moving its headquarters from Denver to Miami, following recent trends of companies moving to tax-favorable states such as Florida.

Meanwhile, big movements were seen in the stocks of General Mills, with its shares falling by 7% after lowering its financial outlook for 2026, and Southwest Airlines, enjoying a 6% gain in stocks after receiving an upgrade from UBS to a buy rating. Furthermore, Israeli company ZIM Integrated Shipping Services enjoyed a 30% surge in stocks after German-based international container shipping and logistics company Hapag-Lloyd Aktiengesellschaft announced a $4.2 billion cash and external financing purchase.

Ford Motor spoke about its $5 billion investment in its new generation of all-electric vehicles, which will feature a budding technology used by Tesla in its Cybertruck. The tech, known as a 48-volt electrical architecture, uses the EV’s high-voltage battery to power everything, improving efficiency and saving weight.

1. Apple announced plans to bring an integrated video podcast feature to Apple Podcasts in an effort to compete with Spotify, YouTube, and Netflix. The update will allow users to seamlessly switch between watching and listening to video podcasts, including a new format with adaptive video playback and greater app controls. Apple will charge an impression-based fee for video ad delivery through HLS.

2. Europe’s reliance on foreign payment providers is highlighted by Visa’s sponsorship deal with the International Olympic Committee. The payment company is the only card provider accepted at the Olympic Games. The EU is working on rules to require shops to accept cash, with the ECB hoping to launch a digital euro by 2029.

3. French prosecutors are investigating possible contamination of infant nutrition products by Nestle, Danone, Lactalis, Babybio, and La Marque en Moins. The potential contamination stems from cereulide, a toxin that can cause digestive issues. The companies face potential fines of up to €3.75 million and prison terms up to seven years if found guilty.

4. Despite turbulent market conditions, the S&P 500 maintained its stability, finishing the week at the same level it first reached 112 calendar days ago. However, concerns remain over the fall in Nvidia shares and the decrease in JPMorgan and Goldman Sachs stocks. Some buying opportunities may emerge in the tech sector as AI-capex plans expand for 2026.

5. Parents in the U.S who took out student loans for their children’s education are being urged to take steps to secure affordable repayment plans and loan forgiveness programs. Starting in July, Parent PLUS borrowers will only be able to repay their debt through the new Standard Repayment Plan.

6. Software stocks have suffered this year due to AI fears. However, Citi strategists see potential rebound opportunities for certain stocks, including Microsoft and Palantir.

7. China’s rapid advancements in AI are threatening U.S. dominance in the market. The country’s tech shock, supported by massive supply chain and backed by extensive investment, is quickly accelerating.

Dow, S&P, and Nasdaq numbers were not provided in the articles.

The stock market experienced significant volatility this week due to various factors including reports on the Federal Reserve’s interest rate outlook, artificial intelligence fears, mixed economic signals, and significant data releases. The S&P 500 and tech-heavy Nasdaq declined by 1.4% and 2% respectively for the week, while the Dow Jones Industrial Average had a 1.2% weekly loss despite hitting a record high close on Tuesday.

Key gainers of the week were companies like Walmart and industrial giant Deere, with respective climbs of over 20% and 30% this year. On the downside, the biggest losers were software, financial, and AI-reliant companies. Software stocks were the first to fall, followed by financials and real estate players. Tech companies grappling with AI disruption, like AST SpaceMobile, also recorded significant losses, contributing to Nasdaq’s overall drop.

News on the Federal Reserve’s take on inflation and interest rates fueled speculations, with the market currently favoring two to three reductions in borrowing costs in 2022. The US Labor Department reported a significant increase in jobs in January, pushing unemployment rates lower, while inflation statistics showed a lower than expected increase in consumer prices. The announcement that AST SpaceMobile plans to raise money led to an 18.9% drop in its shares as this would result in shareholder dilution.

In the UK, GDP growth figures showed a sluggish 0.1% increase in Q4 2025, lower than the expected 0.2%. Week performances of Barclays and NatWest exceeded estimates, positively influencing the banking sector.

Looking forward, the market will likely continue to respond to shifts influenced by AI adaptations, Fed rate cuts, and economic data relating to inflation and employment rates.

US senators are seeking to extend the retroactive payments timeline from six months to one year for the Social Security Fairness Act beneficiaries. According to UBS analysts, the disruption caused by AI could result in tens of billions in corporate loan defaults over the next year. In midday trading, biotech firm Moderna saw its stocks climb by 5%, while shares of Rivian Automotive, the electric truck manufacturer, surged by 26%. Conversely, DraftKing’s shares fell 13% due to disappointing revenue forecasts and Maplebear, the parent company of Instacart, saw its stocks slide over 7% after highlighting ’emerging AI-powered platforms’ as a potential risk, despite exceeding fourth quarter expectations. Additionally, Anthropic appointed Chris Liddell, a former CFO of Microsoft and a former Trump aide, to its board of directors. Roku’s shares jumped 8% following better-than expected Q4 results and strong future guidance. In January, inflation decelerated due to easing prices across a number of goods including food and gasoline. Finally, Venezuela’s oil revenue, which currently stands above $1 billion, will no longer be deposited in an account in Qatar. However, final numbers for Dow, S&P, and Nasdaq are not provided in the text.

Investors remain concerned about the disruptive potential of artificial intelligence, leading to a series of sell-offs in commercial real estate stocks with CBRE tumbling 12.8%, Jones Lang LaSalle falling 11.1%, and Hudson Pacific Properties shedding over 8%, while SL Green Realty dropped 8% and BXP shed 5.4%. Fear related to AI disruption similarly affected trucking and logistics stocks, with shares of C.H. Robinson Worldwide and RXO plummeting 20% and 25% respectively.

Crocs and Zebra Technologies experienced gains as a result of upbeat earnings and revenue forecasts, with Crocs seeing shares surge 21% and Zebra Technologies stocks jump nearly 13%. Conversely, the Cisco Systems and AppLovin dropped significantly – 12% and 18% correspondingly. Cisco’s forecast disappointed due to rising memory chip costs whereas despite beating profit and sales estimates AppLovin saw a major fall.

Meanwhile, the stock market is expected to react significantly to Friday’s consumer price index (CPI), which could dictate the outcome of a turbulent week for major stock averages. JPMorgan outlined a number of scenarios for CPI results and how this might influence stock performance, acknowledging the greater likelihood of a ‘hawkish print’ scenario leading to losses in S&P 500.

Finally, a number of important earnings reports were issued on Friday, with particular focus on the results of McDonald’s, Burger King parent company Restaurant Brands, and the fast-food industry in general. Despite this, the market remains preoccupied with rising tariffs and tech IPOs caused significant disruption in the tech capital markets.

Bill Ackman’s Pershing Square has acquired a substantial stake in Meta, representing 10% of Pershing’s capital as of the end of 2025. Ackman cited Meta’s undervalued share price and artificial intelligence potential as reasons for the investment. Meta shares have declined by 16% over the past year due to concerns about its high spending on AI.

David Einhorn of Greenlight Capital predicts that the Federal Reserve will make more interest rate cuts this year than anticipated, strengthening his confidence in gold. Despite expectations of rate cuts diminishing after positive January job reports, Einhorn believes that Kevin Warsh, Trump’s pick for Fed chair, will argue for more cuts.

Significant stock movements today include Acadia Healthcare, which rose 10% following Einhorn’s announcement that he has been purchasing the stock. Vertiv experienced a 20% surge due to upbeat guidance for 2026. However, Unity Software shares fell nearly 30% after predicting disappointing first-quarter revenue, and Moderna’s share price also fell by 6%.

January’s job report exceeded expectations with both job creation and the unemployment rate, although some economists believe the figures may be exaggerated.

Ford reported a larger than expected earnings shortfall in its fourth quarter, attributing the 32% miss to around $900 million in unexpected tariff costs and a fire at an aluminium plant. The company expects 2026 to be a year of recovery.

Shares of Moderna dropped by more than 10% following the FDA’s refusal to review its application for an experimental flu shot. The decision is believed to indicate that vaccine regulations are becoming stricter under the Trump administration.

Stock futures have risen following the January nonfarm payrolls report and the S&P 500’s threat to the sector. Notably, the Dow Jones Industrial Average exceeded 50,000 for the first time last week and has continued to break records since.