Markets
Equities rebound from a DeepSeek-induced selloff the day prior. Yesterday shares of $NVDA fell -17%, dropping it to the third place in market cap. $IXIC fell -3%. Steve Cohen from Point72 shared that Chinese advancement in AI would accelerate development. Minor uptick in yields prior to Jan 29 FOMC. Market anticipates 99.5% chance of rates being kept steady.
Headline Digest
• ASML Orders Beat Estimates as Concern Over DeepSeek’s AI Grows
$7.4b order bookings in 24Q4 compared to estimate of $3.5b
• Nvidia’s $589 Billion DeepSeek Rout Is Largest in Market History
On Monday Nvidia praised DeepSeek’s performance, while adding that inference still requires significant amounts of Nvidia GPUs
• Microsoft Probing If DeepSeek-Linked Group Improperly Obtained OpenAI Data
David Sacks, Trump’s AI and Crypto Czar, said there is substantial evidence of distillation whereby an AI model uses the outputs of another model to inherit similar capabilities.
• Trump’s Tariffs Hit US Growth Before, and Threaten to Again
Analysis of tariffs levied in the first term of Trump, showed reduction in real income and less US factory jobs.
• India Investors Eye Budget Relief After $600 Billion Stock Rout
India investors anticipate federal spending to support infrastructure, manufacturing, rural development and defense. Since the high-point on September 26th, India equity indices fell 12% in the following four months.
• Bets on Bigger Treasuries Rally Are Booming Before Fed Decision
Bond traders anticipate signals for a March rate-cut in tomorrow’s comment.
• Apple and SpaceX Link Up to Support Starlink Satellite Network on iPhones
This software update will provide an alternative to Apple’s in-house satellite-comm service. T-Mobile previously only mentioned Samsung smartphones to be connected to Musk’s satellites.
• Tesla investors want Elon Musk to answer questions about ‘salute,’ role in Trump White House
Tesla to report 24Q4 earnings on Wednesday. 100+ inquires on Musk’s involvement in politics filled Tesla’s questionnaire forum, including time allocation.
• Trump administration offering buyouts to nearly all federal workers
Those who don’t like the full return-to-office, can take the “deferred resignation” which includes a payout equal to 8 months pay. Emailing “Resign” is all it would take to accept the buyout.
