Markets
Broad gains in the market. Especially $Gold. Sooner and broader tariffs are fueling the commodity past $2,900 per ounce. As per NY Fed survey of expected inflation, 1Y, 3Y stayed still at 3%, while 5Y rose 0.3%p, also reaching 3%. As inflation measures continue to disappoint, Morgan Stanley reduced the outlook of number of rate cuts to one 25bps cut. Tariffs on steel imports boosted relevant stocks like $NUE. AI continued to fuel the market up. $TSLA continues to descend from the Dec 17 highs. ex-US equities continue their slow steady winning streak.
Headlines
• Elon Musk investor group submits $97.4 billion bid for OpenAI – WSJ
OpenAI is potentially worth $300b as per SoftBank deal.
• Wall Street ends higher on AI strength; steelmakers climb on Trump tariff threat
$NVDA +2.84%, $AVGO +4.49%, $PLTR +5.27%, $TSLA -3.04%
• US containerized imports hit record high in January
Chinese imports grew 10% YoY in January. Trump imposed a 10% tariff on Chinese goods starting Feb 4.
• US judge keeps his block on Trump federal buyout plan in place for now
65k federal workers sign up for Trump’s buyout program despite unions urge not to. US District Judge George O’Toole in Boston halted the implementation for now.
• Coffee in New York jumps 6% to new record amid ‘panic buying’
Hot and dry weather forecast and low coffee inventory in Brazil causes further price hikes
• Bond traders waver as Trump questions US government debt figures
• Gold prices hit record high as Trump tariffs fuel haven demand
$2900/ounce
• Dollar gains, others slip on tariff threats
• Trump’s sooner, broader tariffs risk upside inflation, curbing rate-cut hopes
Morgan Stanley expects one rate cut of 25bp in 2025.
• Trump, Musk actions put America at risk of ‘a form of default,’ former Treasury chiefs warn
• Musk suggests closer scrutiny of Fed as Powell prepares to face Congress
“All aspects of the government must be fully transparent and accountable to the people. No exceptions, including, if not especially, the Federal Reserve.”
• Meta Starts Eliminating Jobs in Shift to Find AI Talent
Meta is letting go around 3,600 low performers with 16weeks of severance.
Disney’s “Reimagine Tomorrow” and “The Disney Look” initiatives were scrapped in the latest 10-K filing.
• T-Mobile launches beta for Starlink connection. Stock surges.
Super Bowl ad featured the $TMUS – Starlink partnership
