| | Good morning, | Last week was a mixed bag, to put it mildly. We kicked off with the S&P 500 notching a fresh record high of 6,147. Things were looking pretty rosy as dip-buyers jumped in at every opportunity. But the party didn’t last. Eventually, profit-taking kicked in, and some started to worry about high valuations. All it takes is a little whisper of a potential top to send shivers down the market’s spine. | The S&P 500 ended the week down 1.7% from the previous Friday. The equal-weighted S&P 500 held up a bit better, declining by only 0.7%. Small caps got hammered, with the Russell 2000 plummeting 3.7%. Mega caps weren’t immune either, as the Vanguard Mega Cap Growth ETF (MGK) dropped 2.7%.
| The sectors that house these mega caps, like consumer discretionary (down 4.3%) and communication services (down 3.7%), took the biggest hits. On the flip side, defensive sectors like utilities (up 1.4%), consumer staples (up 0.9%), and health care (up 1.1%) did surprisingly well. When things get shaky, people flock to the essentials, right. | | Dow Jones Industrial Average: Down 2.5% for the week, but still up 2.1% YTD. S&P 500: Down 1.7% for the week, up 2.2% YTD. Nasdaq Composite: Down 2.5% for the week, up 1.1% YTD. S&P Midcap 400: Down 3.0% for the week, down 0.6% YTD. Russell 2000: Down 3.7% for the week, down 1.6% YTD.
| Have a great week! | Irving Wilkinson, Editor | AlphaBetaStock.com | | US Highlights | Fed officials are now hinting at a pause on rate cuts because of these tariff worries. Meeting minutes revealed growing concerns that Trump’s trade policies could fuel inflation. Currently, markets are only pricing in two cuts this year. Speaking of Trump, he’s pushing the Pentagon to plan deep budget cuts, aiming for an 8% reduction annually over five years. The exceptions are border security and missile defense. Of course, critics are already warning about the potential risks to military readiness. Home sales took a dive of 4.9% in January, even as prices hit a record high. The median sales price was up 5% year-over-year, reaching $396,900. High mortgage rates and a tight supply are really putting the squeeze on affordability. Here’s an interesting one: TSMC and Broadcom are reportedly considering splitting Intel in two. Broadcom is supposedly eyeing Intel’s chip design unit, while TSMC is interested in its factories. Shares of Intel jumped 16% on this news, even though the talks are supposedly preliminary. Apple unveiled the iPhone 16e, a cheaper, AI-powered model starting at $599. It’s supposed to feature the A18 chip, FaceID-only, and Apple’s first in-house modem, bringing advanced AI capabilities to a more budget-friendly device. The FDA declared that the Wegovy and Ozempic shortages are over, ending a two-year supply crunch. As a result, compounding pharmacies have to stop producing unbranded versions, causing shares of HIMS to plunge 25%. Nikola filed for Chapter 11 bankruptcy protection after failing to secure new funding or a buyer. This company, once valued at $30 billion, has fallen from grace amid scandals, recalls, and dwindling cash reserves. It’s a tough reminder that not every hyped-up company makes it.
| | Global Highlights | The Eurozone is stagnating, as Germany’s gains are offset by France’s slump. The PMI remains stuck at 50.2, with trade tensions and high costs adding pressure ahead of the ECB’s next meeting. Australia’s central bank cut rates for the first time in four years, lowering its benchmark to 4.10% as inflation eases. The RBA is remaining cautious, signaling a gradual approach amidst ongoing economic uncertainties. Trump called Zelensky a “dictator” as the Ukraine feud escalates, accusing him of misusing U.S. aid. Zelensky fired back, calling Trump’s claims Russian disinformation. Tensions are definitely rising over peace talks. Japan’s GDP beat forecasts on strong exports, growing 0.7% in Q4. However, weak domestic demand remains a concern, with full-year growth slowing sharply to 0.1% from 1.5% in 2023. China’s Xi is urging private businesses to “show their talents” as Beijing signals stronger support for entrepreneurs. The move aims to boost confidence amid an economic slowdown and global trade tensions. UK inflation surged to 3% in January, surpassing forecasts as food, transport, and school fees drive prices higher. Despite this, the Bank of England is still signaling future rate cuts. Canada’s inflation ticked up to 1.9% in January, driven by rising gas and vehicle prices despite a sales tax holiday. Core inflation remains elevated, dimming hopes for a March rate cut.
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| Commodities & Crypto | Energy | | Oil prices managed to climb this week, which is a bit of a head-scratcher given all the conflicting pressures on supply. On one hand, the Europeans are cracking down on Russia’s ghost fleet. On the other hand, the United States is considering lifting sanctions against Moscow. The market is also watching talks between the major producing powers, including the United States, Russia, and Saudi Arabia. These discussions, focused on the conflict in Ukraine, are also expected to address oil and influence future trade strategies and production levels. | The US is trying to lower energy prices, while OPEC+ and its influential members, like Saudi Arabia and Russia, want to maintain higher prices. OPEC+ might delay its planned production increase in April. However, a major oil pipeline linking the semi-autonomous region of Iraqi Kurdistan to Turkey is set to reopen and resume exports, which complicates things for Iraq, who needs to respect the quotas set by the expanded cartel. Plus, geopolitical tensions aren’t easing, with Ukraine targeting oil infrastructure in Russian territory once again. | | Metals | | Aluminum reached a one-month high, hitting $2727 per ton in London (cash price), after the European Union agreed to gradually ban imports of Russian primary aluminum as part of a new set of sanctions. Copper also rose to $9563. And gold? That barbaric relic continued its rally for an eighth consecutive week, supported by its demand as a safe haven amidst geopolitical uncertainties. Gold traded at $2932 and is approaching the psychological threshold of $3000. | Crypto | | Bitcoin (BTC) is ending three weeks of consecutive decline and is back flirting with the $100,000 mark, up 3% this week. It’s been hovering in this price zone for two months after a huge surge of more than 50% between Trump’s election and the end of last year. | However, on the Bitcoin Spot ETF side, things aren’t so rosy. The total assets of these exchange-traded products in the United States fell by more than $500 million this week. | As for other cryptos, Solana (SOL) continues to plummet. It’s down almost 30% in a month, from $252 to $178, mainly because of the loss of momentum of memecoins on Solana. It’s the preferred blockchain for these ultra-speculative assets, since the collapse of $TRUMP and, more recently, $LIBRA cryptos. There is a positive note for ether (ETH), though, which is up more than 5% and is back close to $3,000. That’s part of a broader downward trend of 23% since December 1. | Calendar | Investors will be keeping an eye on the PCE Price Index for January on Friday. That’s the Fed’s preferred inflation gauge. The second estimate for fourth-quarter gross domestic product in the U.S. is due Thursday, along with durable goods data for last month. | All eyes will be on Nvidia (NVDA) earnings on Wednesday. Analysts at KeyBanc Capital Markets are expecting “strong” results and guidance when the company reports quarterly results next week, despite the GB200 NVL constraints it has faced. | Earnings Spotlight | Monday: ONEOK (OKE), Public Storage (PSA), Trip.com Group (TCOM), Zoom Communications (ZM), and SBA Communications (SBAC). Tuesday: Home Depot, Intuit, Workday, Sempra (SRE), and Keurig Dr Pepper (KDP). Wednesday: Nvidia, Salesforce, Lowe’s (LOW), TJX (TJX), and Stellantis (STLA). Thursday: Vistra (VST), HP (HPQ), Rocket (RKT), Warner Bros. Discovery (WBD), and NetApp (NTAP). Friday: EOG Resources (EOG), Chart Industries (GTLS), and AES (AES).
| That’s your weekly market rundown. I hope this was helpful and remember to keep your wits about you. | | Copyright © 2025 AlphaBetaStock.com All Rights Reserved | AlphaBetaStock.com is a financial news publisher that does not offer any personal financial advice or advocate the sale or purchasing of any investment/security. Please contact us for any errors in stories by clicking here. For more information, please read our full disclaimer. |
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