Market history

Nvidia’s $589 bln DeepSeek rout is largest in market history, Trump says DeepSeek ‘should be a wake-up call’, Tom Lee: “this is the worst market overreaction since the pandemic”, consumer sentiment declines for first time in six months, and Senate confirms pro-crypto Scott Bessent as US Treasury Secretary...

Good morning.

The Fast Five Nvidia’s $589 bln DeepSeek rout is largest in market history, Trump says DeepSeek ‘should be a wake-up call’, Tom Lee: “this is the worst market overreaction since the pandemic”, consumer sentiment declines for first time in six months, and Senate confirms pro-crypto Scott Bessent as US Treasury Secretary…

Calendar: (all times ET) - Full Calendar

  • Today:
    Durable-goods orders, 8:30A
    Consumer confidence, 10:00A

  • Tomorrow:
    FOMC interest-rate decision, 2:00P
    Fed Chair Powell press conference 2:30P

Your 5-minute briefing for Tuesday, January 28:

BEFORE THE OPEN

As of market close 1/27/2025.

Pre-Market:

US Investor % Bullish Sentiment:
↑ 43.43% for Week of January 23 2025

Previous week: 25.43%. Updates every Friday.

Market Wrap:

  • S&P and Nasdaq sank on AI bubble fears after China’s DeepSeek unveiled breakthrough model.

  • Nvidia -17%, Broadcom -17.4%, AMD -6.4%, Microsoft -2.1%, Palantir -4.4%.

  • AI-linked energy stocks hit hard: Constellation -21%, Vistra -28%.

  • Defensive stocks gained as investors rotated into staples, health care, real estate.

  • Fed meets tomorrow; Meta, Microsoft, Tesla, and Apple report this week.

EARNINGS

Here’s what we’re watching this week:

  • Today: Boeing (BA), General Motors (GM), JetBlue (JBLU), Starbucks (SBUX)

  • Wednesday: UBS (UBS), Tesla (TSLA)

    • Meta (META) - earnings of $6.73 per share (+26.3% YoY) on $47B revenue (+17% YoY)

  • Thursday: Blackstone (BX), Comcast (CMCSA), Intel (INTC), Southwest Air (LUV), UPS (UPS)

    • Apple (AAPL) - earnings of $2.43 per share (+11.5% YoY) on $124.8B revenue (+4.3% YoY)

HEADLINES

DeepSeek’s AI chatbot fueled a selloff in Nvidia, tech stocks. Nvidia is responsible for 8 of 10 largest market value drops.

DeepSeek's sudden popularity and praise for it shook tech markets in the United States on Monday.

  • Tom Lee says this is the worst market overreaction since the 2020 pandemic outbreak (more)

    • World’s richest lose $108 billion after DeepSeek selloff (more)

    • AI-themed ETFs plunge in wake of DeepSeek news (more)

    • Power stocks plunge as energy needs called into question due to China’s AI (more)

  • Senate confirms pro-crypto Scott Bessent as US Treasury Secretary (more)

  • New home sales exceed expectations; rising supply curbs house price growth (more)

  • US consumer sentiment declines for first time in six months (more)

  • Working Americans turn to food banks as Fed inflation battle drags on (more)

  • Wall Street asks SEC to extend timeline for US Treasury market overhaul (more)

  • Dollar climbs as tariff threats back on the agenda (more)

  • Gold retreats as investors liquidate positions in equities sell-off (more)

  • Pfizer proxy fight averted as Starboard stands down, for now (more)

  • Estée Lauder reviews brands amid management change (more)

Buy this Stock During the Nasdaq Pullback

After kicking off its best year since 2009, the Nasdaq has begun to tumble – with Wall Street darling NVDA leading the fall.

Now, millions of investors are left to wonder: Is this the beginning of the end of the AI bull market?

Even as most tech stocks have faltered... including NVDA, TSLA, AAPL, and MSFT...

Likely due to the fact that it recently inked a major deal with Meta Platforms – which could send $250 million in revenue into this company's coffers.

He returned to Wall Street to issue a massive AI prediction – including exactly what AI stocks to buy, and avoid, for the highest potential gains in 2025.

DEALFLOW

M+A | Investments

  • Utility firm Eversource to sell water supply unit in $2.4 billion deal (more)

  • LVMH sells Stella McCartney stake back to founder after downturn (more)

  • Deloitte acquired the assets of SimplrOps, a boutique enterprise SaaS tech company that automates Workday, SAP and Oracle operations (more)

  • Emerson buys rest of AspenTech at $17 billion valuation (more)

  • Raintree Systems, a platform for enterprise therapy provider organizations, acquired Yoomi Health, a leader in AI technologies for rehab therapy (more)

  • Fenix24, a cyber disaster recovery firm, acquired vArmour, a provider of Application Relationship Management software (more)

  • Comply365, a global provider of operational content for the aviation, rail, defense and space industries, acquired Aviation Safety & Quality Solutions S.à r.l, a provider of safety and compliance management systems (more)

  • Elucent Medical, a medical technology company, received $30M in Growth financing from Trinity Capital (more)

  • Niobrara Capital, a private equity firm, received a strategic investment from Wafra's Capital Constellation (more)

  • iDrive Logistics, a provider of shipping and fulfillment solutions for e-commerce businesses, received growth financing from Decathlon Capital (more)

VC

  • Indigo, an AI-powered platform for home negotiations, raised $8M in Seed funding (more)

  • MarkeTeam.ai, a developer of advanced AI technology for the marketing industry, raised $3M in Seed funding (more)

  • Recycle Track Systems, a waste management company, raised an undisclosed amount in funding (more)

  • Satisfi Labs, a conversational experience platform designed to transform customer engagement, raised an undisclosed amount in Growth funding (more)

CRYPTO

  • CFTC acting chair announces roundtables on crypto market structure (more)

  • Bitcoin drops to 11-day low amid tech selloff (more)

  • Scam tokens surge as DeepSeek AI goes viral (more)

BULLISH BITES

🤖 DeepSeek resets the board.

🫧 The anatomy of a bubble bursting.

☎️ When corporate America called Biden, nobody picked up the phone.

💍 Inside the troubled House of Tiffany.

DAILY SHARES

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