The markets kicked off midweek with mixed results, while inflation data and earnings reports fueled significant activity across key sectors. Here’s what you need to know:
- S&P 500: Up 0.1%, eking out a small gain.
- NASDAQ: Down 0.2%, continuing its slide.
- Bitcoin: Surged near $100,000, rebounding from a tough start to the week.
- Inflation in December was 2.9%, meeting expectations, while Core CPI came in at 3.2%—better than the forecasted 3.3%.
- Markets reacted positively, with pre-market futures showing strength.
It was a strong day for the financial sector:
- JP Morgan: Profits jumped 50% in Q4, with gains across all banking divisions.
- Goldman Sachs: Reported its best-ever equity trading year, with revenue up 32% YoY.
- Wells Fargo: Profits climbed 47%, supported by rising investment banking fees.
- Citibank: Surpassed expectations with a profitable quarter.
- Meta: Announced plans to cut 5% of its workforce (~3,000 employees), focusing on cost control amid an "intense year."
- Microsoft: Initiated a hiring freeze in its US consulting division and announced layoffs, reflecting a growing shift in Big Tech’s operating approach.
- Renewed interest in quantum computing drove big gains for key players:Rigetti Computing: Up 15% today after a 40% surge yesterday.D-Wave Quantum: Gained 25%, following a 20% increase Tuesday.
- Catalysts included NVIDIA’s Quantum Day and Microsoft’s call for businesses to become “quantum-ready” by 2025.
- Tech Transition: The days of cushy, low-accountability tech jobs may be over, as cost-cutting and performance metrics take precedence in major companies.
- Red #3 Ban: The FDA has announced a ban on Red #3, a food dye linked to cancer, requiring manufacturers to reformulate products by 2027.
As earnings season picks up, there’s no shortage of news impacting markets. Which trend are you watching most closely this week? Drop your thoughts below! ??
