Why are tech CEOs jumping on the Trump bandwagon?

• Markets rally as Trump holds back on immediate tariffs - S&P 500 +2.75%, NASDAQ +2.84%, USD retreats 1%

• Global business leaders from Amazon, Meta, Apple, Tesla and more attend inauguration, signaling potential business-friendly stance
• Sector divergence emerges - Energy leads (XLE +8.42%) on production pledge, while Japan tech struggles on semiconductor concerns

Hi traders,

Sometimes the most important market signals come from who's in the room. President Trump's inauguration this Monday was a convergence of policy and business power that sent immediate ripples through global markets. From tech CEOs to media moguls, the day offered a clear glimpse of what's ahead for investors.

When CEOs representing over $12 trillion in market value - including tech leaders like Bezos, Zuckerberg, Cook, and Musk, alongside influential figures like Bernard Arnault and Rupert Murdoch - gather in one place, markets take notice. The heavyweight business presence at the inauguration signals potential for improved business-government relations, which could explain some of this week's market optimism.

Trump's pledge to boost oil production has also bolstered the energy sector's strong performance (XLE up 8.42% YTD). This policy stance, combined with existing sanctions on Russian energy trade, suggests we could see continued momentum in energy stocks.

The broader market response has been positive, with the S&P 500 climbing 2.75% and the NASDAQ advancing 2.84%. These gains reflect not just Trump's trade policy restraint, but also his ambitious agenda including American expansion plans - notably the Mars mission commitment, which could have implications for aerospace and technology sectors.

In Asia, markets are showing mixed reactions. The Hang Seng Index rose 3.76%, supported by both Trump's trade stance and China's stronger-than-expected Q4 GDP growth of 5.4%. Japanese markets, however, remain under pressure (Nikkei -3.66%, TOPIX -0.26%) as concerns persist about U.S. semiconductor restrictions.

The financial sector continues to show strength, with XLF up 4.19%. Goldman Sachs exemplifies this robust health, posting Q4 net income of $4.1 billion - more than double its 2023 figure. The anticipated executive orders and policy shifts could further reshape the financial landscape.

Looking ahead, traders should watch for:

1. Energy sector opportunities as new production policies unfold
2. Tech sector reactions to potential regulatory changes
3. Infrastructure plays related to border security initiatives

Stay focused, stay strategic and happy investing!

Isaac Lim

Chief Market Strategist

Moomoo Singapore

P.S. Want more real-time insights? Follow the Trader's Edge account on Moomoo for daily analysis from me and my team.

Chart of the Day

A stark sector divide is emerging in 2025. Energy (XLE +8.42%) and Basic Materials (XLB +6.15%) are surging ahead while defensive sectors like Real Estate and Consumer Staples struggle in negative territory. This rotation into cyclicals suggests investors are betting on Trump's industrial and production-focused agenda rather than playing it safe.

Global Markets at a Glance

???? U.S. Markets:

• S&P 500 and NASDAQ futures gained 2.75% and 2.84%
• Energy sector (XLE) leads with +8.42% YTD gain
• Goldman Sachs Q4 net income doubles to $4.1B

???? Japanese Markets:

• Nikkei (-3.66%) and TOPIX (-0.26%) under pressure
• Tech selloff intensifies on semiconductor concerns
• BOJ rate decision looms after hawkish signals

???? Chinese Markets:

• Hang Seng adds 1.7%, fourth straight week of gains
• PBoC holds rates steady: 1Y at 3.1%, 5Y at 3.6%
• Consumer stocks lead gains with Meituan up 9.64%

???? Singapore Markets:

• STI inches up 0.50% on strong export data
• Seatrium leads gains (+3.18%)
• Bank stocks mixed with DBS down 0.50%

5 Stocks to Watch

This week's watchlist captures an intriguing sector narrative, from energy names riding policy tailwinds to consumer discretionary plays positioning for recovery. Leading the pack are U.S. utility stocks Vistra Corp and Dominion Energy showing bullish momentum, while Carnival Corporation signals potential upside in travel demand. Meanwhile, Xiaomi's technical breakout suggests strength in Asian tech, contrasting with Disney's bearish setup. Want to understand what's driving these picks? Dive deeper into our analysis:

https://www.moomoo.com/community/feed/5-stocks-we-are-watching-this-week-113858385674246?global_content=%7B%22promote_id%22%3A13643%2C%22sub_promote_id%22%3A67%7D&futusource=nnq_personal_guest&feed_source=12

Prepared by:

Moomoo Singapore

Isaac Lim CMT, CFTe Chief Market Strategist

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