Anti-Clickbait News Summaries for February 17, 2025
Elon Musk's $97 billion offer for OpenAI is rejected as startup insists it is not for sale
Hi! It’s Jack and The Stock Insider team with the best, non-partisan daily newsletter related to politics, the US stock market, and business. 😇
The Podcast:
The Markets:
Futures Highlights
Today in the futures market, energy and metals showed modest movements. While Crude Oil inched higher, Natural Gas slid sharply, and equity-linked futures posted small gains overall.
⚪ Crude Oil: 70.76 ( +0.02 | +0.03% )
🔴 Natural Gas: 3.6340 ( -0.0910 | -2.44% )
🟢 Gold: 2909.30 ( +8.60 | +0.30% )
🟢 Dow: 44728.00 ( +93.00 | +0.21% )
🟢 S&P 500: 6145.25 ( +13.25 | +0.22% )
🟢 Nasdaq 100: 22252.50 ( +56.25 | +0.25% )
🟢 Russell 2000: 2290.30 ( +4.90 | +0.21% )
Forex & Bonds Highlights
Foreign exchange pairs and treasuries provided mixed signals today. The USD weakened slightly against the euro and yen while treasury yields fell, reflecting a cautious investor mood.
🔴 EUR/USD: 1.0470 ( -0.0017 | -0.16% )
🔴 USD/JPY: 151.49 ( -0.79 | -0.52% )
🟢 GBP/USD: 1.2598 ( +0.0013 | +0.10% )
🟢 BTC/USD: 96260.70 ( +273.60 | +0.29% )
🔴 5-Year Treasury: 4.324 ( -0.062 | -1.41% )
🔴 10-Year Treasury: 4.472 ( -0.053 | -1.17% )
🔴 30-Year Treasury: 4.693 ( -0.039 | -0.82% )
Major News Highlights
Stocks delivered a mixed performance today, with some posting remarkable gains while others fell back. The biggest rally was seen in WRD with an astounding surge, whereas TWLO experienced the steepest decline.
🟢 WRD: +83.46%
🟢 DKNG: +15.16%
🟢 ABNB: +14.45%
🟢 MRNA: +3.35%
🟢 NVDA: +2.63%
🟢 GME: +2.51%
🟢 AAPL: +1.27%
🟢 META: +1.11%
🟢 TSM: +1.03%
⚪ TSLA: -0.03%
🔴 AMZN: -0.73%
🔴 PANW: -0.92%
🔴 WMT: -0.96%
🔴 INTC: -2.20%
🔴 COIN: -7.98%
🔴 TWLO: -15.01%
You can find my most significant newsletter (over 500k active subscribers) at:
Beyond the Paywall:
Events Affecting The Markets Today & Beyond
Most Impactful News Summaries
Today:
Below is a deep‐dive into what’s happening in the U.S. stock market today—Monday, February 17, 2025—beyond mere price changes.
1. Market Holiday: Presidents Day
Today is Presidents Day (Washington’s Birthday), a federal holiday that mandates the closure of U.S. financial markets. Consequently:
US Exchanges Closed: The NYSE, Nasdaq, bond markets, and over‐the‐counter trading venues will not operate today.
Government & Bank Closures: Federal agencies (including the Federal Reserve) and most physical bank branches are closed (though digital banking remains available).
International Contrast: Many global markets (e.g., London, Tokyo, Hong Kong) remain open, which may influence sentiment when U.S. trading resumes on Tuesday.
2. Earnings Announcements on a Non-Trading Day
Even though trading is halted, several U.S. companies have chosen today to release their quarterly earnings results. This can influence investor sentiment and set expectations for the upcoming trading session. Notable releases scheduled for today include:
Tennant (NYSE:TNC): Expected to report quarterly earnings with forecast EPS around $1.37 on approximately $323.27 million in revenue.
UFP Industries (NASDAQ:UFPI), Noble Corp (NYSE:NE), Otter Tail (NASDAQ:OTTR), Transocean (NYSE:RIG), BHP Group (NYSE:BHP), Huntsman (NYSE:HUN), and JELD-WEN (NYSE:JELD): All are slated to announce their earnings, with analysts providing forecasts on per‐share earnings and revenue figures.
Even though the market is closed, these announcements (often released via press releases or after-hours channels) are crucial. They help set the tone and influence investor expectations for the market open on Tuesday.
3. No New Policy or Economic Data Releases
Because Presidents Day is a federal holiday, most government agencies are closed. As a result:
No Official Economic Indicators: Key data releases (such as CPI, PPI, housing starts, or nonfarm payrolls) are not scheduled for today.
Policy Announcements Postponed: Important policy updates—like the FOMC meeting minutes—are set for later in the week (e.g., Wednesday, February 19).
This absence means that today’s news flow is lighter on macroeconomic and policy fronts, with investor attention instead shifting to the corporate earnings announced today.
4. Indirect Influences and Market Sentiment
While U.S. trading is paused, investors may still absorb global economic and political news. For example:
International Developments: News from open markets abroad (including European and Asian exchanges) can subtly influence U.S. investor sentiment ahead of the next trading session.
After-Hours Earnings News: Even on a holiday, companies’ earnings reports can generate buzz via media and analyst commentary, affecting how investors position themselves when markets reopen.
Most Impactful News Summaries:
Jack’s note: I recently feel like I’m running an AI newsletter…
About Donald Trump, Elon Musk, and China…
I’m really trying to be non-partisan.
These articles are simply the most influential.
😇
Meta eyes smart glasses as next major innovation beyond agentic AI
Meta Platforms is focusing on the development of agentic AI, which allows software to perform tasks independently based on human direction. CEO Mark Zuckerberg predicts that 2025 will see significant advancements in this technology, potentially transforming the market.
Beyond agentic AI, Zuckerberg believes smart glasses could be the next major innovation. He envisions these glasses as ideal AI devices that can see and hear like their users, enhancing their functionality and appeal.
Meta is actively pursuing the smart glasses market, with successful products like Ray-Ban Meta AI glasses and promising prototypes like Orion. This strategy may position Meta as a leader in the emerging smart glasses sector, especially as competitors like Google and Apple have stepped back.
Source: https://www.fool.com/investing/2025/02/17/the-next-big-thing-beyond-agentic-ai-how-smart-gla/
Elon Musk's $97 billion offer for OpenAI is rejected as startup insists it is not for sale
Elon Musk's $97 billion offer to buy OpenAI was rejected. The AI startup stated it is "not for sale," highlighting that some things cannot be purchased, even with significant funds.
In January, U.S. retail sales fell more than expected, indicating consumers were less willing to spend. This decline may impact the country's economic growth, which heavily relies on consumer spending.
Meanwhile, Intel, Broadcom, and TSMC are in early talks about a potential deal that could involve breaking up Intel's business. The data center market continues to grow, with new technologies emerging, though immediate impacts are not expected.
Source: https://www.cnbc.com/2025/02/17/cnbc-daily-open-elon-musks-money-cant-buy-openai.html
China closes technological gap with US in new cold war, experts say at Munich conference
At the Munich Security Conference, experts discussed the growing technological rivalry between China and the US, describing it as a "new cold war." They noted that China is closing the technological gap, prompting the US to increase military tech investments and tighten chip export controls.
Former congressman Mike Gallagher emphasized the urgency of the situation, stating that the US must act to maintain its technological lead, particularly in artificial intelligence and robotics. He expressed concern over China's advancements in these areas.
The US has already implemented strict export controls on advanced chips to curb China's military capabilities. The Pentagon is also developing low-cost autonomous systems to enhance deterrence. Both nations are expected to intensify their competition in technology and military advancements.
Source: https://ca.news.yahoo.com/china-narrowing-gap-us-cold-093000506.html
OpenAI shifts focus from o3 model to unified GPT-5 release
OpenAI will not launch the o3 AI model as a standalone product. Instead, the company will focus on a unified GPT-5 model that integrates o3's capabilities. This decision marks a shift in OpenAI's approach to AI model releases.
OpenAI plans to simplify its offerings with GPT-4.5 and GPT-5, allowing users to access various tools without needing to choose specific models for different tasks. GPT-5 will be available to all ChatGPT users, with tiered access for Pro subscribers.
Before GPT-5, OpenAI will release GPT-4.5, which is expected soon. This will be the last model without a chain-of-thought feature. GPT-4.5 is internally referred to as Orion, previously speculated to be GPT-5.
UK sellers brace for impact from new US import rules on Chinese goods
UK sellers on platforms like eBay and Amazon may face significant losses in US sales due to new import rules under Donald Trump. These rules require all parcels from China to pay import duties, impacting both small sellers and larger retailers like Asos and Boohoo.
The changes, which began in February, aim to protect US retailers from competition but have been paused due to customs processing issues. Once implemented, they could increase costs for UK businesses and slow down delivery times, making them less competitive.
Previously, parcels valued under $800 were exempt from import taxes. The new rules could affect a wide range of products, not just those made in China, and may lead to higher prices for US consumers.
Tech leaders see DeepSeek as a sign of rising China-U.S. AI competition
At the AI Action Summit in France, tech leaders discussed the emergence of China's DeepSeek as a significant player in the AI field. They noted that DeepSeek's low-cost AI model challenges previous assumptions about China's position in AI development.
Despite DeepSeek's advancements, executives believe the threat to companies like OpenAI remains limited. Concerns were raised about DeepSeek's claims regarding costs and the potential use of data from larger U.S. AI systems for training.
Overall, while DeepSeek's progress indicates increased competition between the U.S. and China in AI, many experts maintain that the current market dynamics still favor larger AI models from established companies.
Source: https://www.cnbc.com/2025/02/17/deepseek-ramps-up-china-us-competition-but-wont-hurt-openai.html
Chinese scientists develop new diamond 40% harder than natural version
Chinese scientists have developed a new type of artificial diamond, called hexagonal diamond (HD), which is 40% harder than natural diamonds. This advancement could impact industries that use diamonds for machining and drilling.
The researchers created nearly pure HD by heating highly compressed graphite. This method produced a millimeter-sized block with a unique structure, showing high thermal stability and hardness.
Previous attempts to synthesize HD had limited success. The new findings provide a clearer path for producing this material, which may also be used in jewelry, such as engagement rings.
Source: https://ca.news.yahoo.com/chinese-scientists-super-diamond-40-071319931.html
Trump's tariffs on Chinese imports and Taiwanese semiconductors may raise tech prices in 2025
In 2025, U.S. President Donald Trump has maintained a 10% tariff on Chinese imports and is considering new tariffs on Taiwan-based semiconductors. This could lead to higher prices for various tech products, especially budget devices.
Trump's tariffs on steel and aluminum are stricter, aiming to protect U.S. industries. However, experts suggest these tariffs will have minimal impact on tech prices, as most products are assembled overseas.
The proposed tariffs on Taiwanese chips could significantly raise prices for components, potentially increasing costs by up to 59%. This may lead to noticeable price hikes for laptops, smartphones, and gaming consoles.
Meta's AI model reconstructs sentences from brain activity with 80% accuracy
Meta has developed an AI model that can reconstruct sentences from brain activity with 80% accuracy. This breakthrough, achieved in collaboration with the Basque Center on Cognition, Brain, and Language, uses non-invasive methods like magnetoencephalography (MEG) and electroencephalography (EEG).
The AI was trained on brain recordings from 35 participants typing sentences. It shows improved performance over existing brain-computer interfaces, which often require invasive procedures. However, the technology has only been tested on healthy individuals, and its effectiveness for those with brain injuries is still unknown.
In addition to translating thoughts into text, Meta's AI helps researchers understand how the brain converts ideas into language. It analyzes brain activity at a millisecond level, revealing a 'dynamic neural code' that connects different stages of language processing.
Food prices rise sharply in the U.S. as egg shortage and economic factors strain consumers
Food prices in the U.S. have risen significantly, with a 30% increase over the past five years. The egg shortage, driven by a virus affecting hens, has led to surcharges at restaurants like Waffle House.
Economic factors, including supply chain disruptions from the Ukraine conflict and climate issues in West Africa, are contributing to rising costs. Tariffs proposed by President Trump on imports from Mexico and Canada have added to consumer concerns.
Despite efforts by some businesses to keep prices down, profit margins have increased, leading to accusations of price gouging. Consumer sentiment has dropped, reflecting fears of ongoing inflation and economic instability.
China emphasizes stable yuan as vital for global economy facing strong dollar
China's central bank governor stated that a stable yuan is crucial for global financial stability, contrasting it with the rising US dollar. The yuan has remained steady, fluctuating between 7 and 7.3 against the dollar over the past year.
The People's Bank of China has focused on defending the yuan from depreciation pressures, implementing macro-prudential policies and adjusting capital controls. This approach differs from the 2015 devaluation, which led to significant currency weakness.
In the US, the strong-dollar policy remains unchanged under President Trump, despite concerns about its impact on American exports. The strong dollar is affecting emerging markets and complicating global economic conditions.
Source: https://ca.finance.yahoo.com/news/china-says-stable-yuan-key-025854482.html
Meta and Google to invest $320 billion in AI data centers boosting Broadcom prospects
Meta Platforms and Google plan to spend a combined $320 billion in 2025, primarily on artificial intelligence data centers. This marks a significant increase in capital expenditures compared to previous years.
Broadcom is expected to benefit from this spending. The company provides essential chips for network switches and custom AI chips used by both Meta and Google.
Meta is expanding its use of its custom AI chip, the MTIA, while Google reports strong demand for its new Tensor Processing Units. Both companies aim to reduce reliance on Nvidia's chips in their data centers.
Source: https://finance.yahoo.com/news/meta-platforms-google-just-shared-020000239.html
House budget plan could increase national debt by $25 trillion over next decade
House leaders are working on a budget plan that could add $25 trillion to the national debt over the next decade. This is largely due to extending the 2017 Tax Cuts and Jobs Act without sufficient spending cuts to offset the revenue loss.
The proposed budget includes a $4 trillion increase in the debt ceiling and allocates $4.5 trillion for tax cuts. However, it only seeks to find $1.5 trillion in spending cuts, leaving a significant deficit.
Critics, including the Committee for a Responsible Federal Budget, warn that the plan allows for nearly $4 trillion in new borrowing. They emphasize that the U.S. faces a serious fiscal challenge that needs immediate attention from lawmakers.
Trump launches investigation into U.S. national debt for potential fraud
President Donald Trump announced an investigation into the U.S. national debt, suggesting some Treasury payments may be fraudulent. He stated that his administration is reviewing debt records, which could indicate the actual debt is lower than previously thought.
Trump's comments raised concerns among financial experts, as Treasury securities are typically seen as safe investments. The investigation comes amid discussions about the potential impact of proposed tax cuts, which could add trillions to the national debt.
To address waste and fraud, Trump has appointed Elon Musk to lead a new Department of Government Efficiency. However, a federal judge recently restricted Musk's team from accessing certain government financial data due to privacy concerns.
Source: https://finance.yahoo.com/news/trump-investigates-u-debt-fraud-200017541.html
Unemployment claims rise sharply in Washington, D.C., as Trump initiates federal layoffs
Unemployment claims in Washington, D.C., have surged as President Trump initiates layoffs of federal workers. Nearly 4,000 claims were filed since the start of the year, marking a 55% increase compared to the previous six weeks.
The week ending February 8 saw 1,780 claims, a 36% rise from the prior week. This spike contrasts with the national unemployment rate, which remains stable at around 4%.
Trump's administration is targeting a reduction in the federal workforce, with buyout offers accepted by about 75,000 employees. The impact on the overall job market is expected to be limited, though some displaced workers may find opportunities in other sectors.
Source: https://www.nbcnews.com/news/us-news/unemployment-spikes-washington-dc-trump-musk-rcna192398
Skokie hosts quantum computing conference to showcase technology park potential
Skokie, Illinois, recently co-hosted a quantum computing conference at the Illinois Science + Technology Park, attracting around 300 experts and executives from major tech companies. The event aimed to showcase the park's potential for future quantum computing facilities.
The conference highlighted the park's infrastructure, which is suitable for quantum computing. Experts believe that Chicago and its suburbs could become leaders in this technology, supported by local universities and a diverse economy.
PsiQuantum plans to build a large quantum computer in Chicago, emphasizing the technology's accuracy in data processing. While consumer interaction with quantum computing may be limited for now, its economic benefits are expected to grow over time.
Trump threatens tariffs on semiconductors as CHIPS Act aims to boost U.S. production
President Donald Trump has threatened to impose tariffs on semiconductors and alter federal contracts with chipmakers. This move aims to boost U.S. chip production but may hinder the tech industry’s growth, particularly in artificial intelligence.
The CHIPS and Science Act, which supports domestic chip manufacturing, has already provided $30 billion for projects that could create 115,000 jobs. Trump’s stance on tariffs and the CHIPS Act raises concerns about rising costs for consumers and potential setbacks for the U.S. AI sector.
Experts warn that tariffs could increase prices for various consumer goods that rely on chips, affecting everything from smartphones to cars. The uncertainty surrounding U.S. chip policy may deter future investments in domestic manufacturing.
Source: https://apnews.com/article/trump-semiconductors-chips-act-3592f1ed8b8cd4f2145cfa8a4985046c
Informative. Well written