Anti-Clickbait News Summaries for February 20, 2025
NVidia poised for 23% stock surge as quantum computing gains traction in AI market [Told ya!]
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’s futures market saw modest gains in commodities like crude oil and gold while natural gas and key equity indices edged lower. Overall, the results indicate a mixed performance with energy and precious metals showing slight strength amid declines in broader equity indicators.
🟢 Crude Oil: 72.33 (Change: +0.23 | +0.32%)
🔴 Natural Gas: 4.1370 (Change: -0.1430 | -3.34%)
🟢 Gold: 2961.60 (Change: +25.50 | +0.87%)
🔴 Dow: 44571.00 (Change: -140.00 | -0.31%)
🔴 S&P 500: 6145.00 (Change: -18.00 | -0.29%)
🔴 Nasdaq 100: 22197.50 (Change: -53.00 | -0.24%)
🔴 Russell 2000: 2285.00 (Change: -4.70 | -0.21%)
Forex & Bonds Highlights
The forex market displayed mixed movements with the euro, pound, and Bitcoin inching higher against the dollar, while the Japanese yen slipped. In bonds, shorter-dated treasuries dipped slightly, although longer maturities held almost steady.
Forex:
🟢 EUR/USD: 1.0452 (Change: +0.0029 | +0.28%)
🔴 USD/JPY: 149.77 (Change: -1.69 | -1.11%)
🟢 GBP/USD: 1.2618 (Change: +0.0032 | +0.26%)
🟢 BTC/USD: 97400.00 (Change: +200.10 | +0.21%)
Bonds:
🔴 5-Year Treasury: 4.37 (Change: -0.023 | -0.52%)
🔴 10-Year Treasury: 4.535 (Change: -0.009 | -0.20%)
🟢 30-Year Treasury: 4.765 (Change: +0.003 | +0.06%)
Major News Highlights
In the equity markets, standout performers in the tech and automotive sectors drove the gains, while several companies reported significant losses. The sorted results from biggest winners to biggest losers reveal a wide dispersion in market sentiment.
🟢 TSLA: +1.82%
🟢 MSFT: +1.25%
🟢 GOOGL: +0.82%
🟢 GOOG: +0.72%
🟢 AMD: +0.36%
🟢 WMT: +0.21%
🟢 AAPL: +0.16%
🔴 AMZN: -0.01%
🔴 NVDA: -0.12%
🔴 HAS: -0.18%
🔴 NTES: -0.44%
🔴 BABA: -0.87%
🔴 META: -1.76%
🔴 RIO: -2.21%
🔴 INTC: -6.10%
🔴 PLTR: -10.08%
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Beyond the Paywall:
Events Affecting The Markets Today & Beyond
Most Impactful News Summaries
Today:
1. Corporate Earnings Announcements
Several major companies are reporting their quarterly results today. Notably, Walmart is in the spotlight—its Q4 report revealed adjusted EPS of $0.66 on revenue of about $180.55 billion, with forward guidance coming in below consensus estimates. ()
Other prominent names—including Alibaba along with a host of companies from diverse sectors (as detailed on earnings calendars from Investors Hangout and TipRanks)–are also releasing their results. These earnings announcements are expected to provide critical insights into corporate profitability, revenue trends, and future guidance that will help set the tone for the market’s direction today. (investorshangout.com, tipranks.com)
2. Monetary Policy Communications
Investor attention will also be focused on a series of speeches by Federal Reserve officials:
Patrick Harker (Philadelphia Fed President) is scheduled to speak at 9:30 AM ET.
Michelle Bowman (Fed Governor) will follow at 10:20 AM ET.
Later in the day, Christopher Waller is set to speak at 6:00 PM ET.
These remarks are anticipated to shed light on the Fed’s outlook amid ongoing debates over interest rate policy and liquidity conditions, potentially swaying market sentiment. (reuters.com)
3. Key Economic Data Releases
Today’s economic calendar includes several important releases that will offer a snapshot of the U.S. economy:
Unemployment Claims data is coming out, which will help gauge the state of the labor market.
The Philadelphia Fed Manufacturing Index will provide an update on manufacturing conditions.
The Crude Oil Inventories report is also scheduled, a key indicator that could influence energy prices and, by extension, sectors like transportation and industrials.
In addition, the release of the German ifo Business Climate index (a European indicator) is set for today, indirectly affecting U.S. sentiment through its impact on global risk perceptions. (equalsmoney.com)
4. Treasury and Market Liquidity Announcements
There are also scheduled Treasury operations—such as the sale of inflation-protected bonds—that are expected to impact liquidity and investor risk sentiment. Such actions can have both a direct and an indirect influence on market flows and valuations. (reuters.com)
5. Geopolitical and Policy Backdrop
While not new to today, the broader context remains one of evolving trade tensions and tariff-related policy signals from the Trump administration. These factors continue to weigh on investor sentiment and set the backdrop against which today’s earnings and data releases will be interpreted. (reuters.com)
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.
😇
New York unveils plan to advance nuclear reactor development
New York Governor Kathy Hochul announced a Master Plan for advanced nuclear development, guided by a new blueprint from the New York State Energy Research and Development Authority. This plan follows a Request for Information to assess market interest in advanced nuclear technologies.
The blueprint outlines various reactor types, including small and large light-water reactors, molten salt reactors, and fusion energy. New York aims to triple its power generation to meet a projected 50% to 90% increase in electricity demand over the next two decades.
In January, NYSERDA and Constellation Energy sought funding to build advanced reactors at Nine Mile Point Clean Energy Center. This marks a shift from previous plans to close nuclear plants, reflecting a renewed focus on expanding nuclear capacity to support clean energy goals.
Source: https://www.reuters.com/business/energy/new-york-seeks-lead-advanced-reactor-deployment-2025-02-20/
Trump aims to replace IRS with new agency focused on foreign revenue, says commerce secretary
Commerce Secretary Howard Lutnick stated that President Donald Trump aims to abolish the Internal Revenue Service (IRS) and replace it with an External Revenue Service focused on collecting revenue from foreign sources.
The IRS currently collects a significant portion of federal taxes, totaling $823 billion in 2024. Trump has previously announced plans for the new agency to oversee tariffs and duties as part of his trade policy.
Trump's recent executive orders imposed tariffs on imports from Canada, Mexico, and China, leading to threats of retaliation from those countries. The establishment of the External Revenue Service will require Congressional approval.
Source: https://www.newsweek.com/donald-trumps-goal-abolish-irs-howard-lutnick-2033609
Trump tariffs threaten U.S. access to critical technology materials from China
The Trump administration's proposed tariffs on China could make it harder for the U.S. to access essential elements like lithium and rare earth metals. China currently refines over 90% of these materials, crucial for technology and defense.
In February, Trump imposed 10% tariffs on all Chinese imports, adding to existing tariffs. China responded with tariffs on U.S. goods and increased export controls on critical elements, impacting tech companies reliant on these supplies.
The demand for rare earth elements is expected to rise significantly, driven by advancements in technology. The U.S. produces about 12% of the global total, but efforts are underway to secure alternative sources outside of China.
Nvidia poised for 23% stock surge as quantum computing gains traction in AI market
Quantum computing is gaining attention in the AI market, with companies like Rigetti Computing, D-Wave Quantum, and IonQ attracting investors. However, many are still in early development stages and not generating significant revenue.
Nvidia is positioned to benefit from this trend. The company combines powerful graphics processing units (GPUs) with its software platform, CUDA, to enhance AI applications. Nvidia has introduced CUDA-Q, a new architecture aimed at quantum computing.
Despite recent stock volatility due to competition from a Chinese AI platform, Nvidia's shares have rebounded. Analysts predict a 23% increase in stock value, with Nvidia's strong market presence and demand for AI infrastructure supporting its growth.
Source: https://www.fool.com/investing/2025/02/20/one-incredible-artificial-intelligence-ai-quantum/
Waymo expands driverless car services to Atlanta and Austin
Autonomous vehicles are expanding in the U.S., with Waymo set to launch services in Atlanta and Austin, adding to its operations in Phoenix, San Francisco, and Los Angeles. Other companies like Zoox and May Mobility are also testing their driverless vehicles in various locations.
Currently, no fully self-driving cars are available for purchase. Most vehicles on the market have lower-level autonomous features, requiring driver supervision. Safety concerns persist, highlighted by incidents involving Tesla and other AVs, leading to investigations and regulatory scrutiny.
While robotaxis are becoming more common, challenges remain in deployment due to varying road conditions and local regulations. Experts express caution about the safety of AVs compared to human drivers, emphasizing the need for further research and regulatory standards.
STMicroelectronics launches photonics chip for AI data centers in partnership with Amazon
STMicroelectronics announced the launch of a new photonics chip developed with Amazon Web Services (AWS) for AI data centers. This chip uses light instead of electricity to improve speed and reduce power consumption in communication devices.
The collaboration with AWS aims to enhance data center infrastructure as demand for AI technology grows. Major U.S. software companies plan to invest $500 billion in AI infrastructure, increasing the need for advanced computing and communication chips.
STMicroelectronics will produce the chips at its factory in Crolles, France. The market for optical transceivers is expected to grow from $7 billion in 2024 to $24 billion by 2030.
Source: https://finance.yahoo.com/news/stmicroelectronics-launch-data-centre-photonics-090515710.html
Social Security faces insolvency in nine years as tax proposals emerge
Social Security is projected to face insolvency in about nine years, with benefits potentially cut by 17% starting in 2035. To address funding issues, some propose increasing taxes on the wealthy, which could help but won't fully resolve the problem.
Currently, Social Security taxes apply only to the first $176,100 of income. Raising or eliminating this cap could reduce the program's shortfall by about 53%, extending its viability for a few more years, but further measures will be needed.
No single solution will fix Social Security's financial challenges. A mix of strategies, including potential tax increases and benefit adjustments, will likely be necessary. Congress will ultimately decide on the reforms needed.
Source: https://www.fool.com/retirement/2025/02/20/taxing-the-rich-wont-fix-social-security/
Ionis Pharmaceuticals reports Q4 2024 earnings and launches first independent product
Ionis Pharmaceuticals reported its Q4 2024 earnings, highlighting the successful launch of its first independent product, TRYNGOLZA, approved by the FDA in December for treating familial chylomicronemia syndrome. This marks a significant step for the company as a commercial-stage biotechnology firm.
The company plans to launch three more independent products in the next three years, including treatments for hereditary angioedema and severe hypertriglyceridemia. Additionally, Ionis expects four launches from partnered programs targeting serious diseases like cardiovascular conditions and chronic hepatitis B.
Ionis aims to expand its market presence and revenue through these new products, while continuing to support existing partnered medicines. The company is focused on delivering innovative treatments to patients and achieving sustained revenue growth.
Source: https://ca.finance.yahoo.com/news/q4-2024-ionis-pharmaceuticals-inc-091617222.html
Foreign direct investment in China hits four-year low in January
Foreign direct investment (FDI) in China fell to a four-year low in January, totaling 97.6 billion yuan ($13.4 billion), a 13% decrease from last year. This follows a 27.1% drop in total FDI for 2022.
China's vice commerce minister attributed the decline to a slow global recovery, geopolitical tensions, and competition from domestic brands. The government has introduced a 20-point action plan to attract foreign investment, including expanding foreign ownership in key sectors.
Challenges for foreign investment have increased due to rising political tensions and new security laws. Many U.S. businesses are considering moving operations out of China amid worsening bilateral relations and ongoing trade tensions.
Source: https://www.cnn.com/2025/02/20/economy/china-fdi-jan-decline-intl-hnk/index.html
Global financial markets react to Trump's first month in office
Since Donald Trump's inauguration on January 20, 2025, global financial markets have shown notable trends. The US dollar has declined 2.2% from its peak, influenced by delayed tariffs and profit-taking. Meanwhile, US government bond yields have also fallen.
Global stock markets, particularly in Europe, have risen due to expectations of lower interest rates and strong corporate earnings. Trump's peace talks with Russia have boosted European defense stocks, while his proposed investments in AI and deregulation have supported various sectors.
Gold prices have surged 8% amid concerns over a potential trade war and a weaker dollar. In contrast, crude oil prices have dropped, aligning with Trump's push for increased production. Bitcoin has seen a 4% decline as optimism wanes over his crypto policies.
Texas wind energy generation set to double as clean power share rises
Texas is set to see a significant increase in wind energy generation, expected to more than double by the end of February. This rise could push the combined share of wind and solar power above 30% for the first time in 2025.
Wind farms are currently the second-largest power source in Texas, following natural gas. In 2024, they contributed an average of 29.8% to the state's electricity production, with wind generation peaking from March to May.
If forecasts hold, daily wind power output could rise from 7,500 megawatt hours to 17,000 megawatt hours. This increase may help Texas reduce its reliance on fossil fuels and lower overall emissions in the power sector.
Silicon Valley drives defense innovation as Pentagon focuses on artificial intelligence
The U.S. defense sector is increasingly focused on artificial intelligence as a key area of competition, particularly with Russia. This shift marks a significant change from traditional military technologies like fighter jets and nuclear weapons.
Silicon Valley companies are now playing a crucial role in developing defense technologies. Their innovations are becoming essential for national security in the current geopolitical climate.
This trend highlights a growing collaboration between tech firms and the Pentagon. The emphasis on AI reflects the evolving nature of warfare and defense strategies.
US conducts first missile test of 2025 with Minuteman III launch from California
The U.S. conducted its first missile test of 2025, launching an unarmed Minuteman III intercontinental ballistic missile from California. The missile traveled over 4,200 miles to a test site in the Pacific Ocean.
The U.S. Air Force stated the test was routine and not a response to current global events. They notified Russia in advance, but it is unclear if China received prior warning.
The Minuteman III is part of the U.S. nuclear triad, which is being modernized. The new Sentinel ICBM is set to replace the Minuteman III, though it faces delays and budget issues.
Source: https://www.newsweek.com/us-news-test-minuteman-iii-icbm-vandenberg-marshall-islands-pacific-2033529
Global defense spending rises to 2.46 trillion dollars in 2025 with US leading the way
In 2025, global defense spending reached USD 2.46 trillion, up from USD 2.24 trillion in 2024. This increase reflects rising security threats and geopolitical instability, particularly in Europe, the Middle East, and Asia.
The United States leads defense expenditures at USD 895 billion, making up 62.3 percent of the top five countries' total. China follows with USD 266.85 billion, and Russia at USD 126 billion.
India ranks fourth globally with a defense budget of USD 75 billion, accounting for 13.45 percent of its total government spending. The country continues to focus on modernization and technological advancements in its military.
China holds benchmark lending rates steady in February
China has kept its benchmark lending rates steady in February, maintaining the one-year loan prime rate at 3.10% and the five-year rate at 3.60%. This decision reflects a cautious approach to monetary policy amid economic uncertainties.
The central bank's decision comes as the yuan weakens and trade tensions rise with the new U.S. administration. In January, Chinese banks issued 5.13 trillion yuan in new loans, significantly higher than December, but year-on-year growth remains at a record low.
Authorities are likely to guide deposit rates lower and support bank capital to ease pressure on commercial banks. The central bank plans to adjust its monetary policy as needed, considering external challenges.
White House proposes annual 8% cut to defense budget through 2030
The White House plans to cut defense spending by 8% annually through 2030, potentially reducing military budgets by nearly $300 billion over five years. Defense Secretary Pete Hegseth has ordered military officials to draft a budget plan by February 24.
Seventeen categories, including nuclear weapons and border operations, will be exempt from these cuts. This proposal contrasts with recent discussions among lawmakers, particularly Republicans, who have been advocating for increased defense spending.
The current defense budget is nearly $850 billion, with projections reaching close to $900 billion by 2030. Hegseth's plan could lower that figure to about $560 billion, the smallest budget since 2006.
Federal Reserve navigates challenges of inflation and tariffs as interest rates fluctuate
The Federal Reserve is facing challenges with rising inflation, tariffs, and energy prices. These factors are affecting consumer spending, which is vital for the U.S. economy.
Interest rates have been cut, but inflation data has recently increased, creating uncertainty for the Fed's future decisions.
Experts suggest that monitoring inflation trends is essential as the Fed may maintain a higher neutral rate. The situation requires careful observation of economic data moving forward.
Source: https://ca.finance.yahoo.com/video/fed-precarious-spot-between-rates-200809460.html