Anti-Clickbait News Summaries for February 8, 2025
Meta and Amazon could challenge Nvidia's AI dominance in coming years
Hi, it’s Jack and The Stock Insider team with your daily news summaries 😇
The Podcast:
The Markets:
Futures Highlights
The futures market is showing mixed signals. Energy commodities like Crude Oil and Gold are inching higher, while key equity-related instruments, including major indices, are sliding lower.
🟢 Crude Oil: 71.06 ( +0.45 | +0.64% )
🔴 Natural Gas: 3.3130 ( -0.0950 | -2.79% )
🟢 Gold: 2886.10 ( +9.40 | +0.33% )
🔴 Dow: 44415.00 ( -448.00 | -1.00% )
🔴 S&P 500: 6050.00 ( -56.00 | -0.92% )
🔴 Nasdaq 100: 21575.25 ( -296.50 | -1.36% )
🔴 Russell 2000: 2289.30 ( -25.60 | -1.11% )
Forex & Bonds Highlights
In the forex and bonds arena, the US dollar pairs are largely subdued with minor moves, while treasury yields are climbing steadily across all maturities. Bitcoin remains nearly unchanged amid a calm forex backdrop.
🔴 EUR/USD: 1.0326 ( -0.0057 | -0.55% )
🟢 USD/JPY: 151.39 ( +0.03 | +0.02% )
🔴 GBP/USD: 1.2399 ( -0.0033 | -0.27% )
🟢 BTC/USD: 96345.20 ( +64.40 | +0.07% )
🟢 5-Year Treasury: 4.334 ( +0.061 | +1.43% )
🟢 10-Year Treasury: 4.487 ( +0.047 | +1.06% )
🟢 30-Year Treasury: 4.69 ( +0.04 | +0.86% )
Major News Highlights
The stock market is exhibiting wide divergence today. While several stocks are surging—led by strong gains from PINS, NET, and EXPE—others, including key tech names, are suffering significant losses.
🟢 PINS: +19.08%
🟢 NET: +17.76%
🟢 EXPE: +17.27%
🟢 UBER: +6.59%
🟢 HOOD: +5.06%
🟢 NVDA: +0.90%
🟢 META: +0.36%
🔴 PLTR: -0.39%
🔴 MSFT: -1.46%
🔴 AAPL: -2.40%
🔴 GOOG: -3.19%
🔴 GOOGL: -3.27%
🔴 TSLA: -3.39%
🔴 AMZN: -4.05%
🔴 X: -5.83%
🔴 ELF: -19.62%
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Beyond the Paywall:
Events Affecting The Markets Today & Beyond
Most Impactful News Summaries
Today:
Below is a detailed look at what’s scheduled to occur today—Saturday, February 8, 2025—that could impact U.S. stocks (directly or indirectly), even though the regular trading session is closed on weekends.
Economic Data Releases
1. CNY FX Reserves (USD) – 00:08 (GMT+2)
What It Is:
This report details China’s foreign exchange reserves held in U.S. dollars for January. Although it is a Chinese statistic, the data is closely watched by global market participants because fluctuations in China’s FX reserves can signal shifts in its monetary policy or capital flows.Potential Impact:
Changes in China’s FX reserves may indirectly affect U.S. markets by influencing the USD–CNY exchange rate and global capital flows. For example, a sharper-than-expected drop might add pressure on the dollar, thereby influencing multinational earnings and commodity prices that factor into U.S. equity valuations.Deep Research Insight:
Analysts monitor these figures as an indicator of Chinese economic health and policy shifts. In turn, such insights can lead U.S. investors to adjust their outlook on global growth and risk sentiment.
2. Atlanta Fed GDPNow (Q1) – 02:00 (USD)
What It Is:
The Atlanta Fed’s GDPNow model provides a real‐time forecast of U.S. gross domestic product (GDP) growth for the current quarter. Unlike official GDP reports—which are released with a delay—GDPNow is updated frequently and offers a timely snapshot of economic momentum.Potential Impact:
A stronger (or weaker) than expected GDPNow reading can adjust market expectations regarding economic growth and corporate earnings. This, in turn, can affect sector-specific sentiment—especially for cyclical stocks sensitive to economic expansion.Deep Research Insight:
Given that GDPNow is one of several indicators that investors monitor for a near-term view of economic activity, its release today will be integrated into broader assessments of growth prospects. This can influence trading strategies when markets reopen on Monday.
3. U.S. Baker Hughes Oil Rig Count & Total Rig Count – Both at 02:00 (USD)
What They Are:
These two related data releases provide counts of active oil rigs in the U.S.—one specifically for drilling activity (Oil Rig Count) and the other giving a combined total (Total Rig Count). They serve as proxies for activity in the energy sector.Potential Impact:
Energy stocks (especially oil companies) and broader market sentiment are often sensitive to changes in rig counts. An increase suggests rising drilling activity and potential higher production, which can be bullish for oil prices and, by extension, for companies within the energy sector. Conversely, a decline might reinforce concerns about an economic slowdown or lower commodity demand.Deep Research Insight:
These counts are frequently cited by sector analysts. Given that the energy sector is a significant component of many U.S. indices, shifts in rig activity can have knock-on effects for market sentiment and valuations ahead of the next trading session.
Other Noteworthy Events
4. Educational Webinar – “Stock Market 101: The Rise of AI”
What It Is:
An event hosted on Eventbrite titled “Stock Market 101: The Rise of AI” is scheduled for today. This live webinar is designed to educate investors on how artificial intelligence is reshaping markets.Potential Impact:
Although it is primarily educational, such events can influence retail investor sentiment. Broader public discourse on the impact of AI on market fundamentals may bolster interest in tech stocks or even affect opinions on emerging risks and opportunities.Deep Research Insight:
In an era where technological innovation is a key market driver, webinars and investor education events contribute to the overall narrative. While their immediate market impact is generally indirect, they can shift sentiment over time if they gain significant traction among investors.
Summary
No Corporate Earnings or Policy Announcements:
Earnings calendars (such as those from TipRanks and Nasdaq) confirm that there are no company earnings releases scheduled for today. Likewise, no U.S. government or Federal Reserve policy announcements are set for Saturday.Economic Indicators & Energy Data:
The key scheduled releases—the CNY FX Reserves, Atlanta Fed’s GDPNow, and Baker Hughes rig counts—are all set to be published early today. While these will not move prices immediately (given the market’s closure), they will likely shape investor expectations for the upcoming trading week.Investor Education:
Supplementing these economic releases is an educational webinar on AI’s impact on the markets, which reflects ongoing investor interest in technological disruption.
Most Impactful News Summaries:
Conduit Pharmaceuticals advances AI-driven drug development to Phase II
Conduit Pharmaceuticals Inc. has advanced its AI-driven drug development to Phase II. This marks a significant step in its efforts to leverage artificial intelligence for pharmaceutical innovation.
The company is gaining attention alongside other AI firms, particularly DeepSeek, which has introduced a cost-effective AI model. This reflects a broader trend of increasing efficiency and accessibility in AI development.
Recent reports indicate that AI investment is expected to grow, with major tech firms likely to increase spending in 2025. The focus is shifting towards physical infrastructure to support AI advancements, while both high-cost and low-cost models are anticipated to coexist.
Source: https://ca.finance.yahoo.com/news/conduit-pharmaceuticals-inc-cdt-advances-110825507.html
IBM approaches $1 billion in quantum computing contracts as it leads the industry
IBM has signed nearly $1 billion in quantum computing deals since 2017, positioning itself as a leader in the field. The company operates almost 80 quantum systems, including 13 with over 100 qubits, and has developed the popular Qiskit software platform.
While quantum computing is not yet commercially viable, industry-wide revenue could reach $2 billion by 2030, according to BCG. IBM expects to demonstrate an error-corrected quantum computer by 2028, which could lead to significant advancements in the technology.
Unlike smaller quantum-focused companies, IBM is financially stable, with projected annual revenue growth exceeding 5%. Its success in hybrid cloud computing and AI supports its profitability, making it a lower-risk investment for those interested in quantum technology.
Meta and Amazon could challenge Nvidia's AI dominance in coming years
Nvidia has been a major player in artificial intelligence, with its stock price rising significantly since the launch of ChatGPT in late 2022. Its current market cap is around $2.9 trillion, driven by strong demand for its GPUs.
Meta Platforms and Amazon are two companies that may surpass Nvidia's valuation in the next few years. Meta is investing heavily in AI and data centers, which could enhance its advertising revenue and user engagement. Amazon's profitability has surged, particularly through its cloud computing business, and it plans to continue significant investments.
Both companies are positioned for growth, with Meta potentially reaching a $3 trillion valuation and Amazon also aiming for a similar market cap. Their advancements in AI and cloud services could challenge Nvidia's dominance in the sector.
Venture capitalists back 12 AI robotics startups transforming healthcare and logistics
Venture capitalists are increasingly interested in AI-powered robotics startups. Twelve companies have raised between $75 million and $150 million in funding, focusing on autonomous robots for healthcare and logistics.
These startups utilize AI and spatial intelligence to enhance robot navigation and task completion. This marks a shift from traditional robotics to more complex applications, allowing robots to perform tasks like organizing warehouses and assisting in surgeries.
The trend indicates a growing expectation for 2025 to be a significant year for AI agents in robotics, as advancements enable robots to handle more dynamic and varied tasks without extensive human intervention.
Alphabet and Microsoft advance in quantum computing technology
Quantum computing stocks are gaining attention as companies make progress in this complex technology. Two notable stocks are Alphabet and Microsoft, both of which have established businesses and are advancing in quantum computing.
Alphabet recently announced its quantum chip, Willow, which significantly reduces errors and performs complex computations much faster than current supercomputers. The company aims to demonstrate real-world applications for this technology in the future.
Microsoft is also expanding its quantum capabilities through its Azure cloud platform. The company launched a Quantum Ready program to help businesses prepare for quantum computing, allowing them to access tools and hardware now, while working towards a quantum supercomputer.
Taiwan officials visit US to discuss potential Trump tariffs on semiconductors
Taiwan has sent officials to the U.S. to discuss potential tariffs from President Donald Trump. Economy Minister Kuo Jyh-huei stated that Taiwan is preparing for these tariffs, particularly concerning the semiconductor industry.
Trump plans to announce reciprocal tariffs on various economies soon, escalating his trade strategy. Kuo mentioned that Taiwan's trade surplus with the U.S. increased significantly last year, driven by high-tech exports.
Kuo indicated that Taiwan might increase imports of U.S. energy, similar to Japan's approach. He emphasized Taiwan's strong partnership with the U.S. and the mutual benefits of their chip industry cooperation.
Source: https://www.reuters.com/world/taiwan-sends-officials-us-discuss-possible-trump-tariffs-2025-02-08/
Neuralink enables paralyzed man to control computers with thoughts after brain implant
Elon Musk's Neuralink has successfully implanted a brain-computer interface in Noland Arbaugh, a 30-year-old man paralyzed since 2016. This allows him to control a computer using only his thoughts, marking a significant advancement in brain technology.
Noland's experience differs from previous brain-computer interfaces due to Neuralink's advanced design, featuring 1,024 electrodes. While he initially faced challenges, including a malfunction, he now uses the implant to play games and browse the internet, showcasing its potential.
Despite the success, concerns about privacy and ethical implications remain. Noland acknowledges the risks of mind-reading technology but remains optimistic about its future applications, including potential enhancements for those with disabilities.
Analysts explore potential shift in U.S. Dollar dominance as global currency dynamics evolve
Recent discussions suggest a shift in the dominance of the U.S. Dollar. Analysts are exploring potential changes in global currency dynamics as 2025 approaches.
Investors are increasingly concerned about economic stability, with some speculating about a possible downturn.
These developments mark a notable change from previous confidence in the Dollar's position in the global market.
New book examines impact of U.S. sanctions on global economy and American power
A new book titled "Chokepoints: American Power in the Age of Economic Warfare" by Edward Fishman explores the impact of U.S. sanctions. It highlights how these measures have become central to U.S. power but may also contribute to its decline.
Fishman discusses the evolution of U.S. sanctions, particularly against Iran and Russia, showing how they have adapted over time. He warns that the overuse of sanctions could weaken the U.S. dollar's dominance and encourage countries to seek alternatives.
Countries like China and Russia are developing ways to bypass U.S. financial systems. This shift could lead to a fragmented global economy, challenging the effectiveness of economic warfare in the future.
DeepMind's AlphaGeometry2 AI outperforms International Mathematical Olympiad gold medalists in geometry
DeepMind's new AI, AlphaGeometry2, reportedly outperforms average gold medalists in geometry problems from the International Mathematical Olympiad. It solved 84% of geometry problems from the last 25 years, surpassing the average score of 40.9.
AlphaGeometry2 is an upgrade from the previous AlphaGeometry, combining a neural network model with a symbolic engine. This hybrid approach allows it to suggest and verify steps in solving geometry problems, using synthetic data to train on over 300 million theorems.
Despite its success, AlphaGeometry2 has limitations, struggling with certain problem types. It also performed less well on more challenging problems. The study highlights ongoing debates about the effectiveness of combining symbolic AI with neural networks for future advancements.
Experts call for urgent global framework as AI consciousness and creative rights raise ethical concerns
Recent discussions on AI consciousness raise ethical concerns about potential suffering if AI becomes conscious. Experts emphasize the uncertainty surrounding AI consciousness and suggest a cautious approach to understanding it, while also highlighting existing moral obligations to living organisms.
The focus of AI regulation is shifting. Experts argue that current discussions prioritize AI training over the processing of creative works. They stress the need for a balanced approach to protect creative industries from potential misuse of AI-generated content.
The release of China's DeepSeek AI model underscores the need for global governance in AI development. Experts warn that fragmented national policies could lead to misuse and call for a unified international framework to ensure ethical AI practices and accountability.
US-China trade tensions escalate as tariffs and antitrust investigations target Big Tech
The U.S. has imposed a 10% tariff on all Chinese goods, escalating tensions in the trade war with China. In response, China has opened an antitrust investigation into Google and is considering similar actions against Apple and Intel.
Apple faces challenges from both the U.S. and China. The tariff could raise prices on its products, while China's investigation targets its App Store practices. Apple previously sought tariff exemptions, but it is unclear if it will do so again.
Despite these pressures, analysts suggest that the financial impact on Apple may not be severe. Other tech companies like Intel and Nvidia are also under scrutiny, highlighting the ongoing economic conflict between the two nations.
Ilya Sutskever's AI startup seeks funding at $20 billion valuation
Ilya Sutskever's AI startup, Safe Superintelligence, is in discussions to raise funds at a valuation of at least $20 billion. This marks a significant increase from its previous valuation of $5 billion last September.
The startup has not yet generated revenue and is seeking a substantial amount in funding. It has raised $1 billion to date, with investors including Sequoia Capital and Andreessen Horowitz.
Safe Superintelligence's specific projects remain largely unknown. The company includes notable figures from OpenAI and Apple, and Sutskever is recognized for his contributions to AI advancements.
Researchers develop AI chip the size of a grain of salt to enhance data processing
Researchers at China's University of Shanghai for Science and Technology have developed a new AI chip that is the size of a grain of salt. This chip uses light to analyze data, significantly reducing energy consumption compared to traditional methods.
The chip is designed to work with fiber optic cables, which can transmit data at light speed but require slower equipment for processing. The new technology allows for faster data analysis by manipulating light directly.
While the chips can successfully read and recreate images quickly and with low energy, they are not yet perfect. Each chip must be customized for specific tasks, and minor imperfections can affect performance.
Source: https://www.popsci.com/technology/ai-fiber-optic-chip/
SpaceX launches 21 Starlink satellites from Florida today
SpaceX is launching 21 Starlink satellites today, February 7, from Cape Canaveral Space Force Station in Florida. This mission includes 13 satellites with direct-to-cell capability. The launch window opens at 1:52 p.m. EST.
The Falcon 9 rocket's first stage will return to Earth about eight minutes after liftoff, landing in the Atlantic Ocean. This will mark the 17th launch and landing for this booster, which has completed 16 flights, mostly for Starlink.
In 2025, SpaceX has conducted 16 Falcon 9 missions, with 10 dedicated to Starlink. The company also completed a test flight of its Starship megarocket on January 16, which had mixed results.
US dollar declines despite rising bond yields following mixed jobs report
The US dollar is declining following a mixed non-farm payrolls report, which showed lower unemployment but also a softer headline. Despite rising US bond yields, the dollar's value is dropping, indicating unusual market behavior.
This divergence may suggest increased interest in equities. Market participants are also assessing the trade war situation, with a reduced likelihood of actual tariff implementation by Trump on major trading partners.
Additionally, Trump is proposing significant tax cuts that could increase the deficit by $11 trillion over ten years. This situation may create uncertainty regarding the dollar, even as yields rise.
Trump advocates for regulatory framework for digitized stocks and bonds using blockchain technology
Former President Trump is advocating for a regulatory framework for "digitized" stocks and bonds that could be traded using blockchain technology. This shift is gaining attention from Wall Street executives, including BlackRock's CEO Larry Fink.
Fink highlighted the need for digitized financial instruments at the World Economic Forum, noting that other countries are ahead in adopting blockchain for financial transactions. Trump has formed a task force led by David Sacks to promote AI and cryptocurrency.
The proposed blockchain system aims to streamline trading by reducing settlement times and eliminating costs associated with traditional banking. However, establishing a secure regulatory framework for this new trading system remains a challenge.
Geoffrey Hinton raises concerns over Google’s shift on AI weapons policy
Google has lifted its ban on using artificial intelligence for weapons and surveillance, reversing its previous stance. The company had previously committed to not developing technologies that could harm human rights.
Critics, including Amnesty International, express concern that this decision could lead to increased surveillance and potential human rights violations. They argue that AI technologies could facilitate mass surveillance and lethal systems.
Google justified the change by stating that collaboration with businesses and governments is necessary for AI that supports national security. The company’s new approach has raised alarms about the implications for privacy and civil rights.