Anti-Clickbait News Summaries for February 1, 2025
Expert warns quantum computing may threaten Bitcoin security
Hi, it’s Jack and The Signals.Doctor team with your daily news summaries 😇
The Markets:
Futures Highlights
Today’s futures show a mixed picture: energy commodities are on the rise while equity index futures are mostly trailing. Overall, crude oil and natural gas are leading the gains, whereas major equity benchmarks are dipping.
🟢 Crude Oil: 73.81 (Change: +1.08 | +1.48%)
🟢 Natural Gas: 3.0720 (Change: +0.0250 | +0.82%)
🔴 Gold: 2831.50 (Change: -13.70 | -0.48%)
🔴 Dow: 44700.00 (Change: -355.00 | -0.79%)
🔴 S&P 500: 6065.50 (Change: -33.75 | -0.55%)
🔴 Nasdaq 100: 21571.00 (Change: -53.75 | -0.25%)
🔴 Russell 2000: 2294.40 (Change: -21.90 | -0.95%)
Forex & Bonds Overview
The forex pairs and treasury yields continue to show modest fluctuations. While the US Treasury yields have risen noticeably, major currency pairs are experiencing small shifts with a few declines.
🔴 EUR/USD: 1.0356 (Change: -0.0033 | -0.32%)
🔴 GBP/USD: 1.2390 (Change: -0.0025 | -0.20%)
🟢 USD/JPY: 155.16 (Change: +0.87 | +0.56%)
🔴 BTC/USD: 101285.90 (Change: -952.70 | -0.93%)
🟢 5-Year Treasury: 4.364 (Change: +0.053 | +1.23%)
🟢 10-Year Treasury: 4.569 (Change: +0.057 | +1.26%)
🟢 30-Year Treasury: 4.813 (Change: +0.055 | +1.16%)
Major News Stocks
In the stock arena, the performance is highly varied. From a standout gain for TEAM to a steep drop for DECK, the market sentiment swings broadly across sectors.
Sorted from biggest winner to biggest loser:
🟢 TEAM: (Change: +14.92%)
🟢 ABBV: (Change: +4.70%)
🟢 GOOGL: (Change: +1.57%)
🟢 PLTR: (Change: +1.56%)
🟢 GOOG: (Change: +1.47%)
🟢 AMZN: (Change: +1.30%)
🟢 TSLA: (Change: +1.08%)
🟢 META: (Change: +0.32%)
⚪ MSFT: (Change: +0.02%)
🔴 AAPL: (Change: -0.67%)
🔴 NKE: (Change: -1.83%)
🔴 XOM: (Change: -2.50%)
🔴 NVDA: (Change: -3.67%)
🔴 CVX: (Change: -4.56%)
🔴 CL: (Change: -4.61%)
🔴 DECK: (Change: -20.51%)
You can find my most significant newsletter (over 500k active subscribers) at:
Beyond the Paywall:
The Daily News Podcast
Events Affecting The Markets Today & Beyond
Most Impactful News Summaries
Podcast:
Read:
Today:
Below is a detailed look at the key developments slated for Saturday, February 1, 2025, that could influence the US stock market—both directly and indirectly. Although the regular US equity markets are closed on weekends, several scheduled policy actions and economic data releases may affect investor sentiment, expectations for certain sectors, and ultimately market behavior when trading resumes.
1. Tariff Implementation by the Administration
What’s Happening:
U.S. President Donald Trump is set to impose a new round of tariffs effective immediately on Saturday. According to Reuters, the administration will enforce a 25% tariff on imports from Canada and Mexico and a 10% tariff on Chinese goods. The tariffs are primarily justified by concerns over illegal fentanyl imports, which the White House claims have resulted in significant loss of life.
Direct and Indirect Market Implications:
Trade and Corporate Earnings:
The sudden imposition of these tariffs could directly impact companies that rely on imported raw materials or intermediate goods from these countries. Industries such as manufacturing, consumer goods, and even tech hardware might see increased input costs, which in turn could affect profit margins and earnings expectations.Sector Rotation and Volatility:
As markets react to new trade policies, investors might reallocate capital toward sectors that are either less exposed to international trade risks or even stand to benefit from a more protectionist policy stance. For example, domestic producers might gain competitive advantages, while export‐oriented companies could suffer.Broader Economic and Geopolitical Effects:
Beyond immediate cost concerns, such tariffs have the potential to alter diplomatic relations and disrupt long-established supply chains. This can lead to heightened uncertainty, which may spur increased volatility in both domestic equity and currency markets.
Source:
2. Baker Hughes Oil Rig Count Release
What’s Happening:
At around 02:00 UTC on Saturday, the Baker Hughes Oil Rig Count will be released. This weekly data report provides an update on the number of active drilling rigs in the United States.
Direct and Indirect Market Implications:
Energy Sector Indicator:
The rig count is a widely followed proxy for activity in the oil and gas industry. An increase generally suggests more exploration and production activity, which could be bullish for energy stocks, while a decline might indicate a slowdown in production.Broader Economic Impact:
Since energy prices have a pervasive influence on the broader economy—from transportation costs to the price of consumer goods—a significant change in drilling activity can ripple across other sectors.Investor Sentiment:
In an environment already charged by the tariff announcement, the rig count data can either reinforce or mitigate concerns about economic activity and inflation pressures, potentially influencing the sentiment that will be factored into trading decisions when markets open.
Source:
Additional Considerations
Weekend Trading in ETFs:
While the official US stock markets are closed on Saturdays, data shows that ETFs such as the SPDR S&P 500 ETF Trust (SPY), SPDR Dow Jones Industrial Average ETF (DIA), and Invesco QQQ Trust (QQQ) are trading on alternative platforms. However, these price movements are generally not considered “official” market events and tend to be driven by after-hours or off-exchange activity.Earnings and Other Data:
Economic calendars (e.g., from Equals Money and Trading Economics) indicate that aside from the Baker Hughes report, there are no major earnings announcements or other policy changes scheduled exactly for February 1, 2025. Most high-profile corporate earnings and additional economic data are slated for later in the week.
Summary
In summary, the two main events that could shape market sentiment on Saturday, February 1, 2025, are:
The Tariff Announcement:
A direct policy action by President Trump imposing 25% tariffs on goods from Canada and Mexico and 10% on Chinese imports.
Likely to have broad ramifications across trade, corporate profitability, and overall market volatility.
The Baker Hughes Oil Rig Count:
A key weekly indicator for US oil industry activity.
May indirectly influence energy stocks and broader market sentiment regarding economic activity.
Investors will be watching these developments closely as they could set the tone for market behavior once regular trading resumes. While these events are scheduled for a weekend when traditional trading is off, their impact on expectations, sector allocations, and risk sentiment could be significant.
Sources:
Most Impactful News Summaries:
MIT highlights ten breakthrough technologies poised to transform lives in 2025
MIT has identified ten breakthrough technologies expected to impact lives in 2025 and beyond. Key developments include the Vera C. Rubin Observatory, which will begin a decade-long survey of the southern sky, enhancing our understanding of space.
Generative AI search and small language models are set to improve accessibility and efficiency in finding information. Additionally, Waymo plans to expand its robotaxi testing to ten new cities, marking a significant step in autonomous transportation.
Fast-learning robots and effective stem-cell therapies are also highlighted. These advancements could revolutionize production processes and medical treatments, respectively, indicating a transformative year ahead in technology.
Source: https://bgr.com/tech/mit-names-10-breakthrough-technologies-to-watch-in-2025/
Venture debt lenders shape startup landscape as failures rise in 2025
Venture debt lenders are increasingly influencing startup outcomes in 2025, following several high-profile failures. The accounting startup Bench shut down after lenders called in its loan, while Convoy was taken over by Hercules Capital due to financial struggles.
Many startups are facing pressure from lenders to sell themselves to limit losses. Venture debt, which reached a record $53.3 billion in 2024, poses risks as companies with high debt may be forced into fire sales or foreclosure.
Despite the risks, venture debt remains attractive, especially for AI companies. Notable deals include CoreWeave's $7.5 billion and OpenAI's $4 billion in debt financing, highlighting ongoing investment interest in the sector.
Alibaba unveils new AI model as competition with U.S. intensifies
Alibaba has announced its new AI model, Qwen 2.5, claiming it can compete with top models from OpenAI and Meta. This development highlights the ongoing competition in AI technology between the U.S. and China.
The launch of DeepSeek by a Chinese company has raised concerns in the U.S. tech sector. Senator Josh Hawley is proposing legislation to limit U.S.-China collaboration on AI development in response to this competition.
In another advancement, Ambi Robotics has introduced AmbiStack, a robotic system designed to improve warehouse automation by efficiently stacking items onto pallets and into containers.
Source: https://www.foxnews.com/tech/ai-newsletter-another-chinese-company-flexes-ai-muscle
Trump announces $500 billion Stargate project to boost AI infrastructure in the U.S
President Trump announced a $500 billion AI infrastructure project called Stargate, with major investments from companies like Oracle, SoftBank, and OpenAI. This initiative aims to enhance AI technology in the U.S. over the next four years.
While traditional AI companies are expected to benefit, some analysts suggest that nuclear energy stocks may also gain. Companies like Constellation Energy and Oklo are highlighted for their potential roles in supporting AI infrastructure through efficient power sources.
Constellation Energy has partnered with Microsoft to build nuclear plants and secured over $1 billion in contracts. Oklo, focused on recycling nuclear power, has seen significant stock growth but remains unprofitable. Both companies are viewed as potential winners from the Stargate project.
Foreign hackers exploit Google's Gemini for cyberattacks on the US
Foreign hackers are now using Google’s AI chatbot, Gemini, to assist in cyberattacks against the U.S. Reports indicate that groups from China, Iran, Russia, and North Korea are employing the tool for tasks like writing malicious code and conducting research.
WhatsApp revealed that nearly 100 journalists and activists were targeted by spyware from Paragon Solutions. The spyware, known as Graphite, can access encrypted messages without the victim needing to click on anything, raising concerns about privacy and security.
Hackers from last year’s AT&T data breach sought information on prominent figures, including politicians. They accessed 50 billion records and aimed to create a searchable database for a fee. Two individuals linked to the breach have been identified and arrested.
Source: https://www.wired.com/story/hackers-google-gemini-us-cyberattacks/
IBM reports strong growth in AI contracts as market shifts with new competitor
IBM has shifted its AI strategy to focus on enabling other businesses to use AI effectively. The company reported a significant increase in its generative AI business, securing nearly $2 billion in new contracts in the last quarter, totaling $5 billion.
Recent developments in AI, particularly from the Chinese start-up DeepSeek, suggest that powerful AI models can be trained and run at a much lower cost. This could disrupt the current AI market, which has relied on expensive infrastructure.
IBM's watsonx platform supports various AI models and is compatible with multiple cloud services, making it appealing to businesses. The company anticipates a revenue growth of at least 5% in 2025, driven by its expanding AI services and other business segments.
China's DeepSeek chatbot gains traction as it tops downloads in major markets
China's new AI chatbot, DeepSeek, has gained significant attention, becoming the most downloaded app in India, the US, and the UK. Its launch has caused a $1 trillion loss for major American tech companies, particularly Nvidia.
In aviation news, an American Airlines plane collided with a US Army Black Hawk helicopter in Washington, DC, resulting in no survivors. Investigations are ongoing, with questions about human error and airspace management.
Tensions continue between India and Bangladesh, as the interim government leader, Mohammed Yunus, met with Alexander Soros. This meeting follows a deterioration in relations since the ousting of Prime Minister Sheikh Hasina.
Expert warns quantum computing may threaten Bitcoin security
Quantum computing may threaten Bitcoin and other cryptocurrencies, according to Taqi Raza, a computer engineering expert. He discussed this with Mizuho analysts, highlighting that quantum technology could undermine current cryptographic security methods.
Raza pointed out that the "Elliptic Curve" digital signature algorithm and "SHA-256" authentication could be particularly vulnerable. He noted that advancements in error correction and software could make quantum computing feasible.
To address these risks, Raza suggested using hybrid security models that combine quantum and classical encryption. He also mentioned the potential for developing new algorithms that are resistant to quantum attacks as a long-term solution.
Source: https://finance.yahoo.com/news/quantum-computing-could-pose-threat-090000490.html
Global trade shifts as countries impose restrictions and prioritize local production
Globalization is shifting as countries impose trade restrictions and review foreign investments. The U.S. has reduced imports from China, with Mexico now being the top supplier. This marks a significant change in global trade dynamics.
Digital platforms are gaining influence, with service exports rising significantly. The technology sector is becoming a key player in international trade, altering traditional manufacturing patterns.
Concerns over national security are driving countries to prioritize local production. The focus is now on strategic industries like semiconductors and clean energy, indicating a new phase of globalization.
Shell to install Jackdaw gas platform in North Sea despite drilling ban
Shell plans to install the Jackdaw gas platform in the North Sea this spring, despite a Scottish court ruling blocking drilling. The court found that previous approvals did not consider the environmental impact of burning gas and oil.
The ruling requires Shell to seek new government permissions to extract gas. The company has invested over £800 million since receiving initial approval in 2022 and is preparing to tow the platform into British waters soon.
The situation presents a challenge for the UK government, which aims to boost economic growth while balancing climate commitments. The ruling is viewed positively by climate advocates, who urge the government to reject further drilling approvals.
EU foreign policy chief calls for increased defense spending among member states
The EU's foreign policy chief, Kaja Kallas, has called for increased defense spending among member states to address growing threats, particularly from Russia. She emphasized that current spending levels, averaging 1.9% of GDP, are insufficient.
Kallas highlighted the need for a united approach to economically pressure Russia, suggesting a new sanctions package may be introduced next month to mark three years of the Ukraine war. She noted that Russia spends 9% of its GDP on defense.
Previously, Kallas advocated for NATO countries to aim for 3% of GDP on defense. NATO members had committed to at least 2% after Russia's annexation of Crimea in 2014. Kallas believes that increased spending is essential to support Ukraine and deter further aggression.
Source: https://www.bbc.com/news/articles/c3w87ynn2n2o
Texas governor bans DeepSeek and social media apps on government devices
Texas Governor Greg Abbott has banned the Chinese AI startup DeepSeek and social media apps Xiaohongshu and Lemon8 from government devices. This makes Texas the first state to impose such restrictions on DeepSeek, which has gained popularity recently.
The ban follows concerns about data security and foreign influence. Abbott stated that Texas aims to protect its infrastructure from potential threats posed by the Chinese Communist Party.
DeepSeek's rise has unsettled the tech community, as it competes with established players like OpenAI. Xiaohongshu and Lemon8 have also attracted U.S. users, especially after TikTok's temporary ban.
Trump threatens new tariffs on Chinese imports as manufacturers consider relocation
Donald Trump has threatened a 10% tariff on Chinese imports starting February 1, as part of his campaign to impose higher tariffs on China. This follows a previous trade war that significantly impacted Chinese businesses.
Chinese manufacturers, like a boot factory in Jiangsu, are uncertain about the future. Many are considering relocating production to Southeast Asia to avoid tariffs, which have already reduced their workforce and orders.
Some companies have already moved operations to countries like Cambodia, where they can produce goods without the same tariff pressures. Despite these shifts, China remains a key supplier for many businesses, with ongoing investments in high-end manufacturing.
Source: https://www.bbc.com/news/articles/c4g3z22938jo
DeepSeek AI launch shakes Wall Street as Big Tech earnings reveal mixed results
China's DeepSeek AI chatbot launch has impacted Wall Street, leading to a sell-off in Big Tech stocks. The new AI model is seen as a significant development in the industry.
Big Tech companies reported their earnings, highlighting AI initiatives. Meta's outlook is positive, while Tesla's earnings fell short of expectations. Microsoft emphasized the importance of AI in its performance.
The Federal Reserve decided to keep interest rates steady, influenced by uncertainties related to the Trump administration's economic policies. This decision reflects ongoing concerns in the market.
Source: https://ca.finance.yahoo.com/video/deepseek-ai-big-tech-earnings-230000404.html
US government may pursue over $1 billion from Johnson & Johnson for cancer treatment costs
The U.S. government may seek over $1 billion from Johnson & Johnson for medical costs related to cancer claims linked to its talc products. This comes as federal agencies object to J&J's proposed $10 billion settlement for ongoing lawsuits.
The Department of Health and Human Services estimates it could claim $1.1 billion under the Medicare Secondary Payer law. The government argues that J&J's bankruptcy plan could limit its reimbursement rights.
J&J is attempting to resolve thousands of lawsuits through bankruptcy, having faced previous rejections in court. A hearing on the settlement proposal is set for February 18.
Exxon Mobil plans natural gas power plant to meet data center energy demand faster than nuclear options
Exxon Mobil is advancing its plans to power AI data centers with natural gas and carbon capture technology. CEO Darren Woods stated that the company aims to have its carbon capture system operational by 2028, outpacing nuclear power options.
The company is constructing a 1.5 GW natural gas plant to supply electricity to data centers. This facility will utilize Exxon's pipeline network for transporting natural gas and storing carbon emissions, addressing the growing energy demands of the tech industry.
Exxon's recent earnings report showed a profit of $7.4 billion, despite concerns over tariffs affecting investor confidence. Other companies, like Chevron, are also exploring natural gas solutions for data center energy needs.
Intel faces challenges as AI landscape shifts towards practical applications
Intel Corporation is facing challenges as the AI landscape evolves. The focus is shifting from infrastructure to practical applications, making AI development more affordable and accessible. Open-source models are gaining traction, posing competition to proprietary systems.
Recent discussions highlight the growing demand for AI and changing investment strategies. Experts note that companies integrating AI into products may benefit the most, while those reliant on infrastructure could face uncertainty. The rise of open-source AI is reshaping the market.
Investors are closely monitoring these developments to see if they lead to significant innovation. The future of AI will depend on how effectively companies can implement these technologies into everyday solutions.
Source: https://ca.finance.yahoo.com/news/intel-corporation-intc-navigating-challenges-211658656.html
U.S. to impose 25% tariff on Canadian potash imports starting February 1
U.S. President Donald Trump plans to impose a 25% tariff on Canadian imports starting February 1. This decision has led to a decline in shares of potash producers Nutrien and Mosaic.
The U.S. relies heavily on Canadian potash, importing nearly 90% of its needs. The tariff could raise prices for U.S. farmers, potentially leading to reduced potash usage.
Despite the tariff's impact on U.S. farmers, the U.S. only represents 15% of global potash demand. Demand is increasing in larger markets like Brazil and China, which may lessen the overall effect on global potash prices.
ElevenLabs integrates voice technology with Chinese chatbot DeepSeek for natural conversations
ElevenLabs has integrated its AI voice technology with the Chinese chatbot DeepSeek, allowing users to engage in natural, spoken conversations. This marks a shift from text-only interactions to voice-enabled dialogue, enhancing user experience.
The integration uses DeepSeek's R1 model, known for its strong reasoning skills, particularly in math and coding. The new voice feature makes the chatbot more accessible, addressing previous limitations in user interaction.
The voice-enabled agent, named "DeepSeeker," can assist in various applications, including tutoring in mathematics. This development highlights the growing trend of combining advanced AI reasoning with natural language capabilities for improved user engagement.
Trump signs orders to reduce electric vehicle support but experts see continued growth
President Trump signed executive orders aimed at reducing support for electric vehicles (EVs), claiming to eliminate an "EV mandate." However, experts note that there is no federal mandate and many changes would require Congress.
EV sales in the U.S. grew to 1.3 million in 2024, and forecasts suggest continued growth despite potential policy shifts. Experts believe the executive orders create confusion but will not significantly impact consumer access to EV tax credits in the near term.
Future EV tax credits may face changes, but experts expect the overall momentum in the EV market to continue. Even without government incentives, EVs are projected to become more affordable over time.