Anti-Clickbait News Summaries for January 26, 2025
Meta explores $100 billion opportunity with AI tools for businesses
Hi, it’s Jack and The Signals.Doctor team with your daily news summaries 😇
The Markets:
Futures Highlights
Natural gas surges by nearly 20%, while major equity indices are in the red. Crude oil is flat, and gold edges higher.
⚪ Crude Oil: 74.60 (‑0.02 | ‑0.03%)
🟢 Natural Gas: 4.0100 (+0.6420 | +19.06%)
🟢 Gold: 2777.40 (+12.40 | +0.45%)
🔴 Dow: 44589.00 (‑160.00 | ‑0.36%)
🔴 S&P 500: 6132.00 (‑20.00 | ‑0.33%)
🔴 Nasdaq 100: 21907.75 (‑130.50 | ‑0.59%)
🔴 Russell 2000: 2320.40 (‑5.90 | ‑0.25%)
Forex & Bonds
Currencies mostly strengthen against the dollar, while bond yields slip across maturities.
🟢 EUR/USD: 1.0492 (+0.0077 | +0.74%)
⚪ USD/JPY: 155.95 (‑0.09 | ‑0.06%)
🟢 GBP/USD: 1.2478 (+0.0127 | +1.02%)
🟢 BTC/USD: 104968.20 (+374.30 | +0.36%)
🔴 5-Year Treasury: 4.428 (‑0.014 | ‑0.32%)
🔴 10-Year Treasury: 4.626 (‑0.012 | ‑0.26%)
🔴 30-Year Treasury: 4.848 (‑0.021 | ‑0.43%)
Major News (Biggest Winners → Biggest Losers)
Twilio jumps over 20%, while Texas Instruments leads the declines. Several tech giants edge lower, but Novo Nordisk and Meta post notable gains.
🟢 TWLO: +20.13%
🟢 NVO: +8.47%
🟢 META: +1.73%
🟢 GOOG: +1.16%
🟢 GOOGL: +1.13%
🟢 VZ: +0.92%
🟢 TGT: +0.47%
🔴 AMZN: ‑0.24%
🔴 AAPL: ‑0.39%
🔴 MSFT: ‑0.59%
🔴 NFLX: ‑0.74%
🔴 AXP: ‑1.39%
🔴 TSLA: ‑1.41%
🔴 ORCL: ‑1.54%
🔴 NVDA: ‑3.12%
🔴 TXN: ‑7.52%
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The Daily News Podcast
Events Affecting The Markets Today & Beyond
Most Impactful News Summaries
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Today:
Key Events & Factors Influencing the U.S. Stock Market on Sunday, January 26, 2025
(Note: U.S. stock markets are closed on Sundays. However, global developments, policy announcements, or corporate activities may indirectly influence sentiment ahead of Monday's trading.)
1. U.S. Federal Reserve Policy Signals
FOMC Meeting Preparations: The Federal Open Market Committee (FOMC) is scheduled to meet on January 28–29 (Tuesday–Wednesday). While no formal announcements are expected today, analysts are scrutinizing recent economic data (e.g., slowing services PMI and consumer sentiment decline) to gauge the Fed’s stance on interest rates 412.
Market Expectations: Traders are pricing in a pause in rate hikes, with the first potential rate cut projected for June 2025. Fed Chair Powell’s press conference on January 29 will clarify inflation and employment outlooks 1213.
2. Corporate Earnings & Announcements
No Major Earnings Today: No significant U.S. companies are slated to report earnings on January 26. However, Apple, Microsoft, and Meta are among tech giants set to release results later in the week (Jan 27–31), which could drive sector-specific volatility 1214.
AI Infrastructure Developments: President Trump’s $500 billion Stargate AI initiative (announced earlier in the week) continues to buoy tech stocks, particularly chipmakers like NVIDIA and ARM. While no new updates are expected today, investor focus remains on AI-related spending 1014.
3. Geopolitical & Policy Developments
U.S.-China Trade Dynamics: President Trump hinted at potential tariff negotiations with China, including a TikTok joint venture proposal. While no formal announcements are scheduled today, market sentiment remains sensitive to trade policy shifts 1314.
Energy Policy Uncertainty: Trump’s call for OPEC to increase oil production and threats to halt Venezuelan crude imports (pending Feb 1 decision) could impact energy stocks. Oil prices (Brent crude at $79/barrel) are under pressure 1014.
4. Global Market Context
European and Asian Markets: European stocks rallied last week due to eased tariff fears, while Japan’s Nikkei surged 3.85% on hopes of U.S. trade leniency. These trends may indirectly influence U.S. market sentiment 1015.
Indian Union Budget Impact: India’s budget presentation on February 1 (Saturday) will keep Asian markets active. U.S. investors are monitoring FII flows and sector-specific opportunities (e.g., infrastructure stocks) 45.
5. Economic Data & Calendar
No Major Releases Today: Key data such as Q4 GDP (Jan 29) and December PCE inflation (Jan 31) are scheduled later in the week. Today’s focus is on positioning for these releases 1213.
Consumer Sentiment: The University of Michigan’s January consumer sentiment index (71.1 vs. 74.0 in December) reflects rising inflation and unemployment concerns, which may weigh on discretionary stocks 1012.
Most Impactful News Summaries:
Meta explores $100 billion opportunity with AI tools for businesses
Meta Platforms is exploring ways to monetize its artificial intelligence (AI) tools for businesses, potentially unlocking a $100 billion opportunity. The company has been testing AI chatbot tools since September 2023, aiming to help businesses improve customer interactions.
Analysts predict that as Meta expands these services, many of the 200 million businesses on its platform will adopt AI chatbots. This could lead to significant revenue growth, with estimates suggesting an average of 1.6 conversations per user daily by 2030.
Meta's current revenue from its WhatsApp Business Platform is limited, but integrating AI chatbots with its advertising products may enhance profitability. If successful, this could increase Meta's sales significantly, potentially boosting its stock value by 67% by 2030.
Trump's interest in Greenland highlights Arctic geopolitical significance
Donald Trump has expressed ongoing interest in purchasing Greenland, emphasizing its strategic importance in the Arctic. He has not ruled out using military or economic pressure to gain control over the territory, which is part of Denmark.
Greenland's location is increasingly significant as China and Russia expand their influence in the Arctic. Russia has been reopening military bases, while China previously attempted to invest in Greenland's infrastructure.
The region's importance is highlighted by its role in the U.S. ballistic missile warning system and the growth of Arctic shipping routes. Shipping through these routes increased by 37% from 2013 to 2023, presenting economic opportunities.
Source: https://www.cnbc.com/2025/01/26/trump-greenland-arctic-national-security.html
US-China trade tensions remain as negotiations continue over key issues
Donald Trump's presidency has raised concerns about a potential trade war with China. However, he has not imposed significant tariffs or declared a national economic emergency, allowing for some negotiation opportunities between the two countries.
ING reports that cooperation is possible in areas like the fentanyl crisis and the ongoing TikTok situation. The bank notes that the 75-day moratorium on TikTok's ban could be a critical period for U.S.-China relations.
Despite these openings, ING warns that the path to avoiding a trade war is narrow. China may retaliate with export controls or tariffs if pushed, as it seeks to reduce reliance on the U.S. market.
Source: https://finance.yahoo.com/news/path-avoid-us-china-trade-112515730.html
Businesses worldwide prepare for potential disruptions as Trump threatens new tariffs
Donald Trump has threatened to impose new tariffs on imports from countries like China, Mexico, and Canada, aiming to boost the U.S. economy. This has created uncertainty for exporters worldwide, who are preparing for potential disruptions.
Chinese companies, such as Kam Pin Industrial, are particularly concerned as U.S. orders have declined. Trump’s proposed tariffs could make their products less competitive against U.S. manufacturers. Similar fears are echoed in Mexico, where auto industry leaders anticipate significant sales drops if tariffs are enforced.
In Canada, businesses are considering ways to mitigate the impact of tariffs, with many planning to raise prices. A survey indicated that 65% of small businesses may need to increase costs to cope with potential trade levies, raising concerns about the economic impact.
Source: https://www.theguardian.com/business/2025/jan/26/trump-tariffs-businesses-global-worldwide
AI datacenter emissions may be significantly underestimated due to lack of transparency from major companies
Recent reports indicate that the environmental impact of AI data centers is significantly underestimated due to a lack of transparency from major companies like Amazon Web Services. They do not provide specific emissions data for their facilities, making it difficult to assess their greenhouse gas output.
An analysis found that emissions from AI leaders, including Microsoft and Google, are 662% higher than reported. These companies use renewable energy certificates to claim lower emissions, but verification of these offsets is often lacking.
In the European Union, new regulations may push companies to disclose more detailed emissions data. However, similar efforts in the U.S. have faced legal challenges, delaying standardized reporting requirements for publicly traded companies.
Source: https://futurism.com/the-byte/not-being-told-datacenter-emissions
US plans to withdraw from World Health Organization, reshaping global health leadership
The United States plans to withdraw from the World Health Organization (WHO), marking a significant shift in global health leadership. This decision follows criticisms of the WHO's handling of the COVID-19 pandemic and aims to reassess U.S. international aid.
Previously, the U.S. was a major contributor to the WHO, providing $481 million in 2023. The withdrawal could reduce funding for critical health programs, particularly in lower-income countries, and diminish U.S. influence in global health policy discussions.
The U.S. exit may allow other countries, like China, to take a more prominent role in shaping global health initiatives. This change could lead to a shift in priorities and funding within the WHO, impacting health responses worldwide.
Source: https://www.courant.com/2025/01/26/what-a-us-exit-from-the-who-means-for-global-health/
Silicon Valley tech leaders shift from indifference to political influence
Silicon Valley's tech leaders have shifted from political indifference to significant influence, exemplified by their prominent presence at Trump's inauguration. This marks a stark change from the past, when tech entrepreneurs were largely uninvolved in politics.
Historically, tech companies focused on innovation rather than political engagement. However, as their interests became intertwined with political issues, they began investing heavily in lobbying and supporting candidates to protect their business interests.
Now, tech giants like Amazon and Meta are deeply involved in politics, contributing millions to campaigns. This increased political engagement reflects their growing power and the realization that political decisions directly impact their industries.
Cathie Wood highlights software as key AI opportunity for investors
Cathie Wood, founder of Ark Investment Management, predicts software companies will be the next major opportunity in artificial intelligence. She believes these firms could generate significant revenue from chip investments, particularly from suppliers like Nvidia.
Ark's ETFs, the Ark Innovation ETF and the Ark Autonomous Technology and Robotics ETF, focus on AI software stocks. Over the past year, they have returned 34% and 57%, respectively, despite their history of volatility.
The Ark Innovation ETF invests in various disruptive technologies, with Tesla as a key holding. The Ark Autonomous Technology and Robotics ETF focuses on AI and robotics, also featuring Tesla prominently. Both ETFs have an expense ratio of 0.75%.
Declining funding and response rates threaten reliability of US economic data
Federal economic data is facing increased risks due to declining funding and response rates. Critics warn that this could undermine the reliability of data that policymakers and businesses rely on for decision-making, especially under the Trump administration.
Response rates for surveys, a key method for gathering economic data, have dropped significantly. This decline raises concerns about the accuracy of estimates, leading to greater volatility and criticism of the data's legitimacy.
Efforts to modernize data collection are ongoing, but funding remains a challenge. Some proposals suggest consolidating statistical agencies to improve efficiency, but fears persist that cuts could hinder the collection of vital information, particularly for marginalized communities.
Source: https://www.cnn.com/2025/01/26/economy/us-economic-data-trump/index.html
Xanadu unveils world's first scalable photonic quantum computer prototype
Xanadu, a Canadian quantum computing company, has unveiled Aurora, the world's first scalable and networked photonic quantum computer prototype. This 12-qubit system uses 35 photonic chips and operates at room temperature, marking a significant advancement in quantum computing technology.
Aurora can perform fault-tolerant quantum operations and has demonstrated the ability to create a large entangled state with 86.4 billion modes. This capability suggests potential for complex computations, a key goal in quantum computing.
Despite its advancements, Aurora faces challenges, such as high signal loss rates when scaled to larger sizes. Experts note that further development is needed before it can function like a conventional data center.
Source: https://interestingengineering.com/innovation/worlds-first-scalable-photonic-quantum-computer
ASML poised to benefit from DeepSeek's advancements in AI model development
ASML is expected to benefit from new developments by DeepSeek, an open-source organization that is reducing the costs of AI model development. This shift could enhance ASML's position in the AI infrastructure market.
Despite the lower costs for developing AI models, the infrastructure needed to run these models remains expensive. This situation presents a challenge for companies looking to implement AI solutions effectively.
The article does not provide specific predictions or recommendations regarding ASML's stock performance or investment strategies. It focuses on the impact of DeepSeek's advancements on the AI landscape.
Trump's second term reshapes global alliances as leaders reassess ties
President Donald Trump’s second term has begun with significant shifts in U.S. foreign policy, reversing many Biden administration initiatives. Global leaders are reassessing their relationships with the U.S. as Trump re-establishes his influence.
Key allies like Italy’s Prime Minister Giorgia Meloni and Hungary’s Prime Minister Viktor Orban are strengthening ties with Trump. Meanwhile, leaders such as India’s Narendra Modi and Argentina’s Javier Milei are seeking new trade agreements with the U.S.
In contrast, European leaders like France’s Emmanuel Macron and Germany’s Olaf Scholz express concerns about Trump’s approach. Canada faces potential trade tensions as Prime Minister Justin Trudeau resigns amid uncertainty over future relations with the U.S.
Source: https://www.foxnews.com/world/trumps-world-leaders-club-whos-whos-looking-salvage-ties
Trump outlines four-year plan to restore trust in government at Capitol speech
President Donald Trump outlined his plans for the next four years in a speech at the U.S. Capitol, addressing what he called a “crisis of trust” in government. He criticized the Biden administration and emphasized his commitment to an "America First" agenda.
Trump announced immediate actions, including recognizing only two genders and reversing Biden-era policies on gender identity. He also plans to declare a national emergency at the southern border, reinstating the "Remain in Mexico" policy and sending troops to deter illegal immigration.
Additionally, Trump aims to declare a national energy emergency to boost oil and gas drilling. He promised to end the Green New Deal and revoke electric vehicle mandates, signaling a shift in energy and immigration policies from the previous administration.
Source: https://www.bostonherald.com/2025/01/26/buss-trump-returns-to-make-good-on-promises/
Legal experts criticize Trump administration for errors in executive orders linked to AI use
Legal experts have criticized the Trump administration for poor quality in recent executive orders, suggesting possible use of AI. Errors include repeated bullet points and awkward phrasing, raising concerns about the drafting process.
One order controversially renamed the Gulf of Mexico to the Gulf of America. Critics noted similarities to AI-generated text, prompting questions about the administration's reliance on technology for official documents.
Additionally, the CIA released a report linking COVID-19 to a lab leak, a theory previously considered fringe. The report, which lacks new evidence, reflects ongoing debates about the virus's origins and could influence U.S.-China relations.
Source: https://www.thedailybeast.com/legal-experts-accuse-trump-admin-of-sloppy-ai-use-in-executive-orders/
U.S. farmers face labor crisis as deportation plan threatens workforce
U.S. farmers are facing a labor crisis as the Trump administration threatens to deport millions of undocumented immigrants. This could significantly impact the agricultural workforce, which relies heavily on foreign workers, with over two-thirds of crop workers being foreign-born.
The number of farms in the U.S. has declined by 7% from 2017 to 2022, adding to the challenges farmers face, including climate change and rising costs. Many farmers express concern that reduced labor availability could lead to less domestically grown produce.
While the exact effects of the deportation plan on farm workers remain unclear, farmers are closely monitoring the situation. The United Farm Workers union reports an increase in migrants seeking assistance amid fears of deportation.
Source: https://www.yahoo.com/news/u-farm-workforce-threatened-trumps-012944681.html
Real estate firms pivot to energy development to meet rising data center demand
Real estate companies are shifting focus to energy development as demand for data centers rises. This change comes amid high office vacancy rates and a struggling proptech sector, prompting firms to explore opportunities in energy to support data center growth.
Brendan Wallace of Fifth Wall Ventures highlights the need for real estate firms to invest in renewable energy, particularly solar, to meet the energy demands of data centers. This marks a significant shift from traditional real estate investment strategies.
The industry is adapting to challenges posed by wildfires and insurance issues in California. Companies are now looking to retrofit existing properties and develop new technologies to enhance resilience against natural disasters.
White House negotiates U.S. takeover of TikTok with Oracle and investors
The White House is negotiating a plan for Oracle and U.S. investors to take control of TikTok's operations. This move aims to address concerns over the app's ownership by China's ByteDance.
Under the proposed deal, ByteDance would keep a minority stake in TikTok. However, Oracle would manage the app's algorithm, data collection, and software updates.
This plan marks a significant shift in the U.S. government's approach to TikTok, focusing on U.S. oversight of the app's operations.
Source: https://www.cnbc.com/2025/01/25/white-house-in-talks-oracle-us-investors-tiktok.html
Trump to address Congress for first time on March 4, House speaker announces
U.S. House Speaker Mike Johnson has invited President Donald Trump to address Congress on March 4, 2025. This will be Trump's first address since taking office in January 2025.
Trump's Republican Party holds a narrow majority in the House and a stronger one in the Senate. He plans to use higher tariffs on imports to fund tax cuts.
Some lawmakers may oppose Trump's tariff plan, citing concerns about its reliability and the risks of trade wars.
Source: https://www.yahoo.com/news/trump-invited-address-congress-march-220001598.html
Nvidia benefits as Anthropic plans $2 billion funding round to boost AI capabilities
Nvidia is seeing positive developments as AI start-up Anthropic, known for its Claude AI chatbot, is in talks to raise $2 billion, boosting its valuation to $60 billion. This marks a significant increase from $16 billion last year.
The funding round is expected to benefit Nvidia, as a portion of the investment will likely be used to purchase Nvidia chips for Anthropic's AI models. Despite Anthropic's plans to use Amazon's chips, Nvidia remains a key player in the AI chip market.
Nvidia holds a dominant position in data center GPUs, with a market share of about 95%. The company continues to innovate and is well-positioned to capitalize on the growing interest and investment in AI technologies.
States push forward with AI regulation as California leads the way
In 2024, California enacted 18 new AI laws while vetoing significant legislation. Mark Weatherford predicts that state-level regulation will continue to grow in 2025, with over 400 AI-related bills introduced across the U.S. in the past year.
Weatherford noted that California often leads in tech legislation, influencing other states. He emphasized the need for harmonization of regulations to ease compliance for companies, although he sees little incentive for states to align their laws.
While federal regulation is expected to be less prioritized, Weatherford believes there will be ongoing discussions about AI's impact on privacy and security. He advocates for clear, accessible legislation that addresses both the benefits and risks of AI technology.
Source: https://techcrunch.com/2025/01/25/will-states-lead-the-way-on-ai-regulation/
Inertial confinement advances push nuclear fusion closer to commercial viability
On December 5, 2022, the National Ignition Facility (NIF) achieved a significant milestone by producing 3.15 megajoules of fusion energy, marking the first energy gain from a fusion system. This output has since increased to 5.2 megajoules.
While NIF's experiments focus on improving laser energy and gains, they do not aim for continuous power generation. In contrast, startups like Focused Energy and Xcimer Energy are developing more efficient laser systems for commercial fusion energy, aiming for higher energy gains.
Focused Energy plans to fire lasers at a rate of 10 shots per second, compared to NIF's 400 shots per year. Both companies are targeting pilot plants by the mid-2030s, believing that fusion energy is now closer to commercial viability.
Source: https://interestingengineering.com/energy/why-inertial-confinement-key-to-nuclear-fusion
OpenAI launches autonomous AI agent Operator, raising concerns about AI power
OpenAI has launched its first autonomous AI agent, called Operator. This tool can perform various tasks in a web browser, such as booking restaurant tables or shopping online, acting like a digital assistant.
The development is seen as a step towards achieving artificial general intelligence (AGI). OpenAI aims to create smarter AI systems, but some experts express concerns about the potential risks of autonomous agents.
At the World Economic Forum, AI pioneer Yoshua Bengio warned that these agents could pose significant threats. He advocates for focusing on non-autonomous AI systems to avoid unintended consequences while still advancing technology.
NATO faces pressure to boost defense spending as military threats rise
NATO allies are facing pressure to increase defense spending amid rising military threats. U.S. President Donald Trump proposed a 5 percent GDP target, which was rejected. NATO Secretary-General Mark Rutte suggested a new target of 3.7 percent, with only Poland currently meeting it.
European nations have increased defense budgets since Russia's invasion of Ukraine in 2022, but many face financial constraints. Germany's defense spending is at 2.12 percent of GDP, hindered by a constitutional debt limit. Political instability has stalled plans for significant increases.
France's defense budget remains unchanged due to political challenges, while the UK has a stable defense budget at 2.33 percent of GDP. However, Prime Minister Keir Starmer's government has limited room for increases, focusing on other priority areas.
Source: https://oilprice.com/Energy/Energy-General/NATOs-Defense-Dilemma-Rising-Costs-Reluctant-Nations.html
Big Tech seeks direct power plant connections to meet energy demands
Big Tech companies are seeking direct power connections to power plants to meet their growing energy needs. This approach could bypass the congested electric grid, raising concerns about fairness and availability for other customers.
Amazon Web Services' proposed deal with the Susquehanna nuclear plant is the first of its kind under review by federal regulators. The Federal Energy Regulatory Commission has temporarily blocked the deal, which could provide significant power to AWS, leaving the arrangement uncertain.
Utilities argue that this direct access could undermine the grid and shift costs to regular customers. The outcome of this case may set a precedent for future agreements between data centers and power plants across the country.
Global AI spending projected to reach $337 billion in 2025 as companies invest in technology
Global spending on artificial intelligence (AI) is projected to reach $337 billion in 2025, with a significant portion coming from businesses integrating AI into their operations. This marks a shift from previous years, where cloud and digital service providers dominated AI investments.
Broadcom is emerging as a key player in the AI chip market, focusing on application-specific integrated circuits (ASICs). The company is set to supply custom AI chips to major clients, including Meta and Google, and anticipates substantial growth in its AI revenue, which increased by 220% in the last fiscal year.
Snowflake is also positioned for growth by offering a platform for businesses to consolidate data and build AI applications. The company's AI solutions are gaining traction, with over 3,200 customers using its features. Snowflake expects to see significant earnings growth as it expands its AI offerings in 2025.