Market News 02 feb
Weekly Summary and Key Events
Over the past week, stock indices showed mixed performance. The Dow Jones Industrial Average gained 0.3%, while the S&P 500 declined by 1.0%, the Nasdaq Composite lost 1.6%, and the Russell 2000 fell 0.9%. The week started with a sharp decline in stock prices following reports about the Chinese artificial intelligence platform DeepSeek, which raised concerns among investors about the competitiveness of Western AI companies.
Impact of DeepSeek News on the Tech Sector
NVIDIA (NVDA) experienced its largest single-day market capitalization drop in history, losing 17% on Monday, with a total weekly decline of 15.8%. This affected the entire semiconductor sector, raising concerns about future investments in AI infrastructure.
Financial Reports of Major Companies
Last week was eventful in terms of corporate earnings, with approximately 40% of S&P 500 companies reporting their quarterly results. Key performers included:
Apple (AAPL) grew by 5.9%;
Microsoft (MSFT) fell by 6.5%;
Meta Platforms (META) gained 6.4%;
Tesla (TSLA) declined by 0.5%.
Other notable movements:
IBM (+13.8%)
Starbucks (+9.0%)
Boeing (+0.3%)
General Motors (-8.3%)
Lockheed Martin (-6.8%)
Fed Decision and Macroeconomic Indicators
On Wednesday, the Federal Open Market Committee (FOMC) left the interest rate unchanged (4.25–4.50%), in line with market expectations. The statement did not explicitly mention progress in fighting inflation, leading to cautious investor sentiment.
Key economic data for the week:
Initial jobless claims stood at 207K
Personal spending in Q4 increased by 4.2%
Core PCE price index remained at 2.8%
Tariffs and Market Reaction
On Friday, the U.S. administration confirmed new tariffs:
25% for Canada and Mexico
10% for China
These restrictions led to market sell-offs. Meanwhile, the 10-year Treasury yield fell by six basis points (4.57%), while the 2-year yield decreased by three basis points (4.24%).
Daily Market Recap
Monday: Major indices were under pressure due to concerns about Chinese AI DeepSeek. Dow Jones gained 0.7%, despite a sharp decline in the tech sector.
Tuesday: Markets rebounded, S&P 500 +0.9%, Nasdaq Composite +2.0%. Semiconductor companies, including NVIDIA, led the recovery.
Wednesday: The market remained stable ahead of the Fed's decision, with no major moves after the announcement.
Thursday: A positive day for the market, S&P 500 +0.5%, Russell 2000 +1.1%. Strong earnings from IBM, Meta, and Tesla outweighed negative news from Microsoft.
Friday: Markets opened positively but turned negative after confirmation of trade tariffs. Bond yields increased.
Top News of the Day
Chevron (CVX) lost 4.6% due to quarterly losses linked to new tariffs.
Apple (AAPL) is shutting down its augmented reality glasses project N107, reconsidering its development strategy.
Bitcoin (BTC-USD) remained volatile but held above $100K.
Palantir Technologies (PLTR) is set to release its earnings report, with investors anticipating new growth insights.
Walgreens Boots (WBA) suspended its quarterly dividend for the first time in 92 years. Sycamore Partners is considering acquiring the company.
Petrobras (PBR) raised diesel prices for the first time in a year, adjusting to market conditions.
Occidental Petroleum (OXY) received a downgrade from Goldman Sachs due to its focus on debt reduction.
The week was filled with corporate earnings reports, macroeconomic events, and significant shifts in the AI sector. The primary concern for investors remains the long-term impact of China’s DeepSeek on NVIDIA and other U.S. tech giants.