Stocks Are Breakdancing, But the Market's in Zen Mode
The stock market looks steady on the surface, but don’t be fooled
TABLE OF CONTENTS
Capital Markets Insights | 03 Feb - 07 Feb
Get stock analysis and detailed markets insights to make confident investment decisions
Hey Trader,
Too busy enjoying life to play detective with the stock market? Don't worry, we've got you covered like a warm blanket on movie night!
US Markets
The US markets experienced significant volatility after President Donald Trump announced new tariffs on imports from Canada, Mexico, and China. The news prompted investors to take a cautious stance, leading to initial gains in the US Dollar. Market signals remained mixed throughout the week;for instance, US job growth fell short of estimates, potentially affecting market sentiment.
The S&P 500 experienced a weekly gain of +2.7%, showing some resilience amidst the tariff news.
The US markets experienced significant volatility after President Donald Trump announced new tariffs on imports from Canada, Mexico, and China. The news prompted investors to take a cautious stance, leading to initial gains in the US Dollar. Market signals remained mixed throughout the week;for instance, US job growth fell short of estimates, potentially affecting market sentiment.
The S&P 500 experienced a weekly gain of +2.7%, showing some resilience amidst the tariff news.
Gold
Gold prices hit new record highs, breaking above $2,800 an ounce, driven by safe-haven buying as trade war anxieties escalated. This surge was particularly pronounced following Trump's tariff announcements, which spurred demand for gold as an inflation hedge and safe-haven asset.
Gold prices hit new record highs, breaking above $2,800 an ounce, driven by safe-haven buying as trade war anxieties escalated. This surge was particularly pronounced following Trump's tariff announcements, which spurred demand for gold as an inflation hedge and safe-haven asset.
Oil
There was less direct news on oil this week, but the broader commodity market was influenced by global economic uncertainties. Crude oil prices saw back-to-back falls over three weeks, with the price dropping to levels not seen since December of the previous year.
There was less direct news on oil this week, but the broader commodity market was influenced by global economic uncertainties. Crude oil prices saw back-to-back falls over three weeks, with the price dropping to levels not seen since December of the previous year.
Crypto
The crypto market saw considerable turmoil. Bitcoin, in particular, faced a sharp decline, dropping to a three-week low due to the broader market's reaction to trade war fears. The market cap of Bitcoin fell to $1.918 trillion, with its dominance at 61.09%. Overall, the crypto market lost over $400 billion in value, sparking panic among investors.
The crypto market saw considerable turmoil. Bitcoin, in particular, faced a sharp decline, dropping to a three-week low due to the broader market's reaction to trade war fears. The market cap of Bitcoin fell to $1.918 trillion, with its dominance at 61.09%. Overall, the crypto market lost over $400 billion in value, sparking panic among investors.
Forex
The US Dollar (USD) dominated this week, rallying as investors sought safety amid the tariff announcements. The DXY (U.S. Dollar Index) reached 108.5, pushing down various currency pairs. This strength in the dollar was a direct response to the trade policy changes and the perceived stability of the U.S. economy relative to global uncertainties.
The US Dollar (USD) dominated this week, rallying as investors sought safety amid the tariff announcements. The DXY (U.S. Dollar Index) reached 108.5, pushing down various currency pairs. This strength in the dollar was a direct response to the trade policy changes and the perceived stability of the U.S. economy relative to global uncertainties.
Economic Calendar
Significant events included:
The Federal Reserve left interest rates unchanged, which might have contributed to market stability despite the tariff news.
The European Central Bank (ECB) cut rates by 25 basis points to 2.75%, potentially signaling a divergence in monetary policy that could affect currency markets.
U.S. economic data showed December PCE inflation at 2.6%, which could influence expectations around inflation and Fed policy moving forward.
Various economic indicators like job openings and factory orders in the U.S. were below estimates, suggesting economic activity might be slowing.
Significant events included:
The Federal Reserve left interest rates unchanged, which might have contributed to market stability despite the tariff news.
The European Central Bank (ECB) cut rates by 25 basis points to 2.75%, potentially signaling a divergence in monetary policy that could affect currency markets.
U.S. economic data showed December PCE inflation at 2.6%, which could influence expectations around inflation and Fed policy moving forward.
Various economic indicators like job openings and factory orders in the U.S. were below estimates, suggesting economic activity might be slowing.
This Week's Top Gainer in US Markets (excluding small caps under $2B market cap)
- Company: BBAI (BigBearai Holdings Inc)
- Gain: 102.59%
BigBear.ai is making waves as its stock jumped 102.59% this week. This surge follows a major shift under President Trump, whose deregulation efforts have cleared the way for AI innovation across the U.S.
Leading the charge, BigBear has welcomed former Trump-era official Kevin McAleenan as CEO. His political expertise and government ties position the company for lucrative federal contracts, setting the stage for unprecedented growth.
This Week's Top Loser
- Company: FMC (FMC Corporation)
- Loss: -38.08%
FMC Corporation (NYSE: FMC) saw its stock plunge 33% on Feb. 5, erasing over $2 billion in shareholder value after a disappointing earnings report and weak outlook contradicted prior executive assurances. Investors reacted to a 5% year-over-year revenue decline in Q4 2024, a projected 16% drop in Q1 2025 revenues, and a 28% shrinkage in Q1 EBITDA. Full-year 2025 forecasts were equally bleak, with flat revenues and just 1% EBITDA growth. The company blamed ongoing customer inventory destocking, conflicting with earlier claims that channel inventories were stabilizing, leaving investors frustrated and analysts questioning FMC’s credibility.
Want to Make Informed Investment Decisions?
Let's be real, understanding why the market does the cha-cha is key to not getting left behind in the investing dance-off. But how do you spot the market's next superstar or the one-hit wonder before they hit the stage?
Enter Investorean, your backstage pass to market mastery!
At Investorean, we've got the secret sauce to help you strut your stuff in the investing world:
- Hedge Fund Tracker : Ever wondered what the top hedge fund managers are buying, selling, and betting big on? Now you don’t have to guess.
- Pro Filters, Pro Moves: With our Investorean Pro filters, you're like a treasure hunter with a map. These proprietary financial ratios are your X marks the spot to find those market gems everyone else is missing.
- Market News DJ: We spin the latest tracks on market trends and industry news, keeping you in the loop so your investments can keep grooving to the beat.
- Portfolio Monitor: You can also create and customise your portfolio page with many tools.
And now, for the grand finale of this newsletter, here's one of our favorite quotes to inspire your next investment boogie:
‘’Bulls make money, bears make money, and pigs get slaughtered’’
Stay sharp, Investorean! Keep an eye on your investments and take care of that cash.
For more market insights like this, visit investorean.com.
And hey, don't forget to follow us on Reddit, X and TikTok where you'll find playlists packed with news, entertainment, and educational content…
May Investorean Be With You
Related Posts
Capital Markets Insights | 10 Feb -14 Feb
Get stock analysis and detailed markets insights to make confident investment decisions