Most Important News

1. Trump Jokes About Suing Fed Chair Nominee if Rates Aren't Cut;
2. Gold and Silver Prices Recover After Initial Drop;
3. Oracle Surges Pre-Market Amid $50 Billion Refinancing Plan;
4. NVIDIA Considers Incremental Investment in OpenAI;

Stock futures were mixed on Monday as Wall Street began a new month of trading, weighed down by losses in bitcoin and Nvidia.

As of 08:51 EST (or 4:51 PM in Riyadh), Dow Jones Industrial Average futures rose 3 points, or 0.01%. S&P 500 futures dipped 0.39%, while Nasdaq-100 futures shed 0.64%.

NVIDIA Corporation(NVDA.US) faced AI concerns, with its OpenAI investment plan reportedly stalled. Over 100 S&P 500 firms, including Amazon.com, Inc.(AMZN.US), report this week.

As of 04:52 PM Riyadh Time, top pre-market movements are as follows:

Trump Jokes About Suing Fed Chair Nominee if Rates Aren't Cut

After nominating former Fed governor Kevin Warsh as the next Fed Chair, President Trump jokingly said he might sue Warsh if he doesn't cut interest rates. Trump expressed his desire for rate cuts and praised Warsh as a qualified nominee likely to pass the confirmation process easily. This remark comes amid concerns over the Fed's independence.

Market Concerns Over Warsh's QT Approach; Focus May Shift to SOMA

The nomination of Kevin Warsh as Fed Chair has sparked worries about balance sheet reduction. Known for his hawkish stance, Warsh is unlikely to fully restart QT, according to Citigroup analysts. Instead, attention may turn to adjustments in the Fed's SOMA portfolio's weighted average maturity (WAM). By shifting to short-term Treasuries, the Fed could reduce its balance sheet without market disruption, potentially freeing up $420 billion for reinvestment between late 2026 and 2027. Investors might find the 3- to 5-year maturity range a safer option, as yield curves steepen.

Week's Top Economic Highlights

Last week, Powell delivered a stark message, silver saw a historic rally, and Trump's Fed chair pick made headlines, among other key economic events. Read in detail>>

Cryptocurrency Market Volatility Continues

Over the weekend, cryptocurrencies experienced significant declines. On Monday, BTC fell below $75,000 before recovering to over $77,000. Similarly, ETH dropped below $2,200 but later rebounded above $2,300. The market showed signs of recovery after the initial sharp falls, reflecting ongoing volatility in the sector.

Gold and Silver Prices Recover After Initial Drop

Gold briefly fell to the $4,400 mark before rebounding above $4,700, narrowing its pre-market loss to 2%. Meanwhile, Silver dropped to $71.36 but later climbed above $83. Precious metals showed signs of recovery after sharp declines.

Tesla's January Registrations: Norway Down, Sweden & Denmark Up

Tesla Motors, Inc.(TSLA.US) saw an 88% YoY drop in registrations in Norway in January, while Sweden and Denmark saw increases of 26.4% and 2.7%, respectively. Read in detail>>

Oracle's Stock Drops Post-Funding Plan

Oracle Corporation(ORCL.US) stock declined on Monday after announcing a $50 billion financing plan for 2026 to expand its Oracle Cloud Infrastructure business. Read in detail>>

Cathie Wood's Latest Portfolio Moves

Cathie Wood increased stakes in Joby Aviation(JOBY.US), CRISPR Therapeutics AG(CRSP.US), and reduced positions in Illumina, Inc.(ILMN.US), Veracyte, Inc.(VCYT.US) last week. 

Rare Earth Stocks Surge on Strategic Reserve Plan

Shares of rare earth companies climbed in pre-market trading, with Critical Metals Corp.(CRML.US) rising nearly 7%, USA Rare Earth, Inc. Class A(USAR.US) up 6%, and MP Materials Corp Class A(MP.US) nearing a 5% increase. The boost follows plans by Trump to establish a $12 billion strategic reserve for critical minerals. Dubbed the "Project Vault," it involves $1.67 billion in private capital and $10 billion in loans from the US Export-Import Bank to secure essential resources.

Crypto-Related Stocks Slide Pre-Market

Crypto-focused stocks saw broad declines pre-market. Strategy(MSTR.US) fell nearly 7%, $BMNR dropped close to 10%, and Cleanspark, Inc.(CLSK.US) slid over 5%. The sector’s weakness aligns with recent cryptocurrency market volatility, impacting investor sentiment.

Energy Stocks Decline Pre-Market Amid Falling Oil Prices

US energy stocks dropped pre-market due to declining oil prices. APA Corporation(APA.US), EQT Corporation(EQT.US), and Range Resources Corporation(RRC.US) fell over 3%, while Occidental Petroleum Corporation(OXY.US) and Devon Energy Corporation(DVN.US) declined more than 2%. Exxon Mobil Corporation(XOM.US) and Chevron Corporation(CVX.US) saw decreases of over 1%. 

TSMC 2nm Capacity in High Demand as Tech Giants Compete

Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR(TSM.US) faces surging demand for its 2nm process, with Apple Inc.(AAPL.US) and QUALCOMM Incorporated(QCOM.US) securing the first batch of capacity. NVIDIA Corporation(NVDA.US) and Advanced Micro Devices, Inc.(AMD.US) are targeting subsequent nodes, intensifying competition amid rising AI and mobile chip demand. While TSMC plans to double advanced packaging capacity by 2026, challenges like yield rates and new technologies, such as backside power delivery, may keep supply tight until 2027.

Tesla to Unveil Third-Gen Optimus Robot, Shifts Focus from Model S/X

Tesla Motors, Inc.(TSLA.US) plans to introduce its third-generation Optimus humanoid robot in Q1 2026, targeting an annual production of one million units. Elon Musk revealed that production of Model S and Model X will cease in Q2 2026, as Tesla repurposes Fremont factory lines for Optimus.

Oracle Surges Pre-Market Amid $50 Billion Refinancing Plan

Oracle Corporation(ORCL.US) announced a refinancing plan of up to $50 billion to address cash flow issues and Wall Street warnings. Facing a halved stock price, soaring CDS, and halted loans from Bank of America, the move is crucial to avoid a liquidity crisis. Fitch rated Oracle's senior notes "BBB" with a stable outlook. Shares rose over 5% pre-market after initially dropping more than 4%.

NVIDIA Considers Incremental Investment in OpenAI

NVIDIA Corporation(NVDA.US) CEO Jensen Huang clarified that the proposed investment of up to $100 billion in OpenAI is not a commitment. He stated the company would evaluate financing "round by round." Last September, NVIDIA expressed plans to support OpenAI's data center and AI infrastructure projects, aiming for at least 10 gigawatts of capacity, using NVIDIA's advanced chips for AI model development.

CoreWeave Shares Narrow Losses After Executive Stock Sales

CoreWeave, Inc. Class A(CRWV.US) saw pre-market losses of over 3%, later narrowing to under 1%. Several executives and directors recently sold shares, including CEO Michael N Intrator, who sold 82,456 shares for approximately $8.747 million on January 28. Additionally, NVIDIA Corporation(NVDA.US) CEO Jensen Huang's remarks about the non-committal nature of a proposed $100 billion investment in OpenAI have sparked market concerns over future AI capital allocations.

Amazon Dips Pre-Market on SaaS Valuation Concerns

Amazon.com, Inc.(AMZN.US) fell nearly 1% pre-market as Bank of America lowered its price target from $303 to $286 due to SaaS valuation compression. Despite this, the "buy" rating was reiterated, citing accelerated AWS growth, resilient retail operations, and improved AI market sentiment. Ahead of the Q4 earnings release on February 5, BofA anticipates cautious guidance, with Q1 revenue projected between $173-178 billion and operating profit of $18.5-22.5 billion.

Microsoft Loses $381 Billion in Market Value Amid AI Investment Concerns

Microsoft Corporation(MSFT.US) shed $381 billion in market value over two days following its earnings report, which revealed slowing Azure growth and over $100 billion in projected 2024 capital expenditures. The stock suffered its worst week since March 2020. GuideStone Funds portfolio manager Josh Chastant noted that tech valuations now hinge on AI investments yielding tangible returns, prompting some investors to scale back tech sector bets.

Bitcoin Drops Below Strategy's Cost Line; Pre-Market Shares Fall Over 7%

Bitcoin's recent decline has pressured the largest corporate cryptocurrency reserve. The price fell below the average cost line of Strategy(MSTR.US) for the first time since 2023, indicating market fatigue. This drop challenges the once-popular strategy of issuing stock to acquire Bitcoin amid skeptical market sentiment. Strategy's current Bitcoin holding cost is $76,037, long considered a psychological support level. With Bitcoin breaking below $76,000, Strategy's stock has fallen nearly 70% from its peak, losing its premium advantage as capital markets tighten.

Disney's Q1 Earnings Exceed Expectations, Driven by Theme Parks; Entertainment Faces Challenges

Walt Disney Company(DIS.US) reported record $10 billion revenue from its theme parks and cruises in Q1, surpassing sales and profit expectations. Led by Josh D'Amaro, this segment's profit rose 6% to $3.3 billion, positioning him as a potential successor to outgoing CEO Bob Iger. Increased visitor numbers, spending, and new cruise additions boosted results. However, the entertainment division's profit fell over one-third to $1.1 billion due to reduced political ad revenue in TV and streaming, and marketing costs for "Avatar: The Ashes." The sports division saw a 23% profit drop to $191 million, impacted by higher broadcasting fees for NBA and college sports.

SanDisk Pre-Market Gains Over 3% as Citi Raises Price Target to $750

Sandisk Corporation(SNDK.US) extended its pre-market rally, rising over 3%, after Citigroup raised its price target from $490 to $750.