ADDX GO Market Morning Wrap - 22nd Jan

Stock Market

January 21 was the first trading session following Donald Trump’s return to the White House, with U.S. stock indices posting solid gains. Investor sentiment was buoyed by perceptions of a softened stance on Trump’s trade policies, spurring optimism.

Key Events

Stargate: A $500 Billion AI Investment Initiative
President Trump unveiled a groundbreaking AI infrastructure investment plan, announcing a joint venture between OpenAI, SoftBank, and Oracle, named Stargate. The initiative aims to invest $500 billion over four years, starting with a data center in Texas and expanding nationwide. While additional investors are expected to join, their identities remain undisclosed. Oracle shares surged 7.17% at the close, with an additional 3% gain in after-hours trading.
Energy Policy Promises
In his inaugural address, Trump pledged to slash energy prices, refill the Strategic Petroleum Reserve (SPR), and lift restrictions on liquefied natural gas (LNG) exports, positioning the U.S. as a global energy supplier. He reiterated his campaign promise to reduce energy costs by 50%.
TikTok Ban Temporarily Halted
On January 20, Trump signed an executive order delaying the enforcement of the "sell-or-ban" policy for TikTok by 75 days.
Musk’s DOGE Department Begins Operations
The Department of Government Efficiency (DOGE), led by Elon Musk, officially commenced operations on January 21, with its first action being the removal of the Chief Diversity Officer Executive Committee’s website.
Netflix Earnings Beat Expectations
Streaming giant Netflix reported a doubling of Q4 net profits to $1.87 billion, with subscriber growth far exceeding forecasts. The company also raised its 2025 outlook, sending shares up over 14% in after-hours trading.
Tempus AI Launches New Health App
Biotech and healthcare technology firm Tempus AI surged over 35% after announcing its AI-powered personal health app, Olivia. Public records revealed that former House Speaker Nancy Pelosi purchased 50 call options for Tempus AI on January 14.

Forex

Uncertainty surrounding Trump’s tariff policies pushed investors toward safe-haven assets, with spot gold climbing 1.3% to close above $2,740, its highest level since November 6, 2024. The U.S. dollar index ended nearly flat, failing to recover Monday’s 1.2% decline. Mexican peso and Canadian dollar suffered losses amid tariff concerns, with the latter hitting a five-year low of $0.689.

Key Events

Trump’s Tariff Threats
President Trump announced plans to impose a 25% tariff on all imports from Mexico and Canada starting February 1.
Fed Policy Outlook
Wall Street veteran Yardeni suggested the Federal Reserve is unlikely to cut interest rates further in the near term.

Cryptocurrency

Bitcoin rallied 3.21% to $107,000, leading gains in the cryptocurrency market.

Key Events

MicroStrategy Expands Bitcoin Holdings
Between January 13 and 20, MicroStrategy purchased 11,000 bitcoins, bringing its total holdings to approximately 461,000 bitcoins.
Trump’s Second Term Fuels Crypto Optimism
Despite market speculation that “Trump 2.0” would act as a major catalyst for cryptocurrency, Trump’s lack of remarks on the sector during his inaugural speech tempered excitement.

Market Events and Most Anticipated Earnings Releases

$NFLX $MSTR $TEM