ADDX Go Market Morning Wrap - 28th Jan

Stock Market

European and American technology stocks plummeted, with the Nasdaq closing down more than 3%, and the S&P 500 index opening more than 2% lower. The "fear index" VIX rose more than 51% in a short period of time to a five-week intraday high. Driven by risk aversion, the US dollar and US bond yields fell sharply to their lowest level in more than five weeks. Traders also raised their bets on the Fed's interest rate cut, fully digesting a 50 basis point interest rate cut this year.

DeepSeek triggered concerns about the bursting of the valuation bubble of AI stocks. $NVDA fell nearly 17%, and the chip index fell more than 9%, both of which were the worst performances since March 2020. $AVGO fell more than 17%, $TSM fell more than 13%, $AMD and $ASML fell about 6%. Among the technology giants investing in AI, $MSFT fell 4.6% and then halved its losses, $AMZN and $META turned to rise, and $AAPL rose more than 3%.

Key Events

1. DeepSeek made history, surpassing ChatGPT to top the AppStore in China and the United States, and took the top spot in Apple's free app rankings in more than 50 countries including the United States; DeepSeek released a new open source AI model with better image generation capabilities than DALL-E 3
2. $META urgently formed several teams to study and replicate DeepSeek's data and technology
3. Telecom operator $T once rose by more than 7%, the largest intraday gain since May 2021, and closed up more than 6%, the best performance since October last year. The fourth-quarter report exceeded expectations across the board, and the capital expenditure outlook for 2025 slightly exceeded market expectations.
4. Nuclear power stocks plummeted across the board, with Altman's $OKLO falling nearly 26%, $SMR NuScale falling more than 27%, $VST falling more than 28%, and $CEG Constellation Energy falling nearly 21%. Among other power companies, $GEV Ge Vernova fell more than 21% and $NRG Nrg Energy fell more than 13%
5. U.S. new home sales jumped at the end of 2024, achieving the second consecutive year of growth. In December, new home sales increased by 3.6% month-on-month, which was lower than the previous value of 5.9%, but higher than the expected 2.4%. New home sales were 698,000 units, higher than expectations and the previous value.
   
6. Among the popular Chinese concept stocks, $DADA rose nearly 28%. The company received a premium acquisition offer from $JD ,a 42% premium over last Friday's closing price

Forex

The US dollar index once fell below the 107 mark to the lowest level in nearly six weeks. Investors flocked to the Japanese yen and Swiss franc for safe havens.

The Japanese yen once rose above 154 to the highest level in nearly six weeks.

The offshore RMB fell below 7.27 yuan and then turned up and rose above 7.24 yuan.

Key Events

1. The dollar index continued to slide lower on Monday as the White House suspended tariffs on Colombia, removing some of the risk premium.

Cryptocurrency

Affected by the sell-off of technology stocks, $BTC , the largest cryptocurrency by market value, once fell 5% and fell below the integer of $100,000. It once fell below $98,000 to a ten-day low. The cryptocurrency market, measured by the CoinDesk 20 index, fell 7%.

The main contract of CME Ethereum futures DCR was $3,168.50, down 4.92% from last Friday.

Key Events

1. $BLK applied to amend its $IBIT BTC ETF’s filing to allow for “physical settlement,” meaning investors can choose to receive ETF proceeds in BTC rather than U.S. dollar fiat, suggesting that Wall Street is preparing to support BTC settlement.
   

Market Events and Most Anticipated Earnings Releases