ADDX GO Market Morning Wrap - 20th Feb

Stock Market

Key Events

• U.S. President Donald Trump stated that he will announce tariffs on automobiles, semiconductors, chips, pharmaceuticals, and potentially lumber within the next month or sooner.
• Microsoft $MSFT  has introduced its first quantum computing chip, Majorana 1, claiming that humanity is now just "a few years" away from achieving true quantum computing. Analysts suggest that quantum computing may not emerge as a standalone field but will instead enhance Microsoft's other businesses, particularly artificial intelligence (AI). The company also announced Muse, a generative AI tool for creating video game environments, utilizing data from Xbox players and their controllers.
• According to a report by The Information on Wednesday, major investors, including Alibaba , have recently expressed strong interest in DeepSeek’s next stage of growth. DeepSeek has so far not accepted external funding, partly to avoid investor pressure for rapid commercialization. However, as its AI chatbot application surged in popularity in recent weeks, demand for AI chips and servers has skyrocketed to support growing user traffic and model development. Citing sources familiar with the matter, media reports suggest that this has prompted DeepSeek to consider seeking external financing. Neither DeepSeek nor Alibaba have responded to the latest developments.
• During Wednesday's U.S. trading session, Palantir (PLTR.US) saw its stock price drop over 12% following reports that CEO Alex Karp has implemented a new stock trading plan. Additionally, reports indicate that the U.S. Department of Defense has been ordered to prepare for an 8% annual reduction in the defense budget over the next five years.
• Shares of $HIMS , a U.S. health and wellness platform, surged nearly 25% on Wednesday, reaching a record high of $72.98. The company announced the acquisition of Trybe Labs, a provider of at-home self-testing kits that allow customers to collect blood samples for analysis.
• Destiny Tech100, which holds stakes in SpaceX and OpenAI, gained momentum on Wednesday. U.S. media reported that SpaceX has successfully launched a rocket from one country and recovered it in another for the first time in human history.
• HSBC's 2024 revenue remained stable at $65.9 billion, while pre-tax profits increased by $$2 billion to$$32.3 billion. The bank also announced a $2 billion share buyback program.
• Chinese food delivery giants Meituan and JD.com $JD  have begun paying social security for their couriers, potentially reshaping the industry. Analysts note that Meituan's biggest challenge may not be social security costs but JD.com's potential introduction of a zero-commission policy.

Forex

Key Events

• According to Nick Timiraos, often referred to as the "New Fed Whisperer," the January FOMC meeting minutes indicate that Federal Reserve officials believe it may be appropriate to pause or slow balance sheet reduction until the debt ceiling issue is resolved. The minutes also suggest that the Fed is not inclined to cut interest rates in the near term, with officials generally satisfied with their decision to keep rates unchanged. Bloomberg analysts highlight that discussions on further slowing or even pausing quantitative tightening (QT) could be the most noteworthy takeaway.

Cryptocurrency

Key Events

• President Donald Trump has signed an executive order aimed at securing U.S. leadership in artificial intelligence, while also ending the previous administration's crackdown on Bitcoin and cryptocurrencies, marking the beginning of a new era for digital assets.
• Pi Network, a mobile-first cryptocurrency project, is set to transition to its open mainnet on February 20, 2025. This marks a major milestone in its development, moving from an enclosed system to full external connectivity.

Market Events and Most Anticipated Earnings Releases