ADDX GO Market Morning Wrap - 27th Feb

Stock Market

Key Events

• On February 26, U.S. President Donald Trump held his first cabinet meeting of his second term, stating that most tariffs will remain in place. Starting April 2, the U.S. will impose a 25% tariff on goods imported from Mexico and non-energy products from Canada. Additionally, a 25% tariff on European Union imports will be announced "soon." Trump also mentioned plans for cooperation with Ukraine in rare earth minerals and aims to reclaim the $350 billion allocated to Ukraine through a mineral agreement. Meanwhile, Elon Musk noted that the primary objective of the Government Efficiency Department is to address the massive fiscal deficit, with a target of reducing the deficit by $1 trillion in the 2026 fiscal year.
• As AI technology advances, humanoid robots are transitioning from science fiction to reality. A recent research report from Deutsche Bank highlights the significant potential of this sector, projecting large-scale production and widespread adoption in the next decade. Companies like Tesla and Figure are at the forefront of this technological revolution. The market is expected to reach $75 billion by 2035 and $1 trillion by 2050, with global sales potentially exceeding 70 million units.
• AI chip giant Nvidia $NVDA  reported Q4 revenue of $39.3 billion, a 78% YoY increase, surpassing analysts’ expectations of $38.25 billion. Adjusted EPS stood at $0.89, above the forecasted $0.84. Data center revenue surged 93% YoY to $35.6 billion, exceeding the expected $34.06 billion. For Q1, Nvidia forecasts revenue of $43 billion (+/- 2%), exceeding Wall Street's estimate of $42.3 billion, with an expected gross margin of 70.5%-71.5%. The company's revenue growth slowdown was milder than anticipated, and its guidance remains strong. Following the earnings release, Nvidia shares initially surged nearly 4% in after-hours trading before turning negative. CEO Jensen Huang highlighted surging demand for the Blackwell AI chips, stating that the company has significantly ramped up production—its fastest scaling effort in history. Nvidia recorded $11 billion in revenue from the Blackwell architecture in Q4 and expects at least several billion dollars in sales for Q1.
• Salesforce $CRM provided a weaker-than-expected revenue outlook for the latest quarter, dampening investor optimism regarding its new AI products. While the company reported an adjusted Q4 EPS of $2.78 (vs. the $2.61 estimate), revenue came in at $9.99 billion, slightly missing the forecasted $10.04 billion. For Q1, Salesforce expects revenue between $9.71 billion and $9.76 billion, below the consensus estimate of $9.91 billion. For the fiscal year ending January 2026, revenue is projected at $40.5 billion to $40.9 billion, missing analysts’ $41.5 billion estimate. The stock dropped over 7% in after-hours trading.
• Short-selling firms Fuzzy Panda and Culper Research published reports accusing AppLovin (APP.US) of inflating ad click rates and installation conversions through deceptive tactics such as "click baiting" and "click fraud." The company was also alleged to have reverse-engineered Meta’s ad targeting data. Regulatory scrutiny is increasing, with potential action from Apple, Google, Meta, and federal enforcement agencies. AppLovin CEO Adam Foroughi has denied all allegations. The stock plummeted over 20% intraday, triggering a circuit breaker, before closing down 12.22%.
• $AMZN Amazon is set to roll out Alexa+ to select users in March, with a gradual expansion to a wider audience. The AI-powered voice assistant will be free for Amazon members, while non-members will be charged $19.99 per month. This follows Amazon’s announcement of using generative AI to enhance Alexa's capabilities.
• On Wednesday, $LLY Eli Lilly announced plans to invest at least $27 billion to build four new manufacturing facilities in the U.S. Demand for its weight-loss and diabetes drugs remains strong, prompting the expansion. Three of the new sites will focus on producing active pharmaceutical ingredients (APIs) and strengthening supply chains for treatments like Zepbound and Mounjaro (active ingredient: Tirzepatide). The fourth facility will focus on future injectable therapies, reinforcing Eli Lilly’s position in the pharmaceutical industry.

Forex

Key Events

• The U.S. dollar weakened as declining Treasury yields and rising expectations of a Federal Reserve rate cut put downward pressure on the currency. Investor sentiment was further impacted by renewed concerns over global and U.S. economic growth following President Donald Trump's tariff remarks. As uncertainty looms, investors have increasingly shifted funds into safe-haven assets, diminishing the dollar’s appeal in global markets.

Cryptocurrency

Key Events

• Economist and Bitcoin critic Peter Schiff suggested that U.S. President Donald Trump played a role in Bitcoin’s (BTC) rally beyond $100,000, portraying it as a form of "repayment" to his crypto-supporting base. Schiff implied that Trump’s policies, rhetoric, or broader economic impact contributed to the surge, allowing his supporters to profit by selling at the peak. Notably, Trump acknowledged the rally with a "you're welcome" post, positioning himself as a key factor in Bitcoin's rise. Schiff also pointed out that those who failed to sell at the top missed out on potential gains, but emphasized that the responsibility lies with them—not Trump.

Market Events and Most Anticipated Earnings Releases