ADDX GO Market Morning Wrap - 28th Feb

Stock Market

Key Events

• OpenAI hosted a live event unveiling its latest model, GPT-4.5, which will be gradually made available for research preview. In a press release, OpenAI described GPT-4.5 as the company’s most advanced chat model yet, boasting a 10x increase in computational efficiency compared to GPT-4. As a product of the "scaling laws" approach—leveraging increased compute power and data for unsupervised learning—the new model exhibits broader knowledge, improved intent recognition, and higher emotional intelligence. OpenAI expects GPT-4.5 to be significantly more useful in writing, coding, and problem-solving, while also reducing hallucination issues.
• $NVDA Nvidia closed down over 8% on Thursday, pushing its market capitalization below $3 trillion. Investors were unimpressed with the company’s mixed guidance, as they had become accustomed to explosive earnings growth. While analysts remain broadly optimistic, citing strong demand for Nvidia's upcoming Blackwell product, they also highlighted concerns over weaker profit margins. Morgan Stanley noted that while Nvidia’s latest earnings report wasn’t perfect, the temporary "growing pains" are fading, and Blackwell is poised for full-scale adoption. The firm expects sustained AI demand through the end of the year, arguing that AI spending is not a bubble but rather a cyclical trend, with market enthusiasm likely to reignite in 6-9 months.
• According to sources, $META Meta Platforms plans to launch a standalone Meta AI app in Q2. Meta AI, originally introduced in September 2023, serves as a generative AI assistant capable of responding to user prompts and creating images across Meta’s applications. The company is also exploring a paid subscription model similar to those offered by OpenAI and Microsoft. In January, Meta’s CFO highlighted the company’s focus on delivering a great consumer experience while acknowledging significant long-term monetization opportunities, including premium services and paid recommendations.
• Following Microsoft, $AMZN Amazon has officially announced its quantum computing chip. The company claims that its breakthrough in fault-tolerant quantum computing could reduce error correction costs by up to 90%.
• Tencent (00700.HK) officially launched the new-generation HunYuan Turbo S model. Unlike DeepSeek R1 and HunYuan T1, which require “slow thinking” before responding, Turbo S delivers responses significantly faster, doubling text output speed while reducing first-word latency by 44%. Developers and enterprise users can now access the model via Tencent Cloud API, with a one-week free trial available starting today.
• Xiaomi Group(01810.HK) unveiled the SU7 Ultra, a high-performance EV positioned against luxury sports cars. The vehicle features advanced autonomous driving capabilities, including automated parking and extreme narrow-space maneuvers. Xiaomi’s CEO, Lei Jun, praised Porsche, stating that “international brands have a strong sense of vision.” Meanwhile, the Xiaomi 15 Ultra smartphone boasts a 1-inch main camera sensor, a 200MP periscope telephoto lens, and offline communication capabilities. In the home appliance sector, all Xiaomi products will qualify for national subsidies. According to Xiaomi Auto, the SU7 Ultra received over 10,000 pre-orders within two hours of launch.

Forex

Key Events

• On Thursday morning (ET), Donald Trump reaffirmed that the tariffs on Mexico and Canada, set to take effect on March 4, will proceed as planned. Additionally, the reciprocal tariff measures scheduled for April 2 will also be fully implemented. In response, French Finance Minister Bruno Le Maire stated that the EU would retaliate in kind if the U.S. imposes additional tariffs, while Canadian Prime Minister Justin Trudeau vowed an immediate and strong response. Following Trump’s announcement, the U.S. dollar index surged intraday, briefly surpassing 107, while the Canadian dollar, Mexican peso, euro, offshore yuan, and U.S. equities declined.
• U.S. Treasury yields have recently broken below key technical support levels, approaching the 200-day moving average. Since Trump’s election, most of the factors that drove yields higher since September last year have reversed, with the Federal Reserve's stance remaining the primary influence. Morgan Stanley noted that Treasury yields are closely tied to the market-implied Fed funds rate floor, which suggests further downside potential for yields. If the implied floor drops from the current 3.65% to 3.25%—the level observed in October 2024—the 10-year Treasury yield could fall below 4.00%.
• The U.S. Department of Labor reported that initial jobless claims for the week ending February 22 rose by 22,000 to 242,000, the highest level since October 2023.
• U.S. Q4 2024 real GDP grew at an annualized rate of 2.3%, with consumer spending rising 4.2%.
• The PCE price index increased 2.4% year-over-year, while the core PCE price index rose 2.7%, both exceeding the Federal Reserve’s target.

Cryptocurrency

Market Events and Most Anticipated Earnings Releases