GoAI Market Wrap - 14th Jan

Stock Market

On Tuesday Eastern Time, the three major U.S. indices all closed lower, led by a decline in financial stocks. Comments from JPMorgan Chase executives heightened market concerns over President Trump’s recent proposal to cap credit card interest rates.

 

Data released the same day by the U.S. Bureau of Labor Statistics showed the December Consumer Price Index (CPI) rose 0.3% month-over-month, in line with expectations; the year-over-year increase was 2.7%, also matching forecasts. The figures reinforced market expectations for the Federal Reserve to deliver at least two rate cuts in 2026 to support the labor market.

 

Multiple JPMorgan executives, including CEO Jamie Dimon, warned that Trump’s plan to cap credit card rates at 10% could severely harm consumers.

 

The remarks reignited recent selling pressure in the financial sector. Last week, Trump proposed a one-year temporary cap starting January 20, limiting credit card interest rates to a maximum of 10%.

 

The proposal weighed heavily on Visa and Mastercard, both of which saw sharp declines, making the financial sector one of the biggest drags on the S&P 500.

 

Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, said: “Financials are taking a hit from the Trump credit card proposal, and the market is starting to really feel it. I think implementation would be extremely difficult, but it remains a significant overhang.”

 

Amid continued record highs in indices, U.S. companies face pressure to deliver strong earnings growth to justify elevated valuations. JPMorgan and Delta Air Lines kicked off the current earnings season. Analysts expect S&P 500 companies to grow earnings per share by about 8.3% year-over-year in the final quarter of 2025.

 

Other major banks reporting later this week also traded lower, though analysts generally expect solid fourth-quarter results from most.

 

Oliver Pursche, an investment advisor at Wealthspire Advisors, called the pullback a normal cooling-off after new highs—not a sign of deteriorating fundamentals. “Overall, the Q4 earnings outlook remains positive, and we could even see some upward revisions to guidance as the season progresses.”

Global Hotspots

Trump: All meetings with Iranian officials canceled  

 

President Trump posted on his Truth Social platform Tuesday that he has “canceled all meetings with Iranian officials.” Citing U.S. military officials, The New York Times reported that commanders in the Middle East want “more time to consolidate positions before any potential strikes,” to prepare for possible Iranian retaliatory attacks.

 

U.S. CPI surprise cools, Fed rate cut odds rise  

 

With December core consumer price growth coming in below expectations, the Fed’s anticipated rate cut timing has shifted earlier. CCTV reported that on January 13 local time, the U.S. Department of Labor released data showing the 2025 December Consumer Price Index (CPI) rose 2.7% year-over-year; core CPI (excluding volatile food and energy) increased 2.6% annually.

 

Hedge Fund Industry Posts Best Return in 16 Years Last Year  

 

According to Hedge Fund Research Inc., the roughly $5 trillion hedge fund industry posted ~12.6% returns last year—the best since 2009. The AI boom, geopolitical shocks, and interest rate uncertainty created massive volatility, providing fertile ground for volatility-based strategies.

 

Funds managed by giants like D.E. Shaw, Millennium Management, Citadel, Point72 Asset Management, and Qube Research & Technologies all delivered double-digit gains. Bridgewater’s flagship Pure Alpha II posted a record 34% return.

Company News

Meta plans to double AI smart glasses production to 20M units annually  

 

Latest reports indicate Meta Platforms and EssilorLuxottica are discussing doubling AI smart glasses capacity by year-end to capture surging demand and outpace competitors. Insiders say, with Ray-Ban Meta sales ramping up, Meta has proposed raising annual capacity to 20 million units or more by end-2026.

 

As the world’s largest eyewear manufacturer, EssilorLuxottica is already nearing its original target of 10 million units annually by end-2026. Discussions have also touched on potential expansion beyond 30 million if demand proves strong enough, though no final decision has been made.

 

Apple launches $38/year creative app subscription bundle  

 

Apple announced Apple Creator Studio, bundling Final Cut Pro, Logic Pro, Pixelmator Pro, Motion, Compressor, MainStage, plus new AI features and premium content in Keynote, Pages, and Numbers. The service launches January 28 (Wednesday), priced at ¥38/month or ¥380/year.

 

Students and educators qualify for educational pricing at ¥18/month or ¥180/year. Apple Creator Studio is available as a universal purchase on the App Store, shareable with up to 6 family members.

 

Delta Air Lines to order 30 Boeing 787 widebody jets  

 

Delta Air Lines announced an agreement with Boeing to purchase 30 787-10 widebody aircraft, with options for 30 more. Deliveries are scheduled to begin in 2031. Delta also reached a deal with GE Aerospace to provide maintenance services for the GEnx engines selected for the aircraft.

Forex & Commodities  

International oil prices rose January 13.  

 

At close, WTI crude futures continuous contract +$1.60 to $61.10/barrel (+2.69%).  

 

COMEX gold futures continuous contract −$20.30 (−0.44%) to $4,594.40/oz. Silver continues to hit new highs. COMEX silver futures continuous contract +$1.769 (+2.08%) to $86.86/oz.  

 

Spot silver +$1.77 (+2.08%) to $86.93/oz.

Key Events  

New Highs Keep Coming — CME Strikes Again! Precious Metals Margin Shift from Fixed to Floating  

 

The CME Group once again adjusted margin requirements for its precious metals futures contracts.

 

On January 12 local time, CME announced a change for gold, silver, platinum, and palladium futures, moving from primarily fixed dollar amounts to a percentage of the contract’s notional value

Cryptocurrency 

Bitcoin +4.46% to $95,136.13.  

 

Ethereum +7.53% to $3,324.95.  

 

XRP +5.84%, BNB +4.95%, Solana +4.91%, Dogecoin +8.11%, Cardano +9.47%.

Crypto Key Event  

ZFX Shanhai Securities: Bitcoin Could Reach $2.9 Million by 2050  

 

As digital assets gain prominence in the global financial landscape, ZFX Shanhai Securities has closely followed VanEck’s long-term valuation report. It projects that in a base-case scenario, Bitcoin’s potential as a global settlement tool and reserve asset could drive its value to $2.9 million by 2050.

 

ZFX views this ambitious valuation not as a simple price forecast, but as a deep extrapolation of Bitcoin’s “digital gold” properties amid the transformation of the global monetary system, reflecting a structural leap for crypto assets over the next 25 years.