GoAI Market Wrap - 15th Jan

Stock Market

On Tuesday Eastern Time, the three major U.S. indices all closed lower, with the Nasdaq leading the decline. Tech stocks weakened as investor money rotated into defensive sectors, while bank stocks extended their sell-off following mixed quarterly earnings reports.

 

The financial sector, which had surged sharply in 2025, continued to retreat this week amid market concerns over President Trump’s proposed credit card interest rate cap. JPMorgan Chase executives had previously warned that the policy could squeeze consumer credit availability and hurt industry profits.

 

Bank stocks slid further on Tuesday, with Wells Fargo shares dropping 4.6% to become one of the biggest drags on the broader market after the bank reported quarterly profit and revenue below expectations.

 

Bank of America and Citigroup, despite beating market forecasts, also traded lower. Traders noted that the results were not strong enough to support elevated overall market valuations near all-time highs.

 

Michael O’Rourke, chief market strategist at JonesTrading, said: “After a solid run, combined with earnings that are at best in-line and at worst a bit underwhelming, banks are seeing profit-taking and consolidation. Overall, the market remains optimistic on the sector.”

 

He added that the credit card rate cap proposal may not ultimately materialize, but “no bank executive can definitively rule it out.” Meanwhile, investors are pulling capital from richly valued tech giants and rotating into value and defensive names.

 

On the macro front, U.S. November PPI rose 3% year-over-year (expected 2.7%), with a 0.2% monthly increase (in line); core PPI climbed 3% YoY (expected 2.7%) and was flat month-over-month (expected +0.2%).

 

The Fed’s latest Beige Book showed economic activity expanding in most regions recently, with employment generally stable, though inflationary pressures persist. This provides a practical basis for the Fed to hold rates steady in the near term while monitoring incoming data.

 

Markets broadly expect U.S. benchmark rates to remain unchanged through the first half of the year, including the upcoming January FOMC meeting. Traders are pricing in at least two rate cuts for the year.

 

Geopolitical uncertainty is also weighing on risk sentiment. U.S. forces withdrew personnel from Al Udeid Air Base on Wednesday, while Iran warned of retaliation if strikes are launched.

 

At the same time, Trump is pushing for U.S. control over Greenland, taking a hardline stance ahead of talks and stating that any outcome short of Greenland becoming part of the United States would be “unacceptable.”

Global Hotspots

Multiple countries urge citizens to leave Iran  

 

Poland’s Foreign Ministry issued a statement late January 14 local time urging Polish citizens to leave Iran immediately. Italy’s Foreign Ministry issued a similar advisory the same evening.

 

The UK embassy in Iran announced the same day that its staff have temporarily withdrawn due to the security situation, with the embassy now operating remotely.

 

White House announces 25% tariffs on certain semiconductors  

 

The White House announced on January 14 that, effective January 15, a 25% ad valorem tariff will be imposed on certain imported semiconductors, semiconductor manufacturing equipment, and derivatives.

Company News

Google introduces “Personal Intelligence” in Gemini app  

 

Google announced Wednesday that it has begun testing a new AI tool for users. The feature integrates information from Gmail, Google Photos, and other apps to deliver highly personalized responses in the chatbot.

 

The “Personal Intelligence” capability is now open for testing to individual accounts. Google Labs VP and Gemini app lead Josh Woodward said in a blog post: “Whether linking a discussion from your email to a video you’ve watched or picking up subtle clues from your photo library, Gemini now understands context without needing explicit instructions on where to search.”

 

OpenAI strikes multi-billion compute deal with Cerebras  

 

OpenAI signed a multi-year agreement with Cerebras Systems to access the equivalent of 750 megawatts of compute capacity using its hardware to support rapid AI infrastructure expansion. In a Wednesday statement, OpenAI said it will integrate Cerebras into its compute network for faster response times.

 

Sources say the deal exceeds $10 billion. OpenAI co-founder and president said the speed boost will “unlock next-generation use cases and bring the next billion users into AI.” Cerebras uses wafer-scale chips for processing, following a different path from mainstream approaches. The company is seeking broader adoption to challenge market leader Nvidia.

 

Musk’s xAI under California investigation over Grok-generated inappropriate images  

 

Elon Musk’s X-affiliated AI startup xAI is facing an investigation by the California Attorney General’s office. The probe stems from allegations that Grok generated thousands of inappropriate images of women and children without consent.

 

California AG Rob Bonta announced the investigation Wednesday, stating: “I urge xAI to take immediate action to ensure such incidents do not recur.” Musk has faced global criticism over Grok’s image generation capabilities.

 

So far, he has defended Grok, attributing the issue to user misuse rather than the technology itself. Musk posted on X Wednesday: “Obviously Grok doesn’t spontaneously generate images—it only does so upon request. As a matter of policy, when asked to generate images, it refuses to produce anything illegal.”

Forex & Commodities  

International oil prices rose January 14.  

 

At close, WTI crude futures continuous contract +$0.09 to $61.02/barrel (+0.15%). Silver and gold continue hitting new highs.  

 

COMEX gold futures continuous contract +$34.80 (+0.76%) to $4,633.90/oz. COMEX silver futures continuous contract +$6.847 (+7.93%) to $93.815/oz.  

 

Spot silver +$6.26 (+7.20%) to $93.19/oz. LME tin +$4,855 (+9.88%) to $54,000/ton.  

 

The dollar index closed the session at 99.135, roughly flat with the prior day.

Key Events  

Fed’s Harker Reiterates: If Inflation Continues Cooling, More Cuts Possible This Year  

 

Philadelphia Fed President Patrick Harker said Wednesday local time that if inflation continues to fall as expected and the labor market stabilizes, the Fed could cut short-term rates further later this year.

 

In prepared remarks for a Philadelphia Chamber of Commerce event, Harker said: “My baseline outlook is quite moderate.” He expects inflation to approach 2% by year-end, with a stable labor market and economic growth around 2%.

Cryptocurrency

Ethereum +0.47% to $3,341.02.

 

XRP −1.28%, BNB −0.24%, Solana +0.85%, Dogecoin −1.39%, Cardano −2.10%.

Crypto Key Event  

JPMorgan: Expect Continued Growth in Crypto Inflows in 2026  

 

JPMorgan analysts forecast that crypto asset inflows will keep rising in 2026 after hitting a record ~$130 billion in 2025, driven primarily by institutional investors.

 

They note that finalized U.S. crypto regulations like the Clarity Act will promote institutional adoption of digital assets while spurring venture investment, M&A, and IPO activity in the space.