GoAI Market Wrap - 10th Feb
Stock Market
U.S. equities closed higher on Monday, led by a nearly 1% gain in the Nasdaq. The Dow edged up to log another record close, while the S&P 500 rose 0.5%, finishing just a fraction below its all-time high.
By the close, the Dow Jones Industrial Average rose 0.04% to 50,135.87; the S&P 500 gained 0.47% to 6,964.82; and the Nasdaq Composite advanced 0.90% to 23,238.67.
Nvidia and Broadcom remained outperformers on Monday, climbing 2.5% and 3.3% respectively to extend gains from the previous session. Oracle, another artificial intelligence play, saw its shares surge 9.6%.
The performance follows a pronounced sell-off earlier last week, a downturn primarily sparked by a retreat in technology shares, particularly in the software sector. Bitcoin also experienced a sharp decline before staging a modest recovery, reflecting a temporary pivot toward a risk-off posture by investors.
However, U.S. markets rebounded significantly last Friday, with the Dow making history by closing above the 50,000 mark for the first time.
"Investors are wondering, 'Okay, we’ve just had a strong bounce—can this momentum be sustained? Am I being lured in only to get clobbered again, or is this truly another buying opportunity?'" said Sam Stovall, Chief Investment Strategist at CFRA Research.
Regarding the forward P/E ratio of tech stocks relative to their five-year average, Stovall noted: "We’ve gone from a 17% premium to an 8% discount. You could argue that looks quite attractive, and perhaps it’s not yet time to rotate entirely out of tech."
Global Markets
Starmer Vows to Remain UK PM Amid Public Pressure
UK Prime Minister Keir Starmer met with Labour MPs on Monday night, stating he will overhaul Downing Street’s operations and continue in his role.
That same day, several cabinet officials, including Deputy PM David Lammy, Foreign Secretary Yvette Cooper, and Chancellor Rachel Reeves, publicly voiced their support for Starmer on social media.
Fed’s Waller: Trump-Induced Crypto Fervor May Be Fading
Federal Reserve Governor Christopher Waller suggested that the wave of optimism driving crypto markets following Donald Trump’s election may be receding as a sell-off hits the space.
"With the current administration coming in, there was some euphoria in the crypto world, and some of that is drifting away," Waller said at a conference in California on Monday.
Company News
Alphabet Plans $20B Bond Sale to Fuel AI Spending
Google parent Alphabet is seeking to raise $20 billion through a USD bond offering, a figure higher than the initially projected $150 billion. Sources familiar with the matter said the sale attracted over $100 billion in orders across as many as seven tranches.
The longest portion—a bond maturing in 2066—was priced at 0.95 percentage points over Treasuries. Additionally, Alphabet is pitching investors for its debut offerings in Switzerland and the UK. The UK issuance may include a rare 100-year bond, marking the first time a tech firm has attempted such a long duration since the dot-com bubble of the late 1990s.
Altman: ChatGPT Monthly Growth Returns Above 10%
OpenAI CEO Sam Altman told employees last Friday that ChatGPT’s monthly growth rate has returned to over 10%, according to internal Slack messages seen by media. He also indicated that OpenAI is preparing to launch an "upgraded chat model" this week.
Musk: SpaceX Shifts Focus to "Self-Growing City" on Moon Before Mars
Elon Musk stated that SpaceX will prioritize lunar projects over Mars, citing shorter timelines and strategic urgency while maintaining the company's long-term vision for the Red Planet. "For those who don’t know, SpaceX has shifted focus to a 'self-growing city' on the Moon, as we can potentially achieve that in less than 10 years, whereas Mars is 20+ years away," Musk posted on X.
Hims & Hers: Novo Nordisk Lawsuit a "Blatant Attack"
Hims & Hers issued a statement Monday calling Novo Nordisk’s lawsuit a blatant attack on millions of Americans who rely on compounded medications for personalized care, accusing Big Pharma of weaponizing the legal system to limit consumer choice. Novo Nordisk announced earlier that day it had filed suit over patent infringement related to Hims & Hers' compounded semaglutide products.
Converse Employees Asked to Work Remotely During Restructuring
Employees at Converse were instructed to work from home this week as the Nike-owned brand implements a strategic pivot aimed at reviving sales growth. The changes include new roles and team reorganizations, which management indicated will result in some staff reductions.
Forex & Commodities
WTI Crude Oil futures settled up 1.27% at $64.36/bbl; Brent Crude settled up 1.45% at $69.04/bbl.
COMEX Gold futures settled up 2.1% at $5,084.20/oz; COMEX Silver settled up 8% at $83.05/oz.
Key Events
U.S. Energy Secretary to Visit Venezuela; Denies Regime Change Linked to Oil
U.S. Energy Secretary Chris Wright stated he will soon travel to Venezuela to meet with leadership and discuss the future of the state-run oil company. However, he insisted the Trump administration’s interest in the resource-rich nation is not about oil.
Wright claimed that ousting former leader Maduro "was not about increasing oil supply" and that Venezuela's top-tier crude reserves were "never a significant consideration in decision-making."
Cryptocurrency
Bitcoin (BTC) is trading at $69,800.43, down 0.83% in 24 hours;
Ethereum (ETH) is at $2,098.69, up 0.86%.
XRP up 0.46% to $1.43, Solana (SOL) down 0.60% to $86.44, BNB down 0.37% to $636.31, Tether (USDT) at $0.9994, up 0.01%, and USDC at $0.9998, down 0.01%.
Key Events
South Korean Exchange Erroneously Distributes $40B in Bitcoin
Reuters reported on Feb 7 that the Bithumb exchange accidentally distributed over $40 billion worth of Bitcoin to customers as promotional rewards, causing a flash crash in the cryptocurrency's price on the platform.
Bithumb apologized for the Feb 6 error, stating it has recovered 99.7% of the 620,000 BTC—valued at roughly $44 billion. Trading and withdrawals were restricted for 695 affected customers within 35 minutes of the error.