GoAI Market Wrap - 19th Feb
Stock Market
On Wednesday, the three major U.S. indices closed higher across the board. By the close, the Dow Jones Industrial Average rose 0.26% to 49,662.66; the S&P 500 gained 0.56% to 6,881.31; and the Nasdaq Composite climbed 0.78% to 22,753.63.
The "Magnificent Seven" collectively trended upward. NVIDIA closed up 1.63%, following the previous day's announcement of a multi-year, multi-generational strategic partnership with Meta. Amazon rose 1.81% as the company received a significant stake increase from Pershing Square, making it the fund's third-largest holding.
Memory-related stocks saw strength, with Micron Technology closing up 5.3% and Western Digital rising 4.38%. 13F filings released the previous day showed that David Tepper’s Appaloosa Management made a large-scale purchase of Micron shares. Stephen Lee, a treasury executive at Logan Capital Management, noted that while some "lesser-known" tech names also performed well, it remains unclear if today's action dispels the argument that the market is becoming increasingly selective.
Intraday, minutes from the Federal Reserve's January monetary policy meeting revealed that a few officials suggested the possibility of raising rates should not be ruled out. They advocated for post-meeting statements to more clearly reflect that policy decisions could go in either direction. Charlie Ripley, an executive at Allianz Investment Management, stated that the minutes support the view that a Fed rate cut is unlikely in the foreseeable future.
Following reports that a diplomatic breakthrough between the U.S. and Iran is unlikely and that military action appears "imminent," energy and gold mining stocks mostly moved higher. ExxonMobil closed up 3.07%, ConocoPhillips rose 2.39%, Newmont gained 1.95%, and Agnico Eagle Mines surged 3.61%.
Global Markets
Sources: U.S. and Israel May Launch Joint Strike on Iran
U.S. sources indicated on February 18 that there are no signs of a diplomatic breakthrough between the U.S. and Iran. Meanwhile, mounting evidence suggests that U.S. military action against Iran is "imminent". Sources revealed that if an operation is launched, it would likely be a large-scale campaign lasting several weeks.
A joint U.S.-Israeli operation would likely far exceed the scale of last June's "12-Day War," posing an "existential threat" to Iran and carrying far-reaching implications for the entire region.
FOMC Minutes: Further Cuts Appropriate if Inflation Falls as Expected
The Federal Reserve's monetary policy meeting minutes showed that many participants felt further rate cuts would likely be appropriate if inflation falls in line with their expectations.
However, several participants believed that additional cuts could weaken the public's perception of the Fed's commitment to its inflation target. Furthermore, multiple officials stated they would have supported adopting "two-way" language for future rate decisions to reflect that a rate hike could be appropriate if inflation remains persistent.
Corporate News
Google: Gemini App Now Powered by Lyria 3 Music Generation Model
Google announced that its Gemini application now features its most advanced music generation model, Lyria 3. The model has launched in the U.S. and is currently being rolled out to YouTube creators in other countries.
Rio Tinto Secures Control of Nemaska Lithium to Bolster Battery Metal Chain
Global mining giant Rio Tinto has secured a majority stake in Canada’s Nemaska Lithium as part of its push into battery-grade metal projects in Quebec. The company expects to invest approximately $300 million in its Quebec lithium operations in 2026, with plans to increase spending significantly in the following years.
Uber to Build DC Fast-Charging Stations in Key Cities
Uber announced an expansion of its charging hubs, starting in the San Francisco Bay Area, Los Angeles, and Dallas. The company is investing over $100 million to develop new high-capacity EV charging hubs at convenient parking locations. Additionally, Uber is partnering with ChargePoint globally on utilization guarantee agreements.
Booking Holdings Beats Q4 Estimates as Travel Demand Remains Robust
Booking Holdings reported fourth-quarter revenue of $6.35 billion, surpassing the analyst estimate of $6.13 billion. Room nights sold reached 285 million, beating the expected 277.6 million. The company forecasts Q1 revenue growth of 7% to 9% on a constant-currency basis.
Forex & Commodities
WTI Crude Oil futures surged $2.68 to close at $64.94 per barrel, a gain of 4.30%.
COMEX Gold futures rose 1.84% to $4,996.10/oz, and COMEX Silver gained 4.88% to $77.13/oz. Spot Gold rose 2.05% to $4,977.50/oz, while Spot Silver gained 4.95% to $77.18/oz.
Key Event
Currency Hedging Among U.S. Insurers Surpasses Previous Peaks
As dollar volatility has intensified since the start of the year, U.S. insurance companies have significantly increased their dollar-hedging activities.
According to Clearwater Analytics, the volume of dollar forward contracts purchased has climbed sharply, surpassing the peak set after President Trump's "Liberation Day" tariff announcement last year.
Cryptocurrency
Bitcoin (BTC) is currently trading at $66,433.96, down 1.27% over the past 24 hours, while Ethereum (ETH) has slipped 1.26% to $1,956.07.
Major altcoins are underperforming: XRP dropped 3.59% to $1.41, Solana (SOL) fell 4.49% to $81.38, and BNB declined 2.19% to $602.86. Tether (USDT) remains steady at $0.9994.
Key Event
Goldman Sachs CEO David Solomon Discloses Bitcoin Holding
After years of skepticism, Goldman Sachs CEO David Solomon disclosed at the World Liberty Forum that he holds a "very, very limited" amount of Bitcoin.
Solomon, who previously called the asset speculative and questioned its use cases, now describes himself as an observer. This shift reflects growing institutional engagement with crypto as the industry gains legitimacy under the current administration.