Public Markets 8-Hour Briefing
×Market Turmoil
The S&P 500 tumbled as AI disruption fears hit financial and software stocks, with delivery, payments, and software shares sliding sharply after Citrini Research published a report on AI risks. Hedge funds sold the most global equities since April, according to Goldman Sachs, as uncertainty over American trade policy clouded sentiment. Options traders piled into bets against software-exposed loan ETFs, anticipating further woes for the sector.
Tariff Impact
President Trump vowed to press ahead with his trade war after the Supreme Court struck down his tariffs, casting new uncertainty over global markets. Retailers won tariff relief on a Supreme Court ruling that should expand margins, with the US' global tariff set at 15% versus an average 20% for the sector. Mexico detailed how it took out its most-wanted cartel chief, stressing that US security agents didn't actively participate in President Claudia Sheinbaum's most direct intervention yet.
Energy & Commodities
Soybeans reversed earlier losses to turn higher as traders tried to unpack how changes to President Donald Trump's tariff regime will impact US crop shipments. US natural gas futures rose slightly as a blizzard slamming into the Northeast pushed up demand for heating and power-plant fuel, though the storm knock largely offset gains. Oil companies got a Supreme Court hearing on climate suits as Exxon Mobil Corp. and Suncor Energy Inc. appealed to stop dozens of city and state lawsuits blaming them for climate change.
Corporate Moves
Abbott Laboratories is selling $20 billion of bonds to help fund its acquisition of cancer-screening company Exact Sciences Corp., one of the US high-grade market's biggest offerings this year. Exchange Income Corp. is preparing to sell as much as C$500 million ($365 of bonds in its first note sale, according to people familiar with the matter. Panama ordered the temporary occupation of two ports run by a unit of Hong Kong-based CK Hutchison Holdings Ltd after the country's constitutional court ruled against the deal.
Tech & AI
Nvidia is set to report Q4 earnings ahead of its annual GTC event, with analysts expecting strong results and guidance. IBM stock tumbled 10% after Anthropic launched a COBOL AI tool, while Dell saw its stock target cut at Bof A on rising memory costs. European private lenders' shares tumbled as fears around the strength of their underlying holdings intensified, with Blue Owl becoming a warning of what happens when exotic products don't go to plan.
Economic Indicators
US factory orders fell 0.7% in December, while durable goods orders were down 1.4%, according to US Census Bureau data. Lebanon's commercial banks lack the liquidity required to repay depositors under a government proposal aimed at plugging an $80 billion gap in the financial system, an adviser to the lenders said. Colombia's peso is defying economic and political woes after a surprisingly hawkish pivot in monetary policy reinforced the dominant carry trade.
Weather Disruption
A powerful winter storm pummeled New York, cutting off the city with up to 28 inches of snow possible and grounding thousands of flights. New York City Mayor Zohran Mamdani lifted a travel ban but still encouraged people to stay off the roads as snow continued to fall across the region. The New York Stock Exchange and Nasdaq said they would operate markets as normal on Monday despite the blizzard sweeping through the New York area.