Public Markets 8-Hour Briefing
×Market Volatility
Tech stocks slid 1.2% as AI spending fears returned despite Nvidia's better-than-expected results. The Nasdaq's decline came as investors reassessed the sustainability of AI-driven valuations across the sector. Treasuries rose amid the tech slump, sending longer-maturity yields toward their lowest levels of the year as investors sought safety.
Corporate Earnings
Nvidia earnings failed to lift the broader chip sector, with AMD and Broadcom down despite record sales. The results highlighted shifting concerns about AI's destabilizing impact on the technology landscape. Salesforce eased AI fears with a strong outlook and announced major buybacks, while Shake Shack reported higher fourth-quarter profit driven by deals that drew customers amid industry headwinds.
Major Deals & Restructuring
State Farm will pay a record $5 billion dividend to auto clients after posting strong underwriting profits. EBay announced plans to cut 800 jobs as part of a strategic restructuring, though timing and charges remain unclear. J.M. Smucker added directors following pressure from activist firm Elliott, while posting higher third-quarter sales but lowering its full-year forecast due to a manufacturing facility fire.
Regional Markets
Korean stocks emerged as the world's hottest market, driven by strong earnings and economic reforms. Meanwhile, Colombia's dollar bonds fell across the curve and the peso led emerging-market losses after a poll showed leftist Senator Iván Cepeda with a wide lead in the presidential race. Argentine stocks lagged as earnings growth concerns mounted despite initial optimism over President Milei's reforms.
Commodities & Energy
BP aggressively expanded shale drilling, bucking rivals' conservative approaches as the UK oil giant sought to reverse years of anemic output. LPG prices surged to nearly a one-year high following an outage at Saudi Arabia's export terminal, with at least one ship rerouting to the US for supplies. Oil supertankers became the hottest commodity with 600% gains as high shipping costs emerged as a major concern for producers and refiners.
Policy & Regulation
Federal Reserve Governor Stephen Miran said he thinks the Fed needs to cut interest rates by about a percentage point this year. The Supreme Court ruling on tariffs triggered a wave of legal challenges as claims for refunds soared after judges ruled against the Trump administration. The US became increasingly dependent on allies to fund its swollen debt burden, exposing vulnerabilities in the $30 trillion Treasuries market.
Technology & Innovation
Apple sought dismissal of a fraud lawsuit over Siri AI and an Epic injunction. Nvidia CEO Huang said the "Saa Spocalypse" narrative was wrong, seeing "deep misunderstanding" of the AI opportunity. Morgan Stanley said hyperscaler AI spending is set to exceed dot-com peak levels, while ASICS discussed global growth strategies with Bloomberg in Tokyo.
Financial Services
Royal Bank of Canada eyed Canada's expected boom in defense infrastructure and energy spending as a way to deploy capital. Blackstone marketed a new bond for its publicly-traded private credit fund amid software sector stress. Victory Capital filed a competing bid to acquire Janus Henderson, claiming its offer exceeds the $7.4 billion from Trian Fund Management and General Catalyst.
Labor & Employment
Ocado planned to cut 1,000 jobs and restructure its technology unit, warning that earnings from its licensing business would fall below expectations as clients scaled back online grocery plans. The European Central Bank found staff disillusioned about professional development, fairness and transparency amid heavy reliance on their expertise for policy decisions.