Public Markets 8-Hour Briefing
×Market Turmoil
AI-induced tech selloff rattled markets as Anthropic's Claude demonstration sparked fears about software disruption. AMD saw shares tumble despite Meta's AI chip endorsement, while Citrini founder James van Geelen expressed shock at triggering Monday's market meltdown through an AI prediction report. The Nasdaq bounced back briefly after AMD-Meta deal news on AI chips, but broader tech weakness persisted.
Corporate Earnings
First Solar posted higher fourth-quarter profit on increased revenue but guided below analyst expectations for the year. Workday guided for 12-13% subscription revenue growth amid AI disruption concerns. Cava reported 21% revenue growth driven by higher prices and new restaurant openings, while Lucid Group saw revenue climb as EV production and deliveries ramped up. Boston Beer reported lower fourth-quarter revenue and warned shifting tariff policies could significantly impact its 2025 guidance.
Economic Policy
Federal Reserve Bank of Boston President Susan Collins said rates are likely to stay unchanged "for some time" as labor market improvements continue. Fed's Goolsbee called the job market "pretty steady" while expressing slightly more concern about inflation. Bond traders are betting on Fed rate cuts spilling into 2027, piling into futures and options markets. Meanwhile, the Trump administration is considering requiring banks to collect citizenship information as part of immigration enforcement efforts.
M&A & Investment
Core Weave is seeking an $8.5 billion loan from banks including Morgan Stanley and MUFG to finance cloud computing capacity for Meta. Ares Management moved to weaken John Textor's operational control of his football club group after continued losses. Boaz Weinstein warned "wheels coming off" private credit funds as Blue Owl turmoil exposes deeper cracks in the $1.8 trillion industry. Dan Loeb said the "lost art of short selling" is making a comeback as opportunities emerge against crowded trades.
International Markets
Japan stocks gained as a new corporate governance code revision may free up $840 billion in cash held by listed companies. French power prices dropped to their lowest since June as solar generation surged. Deutsche Bank downgraded Blue Owl on weaker retail credit flows. Colombia slapped 30% reciprocal tariffs on more than 60 Ecuadorian goods, escalating a trade dispute between the neighboring countries.
Technology & AI
Anthropic launched new enterprise offerings, raising competitive pressure on software companies. Thomson Reuters stock surged after Anthropic praised its legal tools, making it the latest AI winner. European AI chip startup Axelera raised an additional $250 million. Meanwhile, PayPal faces speculation about potential suitors as the payments landscape evolves.
Regulatory & Legal
A senior US senator opened a Binance probe into alleged Iran and Russia violations following reports of nearly $2 billion funneled to designated Iranian groups. US found that India, Indonesia, and Laos unfairly subsidized solar manufacturing, likely boosting US producers' competitiveness but threatening to increase costs. Spirit Airlines reached a deal with creditors to emerge from bankruptcy by early summer as a smaller company.
Market Outlook
Cheap stocks are becoming harder to find as investors rotate out of US markets, with attractive valuations in Europe and Japan fast disappearing. Most Americans including 30% of Republicans believe Trump is becoming "erratic with age." Software stocks rebounded as Anthropic partnerships eased AI disruption fears, though investors continue dumping the sector despite earnings.