SoftBank Partners with OpenAI, Trump Proposes Tariffs.

Morning Stock Market

Jan 22

Markets

SoftBank, OpenAI, and Oracle have launched a $100 billion joint venture aimed at accelerating AI infrastructure development in the U.S., with a goal to grow this investment to at least $500 billion.
The joint initiative, announced with President Trump, will initially focus on building new data centers and physical campuses, with significant initial funding coming from SoftBank, OpenAI, Oracle, and Abu Dhabi's MGX.
Following the announcement, SoftBank's shares surged 11% in Tokyo, and Oracle saw an 8.3% increase in premarket trading in the U.S., indicating positive market sentiment around this major investment in artificial intelligence.

Trump has threatened a new 10% tariff on all Chinese goods starting February 1, as part of a strategy to address the influx of fentanyl into the U.S., a move that reflects a potential shift in his tariff policy.
The announcement follows Trump's previous threats of higher tariffs on Mexico and Canada and comes amid claims that Biden has failed to act on a proposed agreement with China regarding drug trafficking.
While Wall Street reacted positively to the delay in tariffs, uncertainty remains within Trump's economic team as they debate the best approach moving forward.

Calamos is set to launch its first "Protected Bitcoin ETF" on Wednesday, providing 100% downside protection against Bitcoin's price while limiting upside potential, aiming to attract more cautious investors wary of Bitcoin's volatility.
Coinbase CEO Brian Armstrong predicts Bitcoin could eventually reach "multiple millions," highlighting the cryptocurrency's significant growth and increasing institutional interest, despite concerns about its volatility as expressed by a substantial portion of surveyed institutional investors.
Calamos plans to unveil additional ETFs offering varying levels of downside protection in the coming weeks, focusing on risk management through U.S. Treasuries and customizable options, indicating a move to broaden their appeal beyond typical crypto investors.

Trump Media & Technology Group (DJT), the owner of Truth Social, saw a decline of approximately 10% in its stock price shortly after President Trump's inauguration, down to around $36 from January highs above $40 and pre-election highs exceeding $50.
Traders are adjusting their positions as the new administration begins, with a mix of bullish and cautious bets seen in various sectors, while broader U.S. indexes are trending higher today.
The volatility of Trump Media's stock, now valued at nearly $8 billion, reflects a 'meme-stock' mentality, and analysts suggest possible sell-offs following the inauguration, indicating that institutional investors may have anticipated retail trading patterns.

Nvidia has witnessed an impressive 840% increase in stock value since December 2022, now valued at $3.3 trillion, with analysts predicting further growth driven by its new Blackwell GPUs, expected to significantly enhance sales and performance in AI tasks.
Barclays raised its price target for Nvidia shares to $175, citing a projected boost in sales growth from Blackwell GPUs, which are estimated to contribute $15 billion in sales this quarter and potentially double that in the next.
Analysts maintain a bullish outlook for Nvidia, highlighting underappreciated opportunities in robotics and autonomous driving, with estimates suggesting that the company could reach a market value of $5 trillion by capitalizing on these sectors.

The S&P 500 is nearing a total erasure of gains made since Donald Trump's election victory, with only a 0.92% increase noted since November 5; the index may see its worst performance post-election ahead of Inauguration Day since 2009.
Both the Dow Jones Industrial Average and the tech-heavy Nasdaq have also seen reduced post-election gains, facing pressures from a recent slump in tech stocks and new regulations on AI chip sales by the Biden administration.
Major U.S. indexes are gearing up for the start of fourth-quarter earnings this Wednesday, with significant reports anticipated from key financial institutions, alongside the release of the December Consumer Price Index, which could impact future trading strategies amid expectations for fewer interest rate cuts in 2025.

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