OP Market Rundown: Tech Earnings, Tariff Threats & AI Developments
Futures Hold Gains Despite Market Uncertainty
U.S. stock futures edged higher Friday morning as traders digested renewed tariff threats from former President Donald Trump and a wave of tech earnings reports.
- Dow futures: +88 points (+0.2%)
- S&P 500 futures: +23 points (+0.4%)
- Nasdaq 100 futures: +155 points (+0.7%)
Yesterday’s market rally cooled off after Trump reiterated plans for aggressive tariffs, but Tesla’s (TSLA) strong guidance helped offset Microsoft’s (MSFT) weaker-than-expected cloud outlook. Meanwhile, discussions around a new AI breakthrough from China’s DeepSeek rattled global markets earlier this week.
Trump’s Fresh Tariff Threats
Trump reaffirmed his stance on tariffs, saying he would impose a 25% import tax on Canada and Mexico starting February 1 to curb illegal immigration and fentanyl trafficking. He also hinted at additional levies on China but gave no specifics.
In a separate post, he warned BRICS nations (Brazil, Russia, India, China, South Africa) of 100% duties if they try to challenge the U.S. dollar as the global reserve currency.
Economists warn these tariffs could fuel inflation, spark a global trade war, and increase market uncertainty—key risks traders must monitor.
Apple’s iPhone Outlook: Better Than Feared?
Apple (AAPL) shares initially dipped post-earnings but rebounded as the company guided for low-to-mid single-digit sales growth in the upcoming quarter—outpacing expectations.
- iPhone sales missed estimates in Q4, partly due to AI features not being available in some markets.
- CEO Tim Cook remains optimistic, saying Apple Intelligence is already driving demand.
- Unlike other tech giants, Apple has been cautious with AI investments, prioritizing security over speed.
Analysts see upcoming catalysts like the iPhone SE4 launch (March) and iOS 18.4 (April) with a major Siri AI update as bullish for Apple stock.
- Citi’s new AAPL price target: $275 (up from $255)
- Goldman Sachs’ new target: $294 (up from $280)
PCE Inflation Data in Focus
Today’s Personal Consumption Expenditures (PCE) report will be a major event for markets.
- Headline PCE expected at 2.6% YoY, 0.3% MoM (higher than previous).
- Core PCE expected to hold steady at 2.8% YoY, but tick up to 0.2% MoM.
The Fed will be watching closely—this data could influence future rate cuts. For now, Powell & Co. are staying “wait and see” on monetary policy.
Crude Oil & Gold Watch
Oil prices edged higher but are on track for weekly losses, weighed down by concerns over Trump’s potential tariffs.
- WTI crude: +0.2% to $72.88
- Brent crude: +0.1% to $75.99
Meanwhile, gold continues to hover near record highs, as traders hedge against uncertainty in global markets.
DeepSeek AI & U.S. Scrutiny
U.S. officials are investigating whether China’s DeepSeek bypassed Nvidia chip restrictions via third parties in Singapore. The startup’s new R1 chatbot has demonstrated performance on par with U.S. AI models, raising concerns about China’s AI capabilities.
OP Takeaway:
Another strong week of gains in the books! Don’t overtrade today—protect those profits! See you all in chat.
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