Weekly Market Pulse: Is The Honeymoon Over Already?

2025-01-27 08:00:00 ET

Summary

• The S&P 500 was up 1.75%, with tech stocks taking the lead as the President welcomed a group of leading technology CEOs to D.C. to announce big investments in AI.
• The big movers last week were the dollar (down nearly 2%), gold (up 2.6%), and non-US stocks.
• The events of the next couple of weeks will determine the short-term course of the dollar but thinking longer term it seems likely to fall.
• Earnings season has gotten off to a good start, especially for financials, where 90% of companies reporting have beaten expectations.

President Trump’s first week on the job was a good one for markets. The S&P 500 was up 1.75%, with tech stocks taking the lead as the President welcomed a group of leading technology CEOs to D.C. to announce big investments in AI. Well, not so much to announce as to re-announce, since finding something new in the press release was pretty hard. Apparently, there was a pool of people on planet earth who hadn’t heard that companies are investing insane amounts of capital in AI with little or no inkling as to how it will all pay off. I’m sure Larry Ellison thanks everyone, for tuning in and boosting his already huge net worth ($228 billion, give or take a few billion). He co-founded Oracle (ORCL) whose stock managed to add 14% on the week because the company joined the Stargate project, which I guess was news of a sort, although I’m a tad skeptical it was worth the $60 billion gain in Oracle’s market cap....

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