The US stock market experienced a day of volatility as trading opened on a Thursday, leading to a disappointing decline across all three major indicesThe S&P 500 Index, which had enjoyed three consecutive days of gains, fell as a result of significant pullbacks in the large technology sector, especially dragging down the Nasdaq Composite by nearly 1%. By the close of the market, the Dow Jones Industrial Average had dipped by 0.16%, landing at 43,153.13 pointsThe S&P 500 lost 0.21% to end the day at 5,937.34 points, while the Nasdaq fell 0.89%, finishing at 19,338.29 points.

Despite a majority of S&P 500 sectors (eight out of eleven) reporting gains, the overall index reflected a downward trend mainly attributed to the decline of major tech stocksSam Stovall, Chief Investment Strategist at CFRA Research, commented, “The market reacted to slightly better-than-expected inflation data, leading to relief among investors and prompting short-sellers to cover their positions

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I believe some profit-taking scenarios were evident in today’s trading.”

The backdrop to this market shift includes recent remarks from Federal Reserve Governor Christopher Waller, who indicated that if inflation metrics continue to improve, the Federal Reserve might be inclined to lower interest rates sooner and more aggressively than initially anticipated.

FactSet's latest analysis revealed a robust start to the earnings season for Q4, with approximately 77% of companies that have reported thus far exceeding expectations, signaling investor optimism despite the downturn in tech stocksNotably, Morgan Stanley saw its stock surge by 4% after the bank reported a doubling in profits for Q4, reflecting the continued strong performance among large banks during earnings season.

In further positive news, Taiwanese semiconductor giant TSMC saw its shares rise nearly 4% following an optimistic outlook on its capital expenditures for 2025, which disproved rumors regarding significant reductions in orders for its CoWoS packaging technology

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Conversely, Apple Incexperienced a 4% drop, marking the worst trading day for the tech giant since August 5 of the previous yearUnitedHealth also faltered, seeing a 6% decline due to quarterly revenues that fell short of expectations.

The downturn among major tech stocks was pervasive; Apple lost 4.04%, Microsoft slipped by 0.41%, Nvidia fell by 1.96%, Google dipped by 1.35%, Amazon decreased by 1.20%, Meta dropped by 0.94%, and Tesla faced a significant 3.36% decline.

Adding to the competitive landscape, Tesla is reportedly offering discounts on its Cybertruck electric pickup trucks from current inventory, reflecting growing competition in the electric vehicle sectorAccording to details on Tesla's website, discounts can reach up to $1,600 on new Cybertruck models, with demo versions seeing reductions up to $2,630. Despite Tesla’s ambitious sales target of 500,000 Cybertrucks annually, the company managed to deliver only about 40,000 units last year, showing a gap in expectations versus reality.

In terms of overall performance, Tesla reported that it delivered around 1.79 million vehicles globally in 2024, down 1.1% from a record 1.81 million in 2023—the first annual decline in deliveries since 2011.

Meanwhile, in the mining sector, the news was swirling regarding a possible merger between two major players, Rio Tinto and Glencore

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Reported discussions about a merger could potentially lead to the largest transaction in mining historySources cited that preliminary negotiations had taken place recently, yet there remains a veil of uncertainty about the current status and any further developments in the discussions.

Rio Tinto stands as the world's second-largest mining company, boasting a market capitalization of approximately $103 billion as of Thursday’s market closeIn contrast, Glencore holds a market value of around $55 billionShould these companies combine, they would surpass BHP, the industry front-runner valued at about $126 billion.

Morgan Stanley has also been in the spotlight, announcing their Q4 earnings on January 16, revealing net revenues of $16.2 billion compared to $12.9 billion the previous year, with net profits jumping to $3.7 billion from $1.5 billion in the same periodFor the entire year of 2024, Morgan Stanley reported net revenues of $61.8 billion, an increase from $54.1 billion, with net profits reaching $13.4 billion, up almost 50% from the previous year’s figures.

On another front, Bank of America reported a significant 43% year-on-year rise in investment banking revenues for Q4, totaling $1.69 billion

• Liquidity Risks in the U.S. Treasury Market
• Contradictory Data Poses Challenge for the Fed
• Profit Pressures on Financial Payment Institutions
• The Peak of U.S. Inflation: An Ongoing Trade
• Outlook on Interest Rate Trends in China and the U.S.

The bank also noted a 3% increase in net interest income, climbing to $14.4 billion, which exceeded analyst predictionsThis robust performance in investment banking has consequently bolstered the bank's non-interest revenues, which rose by 37% to nearly $11 billion.

In the tech realm, Nintendo officially introduced its next-generation gaming console, the Switch 2, on January 16, announcing a presentation session set for April 2 for further details about the innovative deviceNintendo indicated that the new product will be available for release later in the year, sparking excitement among gaming enthusiasts.

Finally, Ehang Intelligent disclosed that its flagship unmanned eVTOL aircraft, the EH216-S, completed its inaugural flight in downtown Shanghai on January 16. This marks a significant development as Ehang prepares to launch a regular sightseeing route along the Huangpu River from Shanghai's Longhua Airport