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The market capped off a risk-off month and week, with yet another risk-off day. Utilities led the gains in February, rising 10%, while financials and tech both fell 4%. Unfortunately, Nvidia’s 14th consecutive beat-and-raise quarter was not enough to get the AI trade’s momentum back. But maybe we’ll have better luck in March…that is if we can avoid any geopolitical fireworks over the weekend.

In today’s issue, we cover the latest AI developments impacting stocks, the hotter-than-expected producer price numbers, the market’s new defensive shift, and more!

STOCKS
The AI Spending Isn’t Slowing Down 🤑 

A continued selloff in tech might’ve dampened some people’s spirits, but it hasn’t broken Sam Altman’s. OpenAI announced a new $110B funding round today at a massive $730B valuation, with money coming from three key partners. 

Amazon invested $50B & signed a multi-year strategic partnership focused on customized models to power its customer-facing apps. And Nvidia and SoftBank split the remaining $60B equally. 💸 

On CNBC’s Squawk Box, CEO Sam Altman said “AI is going to happen everywhere. It’s transforming the whole economy, and the world needs a lot of collective computing power to meet the demand.” 

In another interview, when pressed about the valuation, Altman said that it is up to the market to decide. He quickly pivoted to the company’s rapid revenue growth, adding that it’ll move to become profitable when the time is right. ⏱️ 

Still, AI skeptics say this is another sign of the “excess” and overly optimistic thinking of current tech investors. With OpenAI reportedly projecting 2030 revenues of $280B, there is certainly a lot of optimism baked in, but there’s still clearly an appetite for it.

Public market investors are left to determine the impact of AI across sectors. This week, cybersecurity stocks were targeted. The week before, it was logistics stocks. And next week it will certainly be something else. 🤷‍♂️ 

What’s clear is that the real AI impact remains unknown, but investors are shooting first and asking questions later when potential opportunities (or threats) emerge.

Time will tell who is right, but for now, the game of AI-whack-a-mole continues. 🎪 

SPONSORED BY NOUVEAU MONDE GRAPHITE
National-Interest Graphite Play Nears FID: Key Contracts Locked

If critical minerals are the new oil, Nouveau Monde Graphite is revving the engine. The North American company has been busy locking in heavyweight contractors ahead of Final Investment Decision for its Phase-2 Matawinie Mine, officially stamped a project of national interest by the Government of Canada. Construction management, civil works, steel sourcing and structures as well as processing tech are now locked. More than 50% of CAPEX is now spoken for, on budget, removing some of the “big project, big risk” jitters. With close to 80% engineering done, permits secured, and the site prepped, $NMG is basically wearing a hard hat and waiting for the financiers’ green light. As critical mineral supply chains reshape around secure, local sources a sustainable, vertically integrated graphite hub is becoming a matter of national sovereignty.

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.

MACRO NEWS
Commodities Kept Up By Geopolitical Tensions 😬 

Trump’s comments that he’s ‘not happy’ with the state of Iran-US talks and that he’d ‘love not to use military force, but sometimes you have to’ pushed already rallying oil prices even higher into the weekend, weighing on risk assets in the process.

Today’s producer price index report came in hotter-than-expected and put a spotlight back on commodity prices. Although tariff concerns have stabilized and kept goods prices moderate, higher energy costs risk broader-based impacts if they remain elevated in the months and quarters ahead. 📊 

With Trump speaking in Texas today about U.S. energy dominance and private-sector investment, it’s clear this will remain a hot-button issue ahead of the midterms. For now, though, the market is calling his bluff and keeping energy commodity and stock prices well bid.

Lastly, precious metals prices closed at their highs this week as the “risk-off” and defensive areas of the market caught a bid. We expand on where traders are finding the next “defensive bid” opportunity down below. 👇️ 

STOCKS
Healthcare Stocks Signal Defensive Posture 🛡️ 

While tech and other growth stocks have been impacted by AI and spending fears, institutional money has been finding places to hide for several months in defensive areas of the market. Consumer staples ($XLP) and utilities ($XLU) led the charge, with real estate ($XLRE) and bonds ($TLT) following suit more recently. 📈 

On today’s radar is the healthcare sector ($ETF), which just closed at its highest level ever, decisively eclipsing its 2024 highs. With many staples and utilities names already extended to the upside, traders are flagging this breakout as the start of a more aggressive rotation into healthcare.

With Stocktwits sentiment neutral and message volume low, it’s clear the masses haven’t caught onto this emerging trend just yet. Heading into a new month and the end of the first quarter, this will be one sector to watch closely. 🧐 

IN PARTNERSHIP WITH NOUVEAU MONDE GRAPHITE
Canada-Germany Deal Spotlights NMG’s Battery Hub Push

Supply chains moved from policy talk to factory floor. As part of a series of international partnerships, Canada and Germany inked a pact to deepen cooperation in autos, batteries, and critical minerals, treated as strategic infrastructure. Fresh off lining up contractors for its Matawinie Mine ahead of FID, $NMG is locking in the downstream piece. The Canadian company added another brick to its vertically integrated playbook, acquiring a brownfield site in Bécancour next to its existing property. With infrastructure already in place, the site optimizes costs, cuts risk, and accelerates time to market, including battery-materials supply for Panasonic Energy. $NMG is on track to become one of the largest integrated graphite producers in the G7. Translation for investors: Matawinie feeds the pipeline, Bécancour captures the value, turning critical mineral ambition into industrial reality.

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here. 

ST VIDEO
An Exclusive Interview With Tom Sosnoff 🤩 

ST MEDIA
Top Stocktwits Stories 🗞️ 

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• Coreweave slumps after more than doubling its CAPEX projections

• Block layoffs ignite online debate: AI disruption or bad management?

• SoundHound slumps after earnings, but retail is sticking with it

• ImmunityBio surges amid bets on Saudi funding and Trump tailwinds

• Warner Bros. Discovery inks $110 takeover deal after Netflix walks

Don’t miss a story! Follow @StocktwitsNews for a live feed in real time. ✍️ 

Links That Don’t Suck 🌐

⛔️ Trump admin blacklists Anthropic as AI firm refuses Pentagon demands

😋 Beyond Meat Stock Breaches $1 Amid Launch Of New Flavors In Beverage Line

📱 What social media addiction looks like, according to the woman suing Meta and YouTube

🏠️ Mortgage rates hit lowest level in nearly 4 years, but homebuyers are still stuck on the sidelines

🚘️ State Farm announces $5 billion dividend; $100 average refund coming to car insurance customers

*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here. 

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