OVERVIEW
The Weekend Rip: February 02, 2025

Source: Tenor.com

Tariffs were the talk of the town this week, with Trump’s actions against Mexico, Canada, and China causing market turbulence. 🎯 

Let’s recap and prep you for the week ahead. 📝

What Happened?

😨 On Monday, DeepSeek AI fears slammed the U.S. stock market. China’s DeepSeek wiped out $589 billion in Nvidia market cap and over $2 trillion from U.S. stocks. Still, retail investors remained optimistic, with 71% of Stocktwits users polled naming Nvidia as their top pick to “buy on the dip.”

◀️ On Tuesday, the market reversed Monday’s action as investors digested the news and prepared for the Fed’s decision and “Mag Seven” earnings. Starbucks’ earnings report indicated there’s still a lot of work for the coffee giant to do, and two special guests joined “Trends With Friends.”

⏸️ On Wednesday, the Fed paused its rate cut cycle while 3 of the 7 “Mag Seven” reported results. Trump turned the heat up on Fed Chairman Jerome Powell, Tesla, Microsoft, and Meta reported results, and earnings drove many major moves.

🥇 On Thursday, stocks rebounded, but gold and precious metals stole the show. Apple jumped despite missing expectations for iPhone sales, Trump turned up his tariff threats, and crypto’s bullishness went mainstream.

🔻 On Friday, stocks slipped from their highs as Trump implemented tariffs earlier than anticipated. Energy stocks fell as their earnings continued to fall from their peak, driven by weakness in refining. Plus, we launched our first weekend “Trade Competition” with real cash prizes.

😐️ This week’s Stocktwits Top 25 underperformed the major indexes.

Here are the closing prices: 

Bullets From The Weekend 📰

⛔️ EU bans AI systems with ‘unacceptable risk.’ The European Union’s (EU) regulators can now ban the use of AI systems they deem to pose ‘unacceptable risk’ or harm under the EU’s comprehensive AI regulatory framework passed last March. Any company found using any of the restricted AI applications in the EU will be subject to fines, regardless of where they are headquartered. Some analysts say these practices are generally not occurring anyway and may not go far enough, given how quickly the technology is developing. TechCrunch has more.

🌶️ Chili’s has become America’s hottest restaurant. According to parent company Brinker International’s latest report, sales at Chili’s restaurants open for at least a year rose 31% YoY last quarter. Foot traffic soared 20%, helping drive the sales. This is a stark contrast to other restaurants that previously raised their prices to offset falling traffic. Its upgraded French fry and chicken tender recipes have driven viral TikTok videos, plus its focus on providing value via $6 margaritas, $10.99 meal deals, and other promotional activities have customers crawling back. More from CNN Business.

⚡️ Honda ramps up EV investment with $1 billion in Ohio. The Japanese automaker’s next generation of manufacturing is starting in Ohio, where it plans to install six “giga press” and a new “cell” manufacturing system for its upcoming electric vehicle battery cases. Such important manufacturing changes would typically be rolled out in its home country first. However, as more companies look to diversify their operational footprints and geopolitical risks, the U.S. is increasingly becoming a place to lay down EV industry roots. CNBC has more.

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THE BRIEF

Need a concise summary of what’s going on this week? Look no further. Here’s a rundown of this week’s earnings and economic data.

Economic Calendar

Source: TradingEconomics.com

It’s a busy week of economic data, with investors focused on U.S. labor market data and Fed member speeches. In addition to the above, check out this week’s complete list of economic releases.

Earnings This Week

Earnings season is in full swing, with roughly 493 companies reporting this week.

Source: Stocktwits.com

Above is a quick summary. Check out the full Stocktwits earnings calendar for the other names reporting this week.

COMMUNITY
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We’re also hiring a crypto community manager, director of data sales, and business development representative (advertising sales). You can view and apply to all our open roles here. We look forward to chatting with you soon!

Links That Don’t Suck 🌐

📚️ Join a free 2-hour online workshop on 2/8 to learn investing strategies from IBD’s market experts*

🪙 The penny vs. Elon Musk

📱 What will happen to TikTok? A look at the potential buyers

🐔 On the frontline against bird flu, egg farmers fear they’re losing the battle

🥦 Winging it for the Super Bowl? Broccoli might be a cheaper party snack this year

😡 Elon Musk’s X sues Lego, Nestlé and more brands, accusing them of advertising boycott

🏘️ The 10 most popular U.S. ZIP codes for homebuyers—No. 1 is a fast-growing Houston, Texas suburb

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

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