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Market Moves Yesterday
S&P 500 @ 5,614.66 ( ⬇️ 1.07%)
Nasdaq Composite @ 17,504.12 ( ⬇️ 1.71%)
Bitcoin @ $83,448.42 ( ⬆️ 0.33%)
Hey Scoopers,
Happy Wednesday! Are you ready to tackle the midweek mania?
👉 Google’s big-ticket purchase
👉 All eyes on the Fed
👉 Strategy expands its BTC reserve
So, let’s go 🚀
Market Wrap
Wall Street resumed its downward trend Tuesday after a brief two-day rally, with all major indexes falling.
The S&P 500 dropped 1.07% to 5,614.66, bringing it close to correction territory at 8.6% below its February high. The Dow shed 0.62%, while the tech-heavy Nasdaq tumbled 1.71%.
Tech stocks led the decline, with Tesla falling over 5% after RBC Capital Markets lowered its price target, citing increasing EV competition. Palantir and Nvidia also dropped nearly 4% and 3% respectively.
Market experts suggest this represents a rotation away from previously strong performers. "The market really does want to rotate into things that haven't worked as well," noted Rhys Williams of Wayve Capital.
Investors are navigating several concerns:
Trump's pending tariff decisions
The Federal Reserve's policy meeting
Recent soft economic data
Despite recent volatility, analysts don't anticipate an imminent recession.
Elon Dreams, Mode Mobile Delivers
As Elon Musk said, “Apple used to really bring out products that would blow people’s minds.”
Thankfully, a new smartphone company is stepping up to deliver the mind-blowing moments we've been missing.
Turning smartphones from an expense into an income stream, Mode has helped users earn an eye-popping $325M+ and seen an astonishing 32,481% revenue growth rate over three years.
They’ve just been granted the stock ticker $MODE by the Nasdaq, and you can still make an investment in their pre-IPO offering.
Trending Stocks 🔥
Gilead Sciences - The stock is down 3% in pre-market after a WSJ report stated that the Health and Human Services Department is considering plans to significantly cut the federal government’s funding for domestic HIV prevention. That could affect Gilead’s business, as the drugmaker sells medicines for HIV and AIDS.
HealthEquity - Shares of the health administration company are down over 12% after it reported revenue of $311.8 million with adjusted earnings per share of $0.69 compared to estimates of $305.8 million and $0.72 per share, respectively.
Palantir - The tech stock slumped 4% after Jefferies reiterated the defense technology stock as underperform, saying valuation remains a concern.
Google Acquires Wiz
Google has signed a definitive agreement to acquire cloud security startup Wiz for $32 billion in an all-cash transaction, marking the tech giant's largest acquisition ever.
The deal is expected to close in 2026, and Wiz will become part of Google Cloud.
This agreement comes after Wiz withdrew from Google's $23 billion offer last year, citing antitrust and investor concerns.
At that time, Wiz co-founder Assaf Rappaport indicated the company would pursue an IPO instead.
Founded in 2020, Wiz has seen remarkable growth, reaching $100 million in annual recurring revenue in just 18 months.
The acquisition significantly enhances Google's security capabilities amid increasing AI and cybersecurity challenges.
"Becoming part of Google Cloud is effectively strapping a rocket to our backs," Rappaport stated in a blog post.
Google confirmed that Wiz's products will continue to work on competitor platforms, including AWS, Azure, and Oracle Cloud.
The Fed Likely to Hold Rates
During this week's meeting, the Federal Reserve is widely expected to maintain interest rates at the current 4.25%-4.5% range while possibly adjusting its economic outlook and future rate cut projections.
Fed officials, led by Chair Jerome Powell, have consistently advocated a patient approach in recent weeks, emphasizing there's "no need to be in a hurry" as they seek clarity on President Trump's trade and fiscal policies.
Market watchers will focus on the Fed's quarterly projections for GDP, inflation, unemployment, and the "dot plot" of interest rate expectations.
Economists suggest the Fed might raise its 2025 inflation outlook while lowering GDP projections.
There's significant debate about whether the Fed will maintain its December forecast of two rate cuts this year or reduce that number.
Concerns over potential tariff-fueled inflation could discourage officials from easing monetary policy.
Markets anticipate one or two more quarter-point cuts by year-end, with the first reduction expected no earlier than June.
Strategy Resumes BTC Purchases
Michael Saylor's Strategy has resumed its Bitcoin accumulation, purchasing 130 BTC for $10.7 million at an average price of $82,981 per coin.
Though this marks the company's smallest acquisition since beginning its Bitcoin strategy in 2020, it brings the firm's total holdings to 499,226 BTC—approximately 2.4% of Bitcoin's total supply.
The purchase was funded through the company's new "STRK ATM" program, which allows Strategy to sell shares directly into the secondary market.
This initiative is part of the firm's ambitious plan to raise $42 billion over three years to expand its Bitcoin holdings significantly.
Strategy remains the largest corporate Bitcoin holder, with holdings now valued around $41.4 billion.
Despite market fluctuations, the company's Bitcoin yield stands at 6.9% year-to-date, though below its 15% target for 2025.
Headlines You Can't Miss!
Tencent’s Q4 profits surge 90%
China markets are set to outperform Wall Street
BoE expected to keep interest rates steady
Nvidia announces new AI chips
The mood on Wall Street is grim
Chart of The Day
Meme of the Day
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.