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Market Summary

Markets traded cautiously ahead of Friday’s jobs report and an expected Supreme Court tariff ruling. The S&P 500 drifted, Nasdaq lagged as tech pulled back, and the Dow outperformed on defense and energy strength; volatility ticked higher as investors rotated into cyclicals and priced policy risk.

The fatal Minneapolis shooting by an ICE officer has quickly become a national flashpoint, with the agent identified and his courtroom testimony surfacing. Protests and political demands for accountability are mounting as video and official statements circulate.

Figure of the Day

7.1B – GM’s fourth‑quarter EV and China restructuring charge.

Federal agents shot two people in Portland during an enforcement operation, prompting an FBI investigation and local alarm. Details remain fluid as city officials and federal authorities trade statements.

The White House framed recent enforcement actions as coordinated attacks on federal officers, escalating tensions with local leaders. Minnesota’s governor has demanded state involvement in the investigation amid broad public anger.

Bullish

Samsung Profit Triples on Memory Boom – Q4 Surge

Samsung reported a sharp rebound as memory prices surged, driving Q4 operating profit to a multi‑quarter peak and lifting supplier sentiment across semiconductors.
More on japantimes.co.jp

The White House is pushing a high‑stakes plan to attract oil investment in Venezuela, with Trump touting large pledges from industry. Senior administration meetings with major oil firms aim to translate rhetoric into contracts.

Congress moved to rein in further U.S. military strikes in Venezuela with a rare bipartisan rebuke of the president. The Senate’s war‑powers votes signal growing legislative resistance to unilateral military action.

Bearish

Saks Nears Bankruptcy as Financing Falters

Saks Global is struggling to secure rescue financing and faces a potential Chapter 11 filing as creditor negotiations stall and liquidity tightens.
More on wsj.com

The White House ordered an aggressive mortgage‑bond buying push aimed at lowering U.S. mortgage rates, promising a $200 billion program. Markets and housing lenders are parsing the implementation risks and legal constraints.

A looming Supreme Court decision on Trump’s tariffs is rattling markets and corporate importers. Traders and legal teams are bracing for a ruling that could reshape tariff refunds and US trade policy.

Regulatory Impact

White House orders a $200B mortgage‑bond purchase program and announced withdrawals from dozens of international bodies; Congress is advancing measures to curb unilateral military action in Venezuela and regulators are intensifying tech and antitrust reviews.

Friday’s jobs report is poised to be the first major market stress test of 2026, with payrolls and unemployment set to influence Fed path. Investors expect volatility as data will shape rate‑cut bets and equity positioning.

General Motors warned of massive charges tied to a pullback from electric‑vehicle plans and China restructuring, signaling a strategic reset. The writedowns underscore broader industry recalibration on EV profitability.

Quote

This was a tragedy of her own making.

— Vice President JD Vance

Nvidia is beefing up marketing as AI competition intensifies, recruiting senior Google Cloud talent to lead outreach. The hires reflect a push to translate technical dominance into broader customer wins.

China has opened reviews into Meta’s acquisition of AI startup Manus, highlighting rising regulatory scrutiny of foreign tech deals. The probes complicate cross‑border dealmaking in AI and raise compliance risks for buyers.

Snowflake is buying observability startup Observe to shore up reliability for AI‑driven customers, aiming to reduce downtime risks. The acquisition fits a larger wave of data‑ops deals as companies race to support agentic AI.

Elon Musk’s xAI is burning cash rapidly while planning vast infrastructure, raising questions about funding and timelines. The company is both scaling data centers and stretching investor patience as losses mount.

Chinese AI unicorns continue to debut in Hong Kong as investor appetite for model developers stays strong. MiniMax’s oversubscribed offering underscores robust capital flows into Asia AI plays.

Regulatory scrutiny and market conduct are in focus as a regulator says Bank of America shared confidential details ahead of a block trade. Meanwhile, New York’s attorney general is probing Instacart’s algorithmic pricing tests.

Widespread protests in Iran have triggered national internet shutdowns as authorities try to contain unrest. Strikes in the oil sector and mass demonstrations are raising geopolitical and energy market worries.

Glencore and Rio Tinto have resumed merger talks that could reshape the global mining landscape and accelerate consolidation for critical metals. The discussions reflect strategic moves to secure copper and other materials for the energy transition.

CrowdStrike’s planned acquisition of SGNL underscores how cybersecurity firms are consolidating to address identity and AI‑era threats. The deal positions CrowdStrike to broaden its platform as enterprise attack surfaces evolve.

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