Market Drama
Featuring Zoe CEO & Founder, Andres Garcia-Amaya, CFA
February 3rd, 2025
Watch Time: 2.4 minutes
Welcome to this week’s Market Drama!
Stock Market Update:
- S&P 500: Down 1% for the week.
- Nasdaq: Down 1.6% for the week.
- DeepSeek (Chinese AI company): Released an open-source language model that reportedly requires less energy and processing power than leading competitors.
- Nvidia: Fell 17% last Monday, losing over $500 billion in market cap—the largest single-day loss on record. This impacted the broader AI sector and the market as a whole.
- Q4 Real GDP: Grew 2.3% annualized, slightly below the 2.4% expectation.
- Consumer Spending: Grew 4.2% annualized, a key figure given that it accounts for 68% of GDP.
- Earnings: 40% of the S&P 500 market cap reported last week.
- Notable beats from Meta and Apple helped lift the market from earlier lows.
- FOMC Meeting: The Fed left interest rates at 4.25%–4.50% and stated they will not consider rate cuts until inflation shows further declines.
Next Week:
- ISM Manufacturing PMI Data
- January Nonfarm Payrolls Report
Stay tuned for next week.
– Andres
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