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January 31, 2025

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The week started with a wild ride when DeepSeek created a bizarre “deep sink” day in the stock market. NVIDIA Corp. (NVDA) was one of the most actively traded stocks, closing lower by 16.97%. The stock lost $593 billion in market cap, which, according to Barron’s, is the most market value a stock has lost in a single day. There was a lot of talk suggesting the semi-bubble may have burst.

The release of DeepSeek R1, an AI tool that appears to be much more efficient than other large language models caused NVDA’s stock price plunge. This raises questions about the need for expensive hardware that NVDA and its competitors provide. Reduced hardware needs would mean less spending on AI infrastructure, impacting employment and, ultimately, the economy.

Despite the massive selloff in semiconductor stocks, other areas didn’t feel as much pain. The Dow Jones Industrial Average ($INDU) closed higher, the S&P Equal Weighted Index ($SPXEW) closed up 0.02%, and seven of the 11 S&P sectors closed in the green. The top-performing sectors were Consumer Staples, Health Care, and Financials (see image below). Out of the Mag 7 stocks, Meta Platforms (META), Apple (AAPL), and Amazon (AMZN) closed higher. These companies would benefit greatly from the implementation of AI tools.

However, Monday’s selloff may have been overhyped because, on Tuesday, the narrative shifted. The chart below shows how the S&P 500 ($SPX) bounced off its 21-day exponential moving average (EMA).

FIGURE 1. S&P 500 BOUNCES BACK. A bounce off its 21-day EMA and improving breadth suggests the S&P still has legs.Chart source: StockCharts.com. For educational purposes.

Interestingly, the NYSE New 52-week highs outnumbered the New 52-week lows on Monday. This should have indicated that Monday’s selloff could be a short-lived overreaction.

Overall, the uptrend in the S&P 500 has not suffered much harm, but considering it’s close to its top, a little hesitancy to continue higher is healthy.

The Nasdaq Composite still has a little work to do before confirming its bull trend. An upside follow-through and improving breadth would confirm a bullish trend (see chart below).

FIGURE 2. NASDAQ COMPOSITE NEEDS A LITTLE MORE UPSIDE FOLLOW-THROUGH. Improving breadth indicators and a continuation to the upside would confirm the Nasdaq’s bullishness.Chart source: StockCharts.com. For educational purposes.While the index broke above its downward-sloping trendline connecting the lower highs, Monday’s price action broke that trajectory. Investors should look for the Nasdaq to resume an uptrend—a series of higher highs and higher lows. The Nasdaq Composite Bullish Percent Index (BPI) is shy of 50, about 45% of Nasdaq stocks are above their 200-day moving average, and the Nasdaq Advance-Decline Line is still not convincingly bullish. The Nasdaq is still at a crossroads, but it has a lot of damage to overcome.

The Dow Jones Industrial Average ($INDU), which was running behind, has caught up with the other indexes and is getting very close to its all-time high. Its breadth is also strengthening—a respectable BPI of 63.33, a rising Advance-Decline Line, and 25% of Dow stocks above their 200-day simple moving average.

FIGURE 3. DOW JONES LEADS THE INDEXES. The Dow is looking the most bullish of the three indexes.Chart source: StockCharts.com. For educational purposes.

The Bottom Line

Investors should always worry about protecting their portfolios, so it shouldn’t be surprising that negative news sent investors into a panic-selling mode. Profit-taking from a strong stock performer such as NVDA is a natural reaction. After getting slammed beyond belief on Monday, NVDA’s stock price recovered on Friday, closing higher by 8.82%. It hasn’t recovered all its losses, but Tuesday’s move is encouraging.

Wednesday will be an eventful day. There’s the Fed meeting and Tech earnings are in full swing. Microsoft Corp. (MSFT), Meta Platforms (META), and Tesla, Inc. (TSLA) report quarterly earnings after the close. META closed at an all-time high, MSFT closed higher and recovered from Monday’s loss, and TSLA closed slightly higher. Will the upward move continue?


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

Khamis and Ahmad Imarah knew they wouldn’t find much more than rubble when returning to their home in northern Gaza. But they had to go. Their father and brother are still buried under the debris, more than a year after their home was struck by Israeli forces.

“I don’t want anything else. What I am asking for is to find my father and brother and that’s it, that’s all.”

The Gaza Government Office said Wednesday that some 500,000 displaced Palestinians — almost a quarter of the enclave’s population — had made the journey to the decimated north in the first 72 hours after Israeli forces opened the Netzarim corridor, which separates it from the south.

The two Imarah brothers walked 11 kilometers (6.8 miles) to reach Al-Shujaiya, a treacherous journey they made with several small children. They found their home almost completely gone, with just one room still partially standing.

Rummaging through the rubble, Khamis came across his mother’s green knitting bag, with a couple of balls of yarn and two crochet hooks still inside, as if she had only just put it down.

Khamis and Ahmad’s mother was injured in an Israeli strike and was later evacuated to Egypt, one of the few Palestinians allowed to leave the strip to get medical treatment before Israel closed the Rafah crossing between Gaza and Egypt in May 2024. The United Nations Office for the Coordination of Humanitarian Affairs (OCHA) said that only 436 patients, most of them children, had been allowed to be evacuated since May, out of the estimated 12,000 who urgently need medical evacuation.

Israeli military strikes have turned most of Gaza to rubble. According to the UN, some 69% of all structures in the strip have been destroyed or damaged in the past 15 months, with Gaza City the worst hit.

Returning after more than a year

Israel forced most residents of northern Gaza to leave the area early in the war, issuing evacuation orders and telling people to move south. Once people left, return was impossible, meaning that most of those coming back this week are doing so for the first time in more than a year. And while nine in 10 Gaza residents have been displaced during the war, those forced to flee the north have been homeless for the longest.

“You enter from one neighborhood to another and it’s all mounds of rubble that have not been cleared … and there were martyrs on the way, on the road where, until today, no one has picked them up. There are fresh bodies and bodies that have (decomposed) as well,” Khamis said.

He urged others looking to make the journey back north to reconsider. “Because there is no water, no electricity or even food, no tents, you sleep in the rubble,” he said.

Mohammad Salha, director of Al-Awda Hospital in Tal Al-Zaatar, said there is currently no space in northern Gaza to establish camps for displaced people returning home. The area was densely built-up before the war and the enormous scale of damage means there are now huge mountains of rubble and debris everywhere.

The situation in the north is so dire that some of those who have made the journey have had little choice but to turn back and return to the refugee camps down south.

Arwa Al-Masri, who was displaced from Beit Hanoun in the northeastern corner of the strip, said the men from her family went home in the past few days to see what is left of their houses.

But while she and her children cannot yet go back to her home in the north — or what remains of it — Al-Masri’s stay at the shelter is also uncertain, because of impending bans on UNRWA operations within Israel and on the prohibition of Israeli authorities from cooperating with UNRWA.

‘No one is left’

Discovering that the place they once called home was almost completely gone was just the latest in a series of heartbreaks Khamis and Ahmad Imarah have suffered over the past 15 months.

The two brothers said that of the 60 members of their extended family, only 11 have survived the war.

The family fled Al-Shujaiya after receiving text messages from the Israeli military telling them to leave the area. Khamis said the whole family — his brother and sisters and their in-laws — went to his brother’s house in Al-Mughraqa, just south of the Netzarim corridor.

“It was afternoon prayers time when our house in Al-Mughraqa was hit by a strike. I still don’t know how I got out of the house,” he said.

At one point during the interview, Ahmad’s son Walid came by. Asked by his father where his mom was, the child pointed up to the sky.

“Why did they tell us to go south? Imagine a four-year-old boy telling you here is my mother and here is my aunt, (their bodies) all ripped in pieces in front of him. I covered his face and he was screaming. His aunts, and uncles, his grandfather and an uncle, no one is left,” he said.

“We were very happy. I wish I had a picture of my newborn but I don’t have any. I waited a long time to have my daughter and then her and her mom vanished together,” he said, adding that their graves were destroyed by the Israeli military just days after the family buried them.

“You take them and bury them in the cemetery and then when you go a few days later to see the cemetery, you don’t find them because they have been erased by the bulldozers. The (Israeli forces) didn’t leave anything. Even the martyrs and the bodies they have dug up. They didn’t leave a thing,” he said, looking around the destroyed neighborhood.

“We came back to the north for nothing,” he said. But he quickly added that he was determined to stay and rebuild. “I am from Gaza and I won’t leave. Even if it was harder and more difficult than this, I want to live in Gaza and I won’t leave it. I will only leave Gaza to go to Heaven,” he said.

US President Donald Trump last week suggested Gaza should be “cleaned out” by removing Palestinians living there to Jordan and Egypt — either on a temporary or permanent basis.

The comment sparked outrage and rebuke across the Middle East, with both Egypt and Jordan rejecting the idea.

“This is ingrained in our minds, we will stay. We will not leave this place, because this land is not ours but our grandparents’ and our ancestors’ before us. How am I supposed to leave it? To leave the house of my father, and grandfather and brothers?” he said.

This post appeared first on cnn.com

Tesla’s fourth-quarter earnings report lands just over a week after President Donald Trump began his second term in the White House, with Elon Musk right by his side.

Now that the Tesla CEO is firmly planted in Washington, D.C., in a high-profile advisory role, shareholders in the electric vehicle maker have some questions.

On the forum Tesla uses to solicit investor inquiries in advance of its earnings calls, more than 100 poured in from shareholders about Musk’s politics, including his official role at Trump’s Department of Government Efficiency (DOGE) and his endorsement of far-right candidates.

“How much time does Elon Musk devote to growing Tesla, solving product issues, and driving shareholder value vs. his public engagements with Trump, DOGE, and political activities?” one retail investor asked, adding, “Do you believe he’s providing Tesla the focus it needs?”

In addition to contributing $270 million to help Trump and other Republican candidates and causes, Musk spent weeks on the campaign trail during the fourth quarter working to propel Trump back into the White House. After Trump’s election victory, Musk then spent considerable time far away from Tesla’s factory floor at Trump’s Mar-a-Lago resort in Florida.

One of the top-voted questions about Musk asked how much time he intends to spend “at the White House and on government activities vs time and effort dedicated to Tesla.”

Musk and Tesla didn’t immediately respond to a request for comment.

Musk has also involved himself in German politics, giving a full-throated endorsement of the country’s far-right, anti-immigrant party AfD (Alternative für Deutschland) in December ahead of the February election.

According to research and consulting firm Brand Finance, the value of Tesla’s brand fell by 26% last year, with factors including Musk’s “antagonism,” Tesla’s aging lineup of EVs and more. The researchers found that fewer consumers would recommend or consider buying a Tesla now than in previous years.

During public remarks following last week’s inauguration, Musk repeatedly used a gesture that was viewed by many historians and politicians as a Nazi salute. Ruth Ben-Ghiat, whose scholarship has focused on fascism, described it as “a Nazi salute and a very belligerent one,” while neo-Nazis praised Musk for his antics.

A shareholder on Say asked, “Will you apologize for the misunderstanding that occurred when you made the hand gesture thanking folks for their support. It would go a long way with your investors and the American public at large. Thanking you in advance Elon!”

In response to the criticism, Musk said anyone calling the salute a hateful gesture was pushing a “hoax.” But after that, he engaged in Nazi-themed word play on X, prompting the Anti-Defamation League to rebuke him, writing it is “inappropriate and offensive to make light” of the “singularly evil” Holocaust. And Musk later appeared via video at a rally for the AfD in Halle, Germany.

Some investors asked whether Tesla had “sales lost due to political activities of Elon,” how the company plans “to respond to Musk’s now infamous Nazi salute,” and how Tesla “is addressing the negative impacts of Elon’s public views and activities.”

But Tesla is under no obligation to bring any of these topics up on the earnings call. Ahead of the third-quarter call in October, investors had a lot of questions and concerns about similar issues regarding Musk’s involvement in politics, though that was before Trump’s election victory.

Trump was never mentioned on that call.

This post appeared first on NBC NEWS