Chasing Highs: FOMO Players Take the Stage 02/10/2025

HOT stories for today

US market wrap:

• The S&P 500 closed at a new record on Wednesday, rising 0.34% to 6,711.20 after hitting an intraday high. The Nasdaq gained 0.42%, and the Dow edged up 0.09%. The rally marked a rebound from earlier losses of 0.5%, led by strength in health-care stocks. The shutdown followed failed Senate efforts to pass a stopgap bill, with Democrats pushing to include health-care tax credit extensions.
• “The market doesn’t seem rattled,” said Louis Navellier of Navellier & Associates, noting momentum remains positive. While markets have often shrugged off past shutdowns, economists warn this one could carry more risk as the Fed, expected to cut rates again soon, faces limited data during the closure.

Rally on Edge: Why a Selloff Could Be Next

• Stocks and bitcoin may look unstoppable, but market veteran Jeffrey Bierman says investors are getting lulled into dangerous complacency. He warns the S&P 500 could crack as soon as this month, with a break below 6,350 opening the door to a slide toward 5,700. Bitcoin, meanwhile, risks a nasty correction to $80,000, or even $50,000 if panic selling sets in.
• Gold’s record run is flashing red for equities, suggesting dollar weakness and fading confidence in risk assets. Bierman argues that record margin debt, stagflation fears, and Fed policy missteps add fuel to the fire. His advice: resist FOMO, hedge your bets, and rotate into overlooked sectors like energy, staples, and REITs before the “hot money” unravels.

Stocks on the move:

• Bank stocks: Financials traded lower as investors assessed the potential economic fallout from the U.S. government shutdown. JPMorgan Chase (JPM) and Goldman Sachs (GS) each slipped about 0.6%, Wells Fargo (WFC) declined 0.8%, and Citigroup (C) lost 1%.
• AES (AES): The power producer surged 11% after the Financial Times reported that BlackRock-owned Global Infrastructure Partners is in advanced talks to acquire the Virginia-based utility.
• Ford (F): Shares gained more than 1% midday Wednesday after the automaker posted an 8.2% rise in third-quarter sales, driven by strong demand for EVs and large SUVs.
• Drugmakers: Pharma stocks extended their rally as traders anticipated further agreements with the Trump administration. Pfizer (PFE), Merck (MRK), Eli Lilly (LLY), and Amgen (AMGN) each climbed around 6% after Pfizer secured a three-year tariff exemption tied to U.S. manufacturing investment and Medicaid drug discounts.

Watchlist: PEP, NVDA, RDDT, LLY, PFE, JPM, F, SMCI, INTC

Today’s action

• South Korea’s Kospi surged over 3% Thursday to a record high, boosted by Samsung Electronics [005930.KQ] and SK Hynix [000660.KQ]. In Japan, the Nikkei 225 rose 0.6% while the Topix slipped 0.54%. Markets in China and India remained closed for holidays.
• U.S. futures were steady after the S&P 500 hit another record and investors brushed off shutdown concerns. Dow futures dipped 30 points (-0.06%), S&P 500 futures eased 0.04%, and Nasdaq 100 futures were flat. The government shutdown means no September jobs report on Friday, as the Labor Department halts most operations.

Bitcoin

• Bitcoin (BTC) jumped 4% to $119,450, its highest in seven weeks, as Fed rate cut bets and October’s bullish history lifted the crypto market. Still, the gains look fragile, with traders eyeing political turmoil in Washington that could outweigh technical momentum.
• Altcoins rallied as well, with Solana (SOL), XRP (XRP), and Dogecoin (DOGE) each climbing more than 5%, leading a strong move across the sector.
  Watchlist: Bitcoin: 98 000-125 000, Ethereum: 4000-4980, Solana: 180-240
   

Forex

• EUR/USD traded modestly higher near 1.1735 in Thursday’s Asian session as the U.S. government shutdown weighed on the dollar. The halt has already delayed key data, including weekly jobless claims, while Fed Governor Cook is set to remain in her role until January.
• USD/JPY hovered near a two-week high, with the yen supported by expectations the Bank of Japan will stay on its tightening path, contrasting with Fed rate cut bets. Still, domestic political uncertainty and a firmer risk tone could limit safe-haven demand for the JPY.
  Watchlist: EUR/USD: 1.0700-1.1880, USD/JPY: 140-151

Basic Materials

• Gold (XAU/USD) steadied near $3,853 on Thursday, pausing just below record highs after a brief dip in Asian trade. Fed rate cut expectations continue to pressure the dollar and underpin gold, but overbought conditions and a firmer risk tone in equities are keeping bulls from extending gains.
• WTI crude (WTI) traded around $61.90 in the Asian session, drawing modest support despite a 1.792 million barrel build in U.S. crude inventories last week, according to the EIA. Geopolitical risks and uncertainty over the U.S. government shutdown kept traders cautious.
  Watchlist: GOLD: 2600-3880, US Oil: 55.60-75.80

Key Economic Events Today:

EST time

10:30 am: USD FOMC Member Logan Speaks


Earnings

BMO (Before Market Open):

No major earnings today!



The TEFS Analyst team wishes you a successful day!