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Index Update

In extended trading, Alphabet's stock dropped over 7% after missing revenue expectations for its cloud business, while AI investments impacted cash flow. Chipotle fell 5% due to weaker same-store sales, and Snap rose 6% after strong results. The Dow, S&P 500, and Nasdaq gained, while Palantir surged 24% on positive earnings and guidance. Investors are watching upcoming earnings reports and global trade developments.

Market Movers

On Tuesday, the top gainers were Alpha Modus Holdings, Inc. (+22.99%), followed by Palantir Technologies Inc (+22.24%). On the contrary, Calumet, Inc (-8.62%) and  PayPal Holdings, Inc (-8.11%) declined the most the same day.

Commodities Update

Brent crude oil futures declined toward $75 per barrel as escalating U.S.-China trade tensions raised concerns over global demand. China’s newly announced tariffs on U.S. imports, including a 10% levy on crude oil, added to market uncertainty. Meanwhile, OPEC and its allies maintained production levels despite U.S. pressure to increase supply and curb oil prices.

Macro Update

The dollar index dropped below 108 on Wednesday, extending losses as the Trump administration's tariff actions and China's retaliatory measures were less severe than expected. Trump delayed 25% tariffs on Mexico and Canada but imposed 10% tariffs on China, prompting a mild response from Beijing. Hopes for de-escalation and a potential phone call between Trump and Xi Jinping raised optimism, while the outlook for Federal Reserve rate cuts remains uncertain amid evolving trade policies.

Futures Update

US stock futures fell on Wednesday after Alphabet, the parent company of Google, reported weak earnings. On February 5th, Bitcoin traded at 97,993 USD, up 0.24% from the previous session. Over the past four weeks, Bitcoin gained 4.14%, and its price increased by 127.08% over the last 12 months.

On Tuesday, stocks generally advanced, largely reversing the losses from the previous day. The major indexes all gained ground, with the tech-focused Nasdaq taking the lead. By the end of the session, the major averages were just shy of their highest points of the day. The Nasdaq surged by 262.06 points, or 1.4%, reaching 19,654.02, while the S&P 500 rose by 43.31 points, or 0.72%, finishing at 6,037.88. From a technical standpoint, the S&P 500 faced resistance at critical levels, resulting in a slight downward trend and increasing the likelihood of a short-term decline. The Relative Strength Index (RSI) is currently around the midpoint, indicating the potential for a pullback. Market analysts are closely monitoring important price levels, with $6,100 identified as a possible resistance level and $5,900 serving as support.

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