Investors kicked off the week with optimism as Donald Trump’s inauguration signalled a renewed push for pro-business policies in his second term. The spectacle at the Capitol Rotunda underscored his intent, placing billionaire tech leaders—some previously vocal critics—front and centre. With promises of regulatory rollbacks and tax cuts, the US stock market has surged since the November 5th election, reflecting investor confidence in Trump’s economic approach.
Wasting no time post-ceremony, Trump executed 50 executive orders, including declaring a national emergency at the southern border, imposing a public-sector hiring freeze, and directing the Secretary of State to prioritise an America First agenda. Among the most significant announcements was Stargate, a $500 billion artificial intelligence (AI) infrastructure initiative, with backing from OpenAI, Oracle, and SoftBank.
However, the AI rally was short-lived. A Chinese AI chatbot, DeepSeek, went viral over the weekend, triggering a brutal sell-off in major US AI stocks. Nvidia, a dominant player in the sector, saw its shares plummet by 17%, wiping out $589 billion in market value—the largest single-day loss in US stock market history. DeepSeek’s developers claim they built the open-source model in just two months for under $6 million using lower-grade Nvidia chips, a revelation that could disrupt the spending trajectory of US tech giants investing heavily in AI.
European markets, often overshadowed by America’s tech boom, saw strong performances from standout companies. Novo Nordisk, now Europe’s most valuable company, gained 8% on Friday following promising trial results for its weight-loss drug amycretin, which demonstrated similar efficacy to Eli Lilly’s Zepbound. If successful in late-stage trials, the drug could hit the market by 2028, further cementing Novo Nordisk’s dominance in the sector.
Diageo shares also saw an uplift amid reports of a strategic review of its drinks portfolio. Speculation suggested possible divestitures of underperforming brands like Ciroc Vodka and Pimm’s, though the company firmly denied any plans to sell Guinness or its stake in Moët Hennessy. Despite Friday’s rally, Diageo’s stock remains under pressure after three years of consecutive declines, as shifting consumer habits and a US health advisory linking alcohol to cancer weigh on sentiment.
In the commodities market, Brent crude tumbled $3 to $77 a barrel after Trump reaffirmed his commitment to ramping up US oil production with his signature slogan: “drill, baby, drill.” Speaking via video link at the World Economic Forum in Davos, he further threatened tariffs on OPEC nations unless they moved to lower oil prices, adding pressure to the energy sector.
Looking ahead, investors are set to scrutinise Big Tech earnings this week, with Microsoft and Meta reporting on Wednesday, followed by Apple on Thursday. Additionally, central bank decisions will take centre stage, with the European Central Bank expected to announce a quarter-point rate cut, marking another pivotal moment for global markets.
Novo Nordisk continues to revolutionise the pharmaceutical industry with its innovative treatments for diabetes and obesity. Diageo remains a global leader in premium spirits, with a diverse portfolio spanning whisky, beer, and luxury beverages. Nvidia, despite recent volatility, stands at the forefront of AI and semiconductor advancements, driving the future of computing.
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