Market Recap
On Friday, the S&P 500 closed at 6,025.99, down 0.95%, while the NASDAQ fell 1.36% to 19,523.40. The Dow Jones Industrial Average declined 0.99%, ending the session at 44,303.40.
For the week, the S&P 500 gained 0.94%, the NASDAQ rose 1.6%, and the Dow remained relatively flat, edging up 0.08%. Meanwhile, small caps, represented by the Russell 2000, advanced 1.55%, finishing at 2,279.71.
On Tuesday, President Donald Trump agreed to delay the implementation of a 25% tariff on imports from Canada and Mexico for one month following agreements with both countries to enhance border security. Canadian Prime Minister Justin Trudeau announced a $1.3 billion initiative to strengthen border enforcement, focusing on measures such as new helicopters, technology, and additional personnel to combat drug trafficking, particularly fentanyl. Meanwhile, Mexican President Claudia Sheinbaum committed to deploying 10,000 national guard members to the northern border to curb illicit drug flows.
On Wednesday, West Texas Intermediate (WTI) crude fell to $71 per barrel, while Brent crude dropped to $74.61 per barrel. Crude oil prices have plunged to a year-low due to rising tensions in the US-China trade war and increasing US stockpiles. China announced new tariffs on US crude oil, liquefied natural gas (LNG), and other goods, escalating trade disputes between the world’s two largest economies. In response, investors fear a slowdown in global economic growth, particularly in China, the largest oil importer. Additionally, data from the US Energy Information Administration (EIA) revealed a significant rise in US crude oil inventories, signaling weakened demand.
JPMorgan is set to deliver $4 billion worth of gold bullion to New York this month, coinciding with expectations of heightened trade tensions. The shipment, totaling 30 million troy ounces of gold, comes amid a surge in gold prices, reaching $2,813 per ounce.
Crypto Recap
The crypto market experienced some price fluctuations this week. Bitcoin closed at $101,383, nearly unchanged (-0.24%) over the past 24 hours. Ether dropped 3.6%, closing at $3,166, while XRP declined 3.49%, settling at $2.93. Solana also retreated, ending at $218.56, down 4.41%.
One of the biggest headlines came from Strategy (formerly MicroStrategy), which reported a Q4 net loss of $670.8 million. Despite the loss, the company continued its aggressive Bitcoin accumulation, adding 218,887 bitcoins in the fourth quarter. This brings its total holdings to 471,107 bitcoins, valued at over $45 billion, solidifying its position as the largest corporate holder of Bitcoin.
However, following the earnings release, Strategy announced a pause on additional Bitcoin purchases. Despite this, the company has outlined plans to raise $42 billion in capital over the next three years to fund future Bitcoin acquisitions.
In other news, BlackRock disclosed that it now owns 5% of Strategy, equating to approximately 11.2 million shares—a 0.91% increase from its previous stake.
Global Markets
This week, European markets posted strong gains, with the STOXX Europe 600 rising 1.3% to close at 542.75. Germany’s DAX advanced 2.28%, ending the week at 21,787.00, while France’s CAC 40 climbed 2.4% to 7,973.03, and the UK’s FTSE 100 edged up 0.31% to 8,700.53.
