| | | | Deep Seak Freakout?
What is Deep Seek, and why might this new OpenAI competitor be causing the market to freak out? Well, for one, the open-source models are 50X more efficient and run better than OpenAI's models on older, less awesome NVDA equipment.
Come join me as we dive in and see what’s moving!
Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.
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What Trump’s Return Could Mean for Volatility
Donald Trump’s back in the White House, and if history has taught us anything, it’s this: Volatility is likely on the rise. Whether you love him, hate him or fall somewhere in between, there’s no denying that markets have reacted sharply to Trump’s words and policies in the past.
And now, with his return to office, traders and investors need to buckle up for what could be a bumpy ride.
Back in his first term, we saw market-altering tweets that could send stocks soaring — or crashing — within minutes. Algorithms were designed solely to react to his Twitter feed, and even major companies like Boeing (BA) and General Motors (GM) were blindsided by his comments.
This time around, things might look similar, especially with the increasing role of artificial intelligence in trading strategies.
But here’s the kicker: Despite the short-term chaos Trump often brought to the markets, the long-term trajectory wasn’t altered significantly. The market’s path — like a river carving through rock — is already set in motion by broader forces.
However, that doesn’t mean traders can ignore the day-to-day turbulence. Trump’s track record suggests an uptick in knee-jerk reactions to news headlines, particularly in volatile sectors like Technology and Financials.
One area to watch is market confidence.
Trump’s policies often created uncertainty in global trade and domestic regulations, which spooked sectors like Industrials and Consumer Discretionary. On the flip side, his tax cuts and deregulatory measures boosted segments like Energy and Materials.
Now, the big question is whether his approach will change — or if we’ll see a repeat of his earlier playbook.
Another major factor is how Trump’s return will influence the Federal Reserve.
Historically, he wasn’t shy about criticizing the Fed’s rate hikes, pushing for policies that he felt would spur growth. With the Fed already navigating a tricky balancing act between inflation and growth, his return could add pressure — or outright conflict.
If Trump takes a hard stance on monetary policy, expect volatility in rate-sensitive assets like Treasury bonds, Real Estate and Utilities.
The bottom line is this: Trump’s presence introduces another layer of unpredictability. Traders should keep an eye on how his policies and public comments intersect with upcoming earnings, key economic data and Fed meetings.
The markets may already have their trajectory, but Trump’s influence could make the journey far more volatile.
Whether you’re a short-term trader navigating the chop or a long-term investor looking at the big picture, prepare for heightened volatility in 2025. Trump’s back, and the markets won’t stay quiet for long.
Today’s Daily Chart Setup: Premier Financial Corp. (PFC)
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