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Stock Market Update Monday January 27, 2025

Stock Market Update - Monday, January 27, 2025 U.S. equities experienced significant downward pressure, with the S&P 500 retreating 1.5% and the Nasdaq 100 plunging 2.9%. However, both indices managed to trim their losses in a late-session recovery as buyers stepped in ahead of the close.


Away From Stocks: In the bond market, Treasurys rallied sharply, reflecting a flight to safety. The two-year yield fell 10 basis points to 4.17%, while the 30-year long bond yield eased to 4.76%, down from Friday’s close of 4.85%. In the commodities space, WTI crude oil dropped to $73 per barrel, reflecting concerns over weaker demand amid a challenging macroeconomic outlook. Meanwhile, gold pulled back to $2,743 per ounce, paring recent gains as investors weighed inflation expectations against a strengthening U.S. dollar. Bitcoin also faced pressure, slipping below the $102,000 mark as risk assets broadly sold off.

The CBOE Volatility Index (VIX), a key gauge of market fear, spiked by over three points to close just under 18, signaling heightened uncertainty across financial markets.


Rising competition in the AI sector is fueled by Chinese startup DeepSeek, which released a free, open-source large-language model in December, causing market unrest and fears of a drop in global tech stock prices. DeepSeek claims it developed the model in two months for under $6 million, raising questions about the cost-efficiency of U.S. firms that invest billions in AI. Analysts note that U.S. companies still retain an advantage due to superior hardware, like Nvidia GPUs, crucial for training advanced AI systems. Some experts, however, doubt DeepSeek's cost claims, hinting that they may overlook prior R&D or subsidies, complicating the narrative of its efficiency. This reflects the increasing geopolitical rivalry for AI supremacy, as startups like DeepSeek challenge Silicon Valley's traditional dominance, leading to a more intense competitive landscape for AI innovation.


For weeks, we have stated to our premium members that January 27, 2025, is our cycle pivot date. Today, the stock market had a significant gap down. We do not predict markets or call tops or bottoms; we use cycle analysis from W.D. Gann and report when the market is expected to pivot. It is better to prepare for the next move than to predict it. With our stock market research and our proprietary algorithm which lets us know when and what direction to enter the stock market; that is the key to successful investing. All of our work can be verified in our Discord server, which is for our premium members.

 

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