Saxo Market Call Mag 7 risks underappreciated?
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Feb 5, 2025 The discussion dives into the recent struggles of major U.S. tech firms like Alphabet and AMD, exploring the fallout from disappointing earnings. It examines the complexities of U.S.-China tariffs and their ripple effects on the commodity market, particularly gold and silver. There's also an engaging analysis of U.S. economic growth risks tied to the MAG7 stocks, while delving into foreign exchange dynamics as the dollar declines. Finally, the conversation covers a potential breakout in commodity trends and rising precious metal prices amid geopolitical uncertainties.
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Tech Sector Weakness
- US tech stocks, especially those related to AI and the 'Mag 7', weakened after disappointing earnings reports from Alphabet and AMD.
- The NASDAQ 100 has been stagnant since December, possibly forming a distribution top.
Tariff Impacts
- The market responded positively to the temporary aversion of tariffs, viewing them as a negotiating tactic by Trump.
- However, 10% tariffs against China proceeded, with China responding with less impactful measures.
Gold's Rise
- Gold's recent surge is likely driven by central bank demand and a price dislocation between London and New York.
- Western investors are missing out due to beliefs about the dollar's strength and rising yields.