Here’s what’s happening in the stock market today:
The stock market is opening lower today amid escalating tensions between President Trump and the Federal Reserve, following Chair Jerome Powell's disclosure of Justice Department subpoenas targeting the central bank. 📉⚖️ Futures indicate declines, with Dow Jones down 0.7-0.8%, S&P 500 off 0.6-0.7%, and Nasdaq futures dropping up to 1.0%, despite record highs last week. Gold has surged to a record high above $4,600 per ounce as a safe-haven amid political risks, while oil shows mixed pressures from supply forecasts.
Major Indices 📊
Dow Jones Industrial Average futures fell 374-382 points, or 0.7-0.8%.
S&P 500 futures declined 0.6-0.7%, pulling back from recent records.
Nasdaq 100 futures dropped 0.8-1.0%, hit by tech sector volatility.
Market Movers 🚀📉
Gainers include Enliven Therapeutics (up 50.9%), Neogen Corp (up 30%), and MoonLake Immunotherapeutics (up 27.3%).
Losers feature NovaBay Pharmaceuticals (down 18.5%), Soho House (down 16.4%), and Ciena Corp (down 14.2%).
High-volume names like NVIDIA (down 2.7%) and Ford (up 5.3%) reflect broader rotation.
Key Events 🗞️
Fed Chair Powell accused the Trump administration of using subpoenas as political pressure to influence rate decisions, rattling investor confidence in Fed independence. Markets await US inflation data later this week and Fed speakers like John Williams today, which could sway yields and policy outlooks. Geopolitical unrest in Iran adds to uncertainty, boosting gold while pressuring equities.
Investor Sentiment 👀
Traders exhibit caution with political upheaval dominating headlines, shifting focus from economic data to Fed autonomy risks. 🏛️ Expectations for steady rates persist at 95% per CME FedWatch, but subpoena news introduces volatility. Overall mood blends recent rally optimism with fears of prolonged tensions. 🐻⚠️
TRADE OF THE DAY:
BABA
Name: Alibaba Group Holding Limited (ADR)
Symbol: BABA
Current Price: Approximately $163.51
Trade
Sell to Open: 1 BABA Jan 30, 2026 149/144 Put Vertical
Total Credit Received: $49.00
Credit per Contract: $49.00 (for one contract covering 100 shares)
Direction: Bullish
Probability of Profit (PoP): 84.12%
Potential ROI:
Max Risk (Loss): $451.00
ROI: ($49 ÷ $451) × 100 ≈ 10.9%
Trade Explained in Simple English:
This trade sells the 149 strike put and buys the 144 strike put on BABA, both expiring January 30, 2026, creating a bull put spread. You receive $49 upfront for entering the position. The trade will be profitable if BABA stays above approximately $148.51 at expiration, allowing both options to expire worthless. Your maximum loss is limited to $451 if the stock falls below $144, while your maximum reward is capped at the credit received, making this a defined-risk bullish strategy.
Wall Street Highlights:
News Beyond the Numbers
President Trump stated he is inclined to prevent Exxon Mobil from investing in Venezuela after criticizing CEO Darren Woods' comments on the nation being "uninvestable." Read more.
Allegiant Travel announced plans to acquire Sun Country Airlines in a deal valued at about $1.1 billion amid pressures on budget airlines' models. Read more.
Walmart plans to expand its drone delivery service to 270 more U.S. stores by the end of next year, enhancing its logistics capabilities. Read more.
Sole Source Capital acquired Brite, a leading cybersecurity and managed services provider, marking its first platform investment in SSC Partners Fund III. Read more.
Collision Partners completed acquisitions of Fantastic Finishes and Chassis Master, launching a quality-first growth strategy in the collision repair sector. Read more
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