To The Moon

On Tuesday, US stocks erased their year-to-date gains as markets grew concerned about a full-blown trade war between the US and Europe, while a sell-off in Japanese bonds pushed US Treasury yields higher. At market close, the Dow Jones fell by 870.74 points, or 1.76%, to 48,488.59; the Nasdaq dropped 561.07 points, or 2.39%, to 22,954.32; and the S&P 500 declined 2.06% to 6,796.86. Nvidia (NVDA.US) fell 4.3%, Apple (AAPL.US) dropped 3.4%, and Google (GOOG.US) lost over 2%. The Nasdaq Golden Dragon China Index fell 1.44%, with Alibaba (BABA.US) down nearly 2%. Germany's DAX30 index dropped 250.80 points, or 1.00%, to 24,709.53; the UK's FTSE 100 fell 72.85 points, or 0.71%, to 10,122.50; France's CAC 40 declined 49.44 points, or 0.61%, to 8,062.58; the Euro Stoxx 50 fell 30.76 points, or 0.52%, to 5,895.06; Spain's IBEX35 dropped 245.54 points, or 1.39%, to 17,419.76; and Italy's FTSE MIB fell 492.39 points, or 1.09%, to 44,703.50. Bitcoin fell below the $90,000 mark to $89,615.53, while Ethereum dropped over 6% to $2,995.83. The US Dollar Index, which measures the dollar against a basket of six major currencies, fell 0.41% to 98.642. At the close of New York forex trading, 1 euro traded at $1.1712, up from $1.1643 the previous session; 1 pound traded at $1.3428, up from $1.3426. 1 dollar bought 158.29 yen, up from 158.09 yen; 1 dollar bought 0.7904 Swiss francs, down from 0.7974; 1 dollar bought 1.3834 Canadian dollars, down from 1.3869; and 1 dollar bought 9.1369 Swedish krona, down from 9.2090. Spot gold rose 1.95% to $4,763.4; spot silver briefly surpassed $95, hitting a new all-time high alongside gold. The price of light crude oil for February delivery on the New York Mercantile Exchange rose 90 cents to settle at $60.34 per barrel, a gain of 1.51%; Brent crude for March delivery rose 98 cents to settle at $64.92 per barrel, a gain of 1.53%. UBS CEO Sergio Ermotti stated that exiting US assets would be a "dangerous bet." Speaking at the World Economic Forum in Davos, Ermotti noted that diversifying away from the US is unrealistic, emphasizing the strength of the US economy and his refusal to bet against it. On Tuesday, US Treasuries and S&P 500 stocks were sold off simultaneously as investors digested renewed tensions between President Trump and NATO allies over Greenland, while Danish pension fund AkademikerPension plans to exit the US Treasury market by the end of the month. President Trump stated that if the Supreme Court restricts federal tariff policies, he could use other means, such as a "licensing system," emphasizing that his current approach is the best but not the only option. Two Democratic senators are demanding that Trump administration officials turn over records related to the Justice Department's criminal investigation into Fed Chair Powell, marking Congress's first formal response to the subpoena received by the Fed earlier this month. US Commerce Secretary Howard Lutnick said interest rates should be lower and that Q1 GDP growth could reach 6% under a rate cut scenario. He expects growth to exceed 5% this quarter but believes current high rates are restraining stronger growth, a view that is his personal opinion and higher than Treasury Secretary Bessent's projection of 4-5% growth for 2026. ServiceNow (NOW.US) announced a three-year partnership with OpenAI to integrate GPT-5.2 into its enterprise workflow platform and develop AI voice technology, though financial terms were not disclosed. Nvidia (NVDA.US) invested $150 million in AI inference startup Baseten, which raised $300 million in a funding round led by IVP and CapitalG, doubling its valuation to $50 billion, highlighting Nvidia's aggressive moves in the AI inference startup space. Stifel maintained a Buy rating on Micron Technology (MU.US) and raised its price target from $300 to $360.