TradeZero Blog

Two market shocks less than three weeks into Trump's second presidential term have revived a playbook familiar to tech investors: "Buy the dip" is alive and kicking.

China unveiled a series of retaliatory measures against the U.S. on Tuesday, shortly after U.S. tariffs on Chinese goods took effect, raising concerns of a broader trade war between the world’s two largest economies.

During the week of January 27 to January 31, 2025, U.S. stock markets experienced mixed performance, influenced by significant developments in the technology sector and new trade policies.

U.S. technology stocks tumbled in pre-market trading Monday after President Donald Trump imposed substantial tariffs on imports from Canada, China, and Mexico, raising concerns about potential retaliation affecting the tech sector.

As we close out the first month of the year, it’s worth reflecting on the January Effect and its potential implications for the markets in 2025. While the January Effect has evolved over the years, it remains a topic of interest for traders and investors who want to better understand seasonal market trends and their possible predictive value.

Risks to the U.S. stock market are piling up as cracks emerge in the technology trade and the path for interest rates is clouded by persistent inflation worries that are being exacerbated by the potential for looming tariffs.

The release of a less capital-intensive artificial intelligence model from China’s DeepSeek sent a chill through the U.S. stock market Monday, initiating a massive selloff led by Nvidia, which roared back Tuesday, recovering almost half of its record-setting losses.

Global technology shares sank on Tuesday, as a market rout sparked by the emergence of a low-cost Chinese artificial intelligence model entered its second day, making investors question the sky-high valuation and dominance of AI bellwethers.

During the week of January 20 to January 24, 2025, U.S. stock markets experienced notable gains, with major indices reaching record highs before a slight decline on Friday.

U.S. technology firms plunged in premarket trading, as Chinese startup DeepSeek sparked concerns over competitiveness in AI and America’s lead in the sector, triggering a global sell-off.