⏳ Tariffs Hit, META Buzz & 24/7 Trading – What’s Next? 🤔

In under 5 minutes, let us introduce you to investing opportunities found in recent market analysis. Grow your portfolio with knowledge.

Feb 03, 2025

Market Summary

Equities down.
Bond yields steady.
Oil up. Gold down.
Bitcoin down.

Investing Unlocks: How to Capitalize on the Hot Topics From The Last 7 Days

We analyze recent trends and opportunities, offering strategic insights that help you manage risks and identify growth opportunities for your portfolio.

Tariff Turmoil

President Trump’s sweeping tariffs have shaken the markets over the weekend. The President imposed 25% tariffs on Canada and Mexico and 10% tariffs on China. Canadian energy products are also subject to 10% tariffs. In response, Canada and Mexico announced retaliatory tariffs on U.S. goods, while China vowed countermeasures. Several automakers have seen their share prices decline, as have companies with heavy exposure to China. Meanwhile, domestic steel producers saw gains.

Why investors should care:

Higher Costs & Inflation Risks: Tariffs increase costs for automakers, tech companies, and consumer goods firms, potentially leading to higher prices for consumers and inflationary pressures.
Supply Chain Disruptions: Many U.S. companies rely on parts and materials from Canada, Mexico, and China, making tariffs a threat to production efficiency and profitability.
Stock Market Volatility: Trade tensions often lead to market uncertainty, causing sharp declines in affected sectors like automotive, semiconductors, and consumer goods.
Retaliation & Global Trade Impact: Canada, Mexico, and China’s countermeasures could hurt U.S. exports, impacting corporate earnings and economic growth.
Sector-Specific Winners & Losers: While automakers and import-heavy companies suffer, domestic industries like steel benefit from reduced foreign competition, creating sector-specific investment opportunities.

Read how companies are transforming supply chains to cut emissions, drive sustainability, and unlock long-term value—reshaping industries and creating new opportunities for investors in a low-carbon future.

META’s Rising Power

Meta Platforms had a strong January, with its stock rising 18% for the month. The company reported impressive fourth-quarter results, including a 21% year-over-year revenue increase and a 50% rise in earnings per share. Analysts praised Meta’s ability to leverage AI for sustainable engagement and pricing growth, positioning it as a key driver of its financial performance. Despite its recent success, the stock’s valuation remains a topic of discussion, with a consensus price target suggesting a moderate 7% upside potential. Meta’s continued investment in AI and digital advertising is expected to support its long-term growth.

Why investors should care:

Strong Revenue and Earnings Growth: Upbeat Q4 results signal robust financial performance.
AI-Driven Competitive Edge: Meta is effectively using AI to enhance engagement and ad pricing, creating sustainable long-term growth.
Advertising Strength: Digital ad revenue remains a key driver, benefiting from Meta’s massive user base and advanced targeting capabilities.
Stock Performance and Valuation: Shares rose 18% in January, with analysts projecting further upside potential despite strong recent gains.
Aggressive AI Investments: Meta is committing billions to AI infrastructure, ensuring its leadership in the next phase of tech innovation.

Meta has been investing heavily in AI and future technologies in recent months.

Investing Data Story

Are you interested to know which S&P 500 stocks soared and sank in 2024? Explore the trends shaping the market.

Future-Focused Innovation

Major exchanges are exploring extended trading to meet growing market demand. The NYSE has proposed expanding its hours from 4 AM-8 PM to 1:30 AM-11:30 PM, while the SEC has approved 24 Exchange (24X), a nearly 24-hour trading platform backed by Point72 Ventures. These developments reflect increasing institutional interest in round-the-clock market access.

This push for extended trading hours represents a major shift in financial markets, driven by evolving investor behavior and tech advancements. Platforms like Robinhood have witnessed a surge in overnight trading, fueled by smartphone-based access and an increasingly informed retail investor base. The appeal of trading outside traditional hours has only grown, particularly as US retail investors overlap with Asia’s active markets.

Recognizing this trend, major financial institutions are exploring ways to modernize market accessibility. The New York Stock Exchange is considering extending trading times to 22 hours a day, while alternative trading systems like Blue Ocean are already facilitating after-hours trading.

Despite the potential benefits, challenges remain. Defining market open and close times, managing risk across a 24-hour cycle, and ensuring liquidity for large trades are all key considerations. Institutional investors remain cautious, with concerns over regulatory implications, technological infrastructure, and operational burdens.

However, major players like Charles Schwab are already expanding their overnight offerings, signaling broader institutional adoption in the future. As global markets become more interconnected, extended trading hours could redefine accessibility, liquidity, and strategy, shaping the next phase of financial market innovation.

Discover how leveraged single-stock ETFs are fueling high-risk, high-reward trades, attracting billions in assets while regulators warn of steep losses for unwary investors. Are the rewards worth the risks?

Investing Intel

Discussion about this post