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☕️ GM Munchers! The market was so volatile yesterday, it reminded me of the time I told my wife we couldn’t go to Target—chaos, panic, and a lot of things I didn’t see coming. Let’s unpack it!

On today’s menu:

• Nvidia’s $600B Meltdown: What Just Happened? 😱

• Inflation Strikes Japan: BOJ Fights Back With Rate Hike 🔺

• Trump Wants To Remove ALL Income Tax!? 😍 

MARKET OVERVIEW
Nvidia’s $600B Meltdown: What Just Happened? 😱

The markets are in shambles today, and it’s all thanks to Nvidia.

It lost $600 billion in market cap—the biggest single-day loss in U.S. history.

To put that into perspective, that’s more money than I’ll ever see, even if I had a lifetime of winning trades (and trust me, I don’t).

Let’s dig into what happened and how it’s moving markets.

💥 Nvidia’s Historic Crash

Nvidia shares plummeted 17% yesterday, wiping out $600 billion in market cap and earning itself a not-so-coveted spot as the biggest single-day market cap loser ever.

The culprit?

A scrappy Chinese AI startup called DeepSeek.

DeepSeek released an open-source AI model that’s making waves in the tech world.

It’s fast, it’s cheap, and it cost only $6 million to build.

Compare that to the billions Nvidia’s chips help power, and you can see why investors are freaking out.

Tech investors took one look at DeepSeek and said, “Oh no, Nvidia’s GPU dominance might be at risk.”

The selloff rippled across the sector:

• Broadcom: Down 17.4%

• AMD: Down 6.4%

• Microsoft: Down 2.1%

• Even Palantir got hit, dropping 4.4%.

The Ripple Effects: AI and Markets React

This Nvidia crash didn’t stop at tech—it dragged the broader market down with it, like a bad karaoke singer killing the vibe.

• Nasdaq Composite: Down 3.07% 📉

• S&P 500: Down 1.46% 📉

This broad selloff highlights how fragile market sentiment is.

One company’s stumble sent shockwaves across sectors, showing traders are on edge and recalibrating fast.

The bigger the selloff, the clearer the message: pay attention and align your trades with the shifting landscape.

Nvidia’s crash also sparked questions about an AI bubble.

DeepSeek’s cheaper, faster AI model has shaken confidence in Nvidia’s dominance and raised concerns about tech’s long-term trajectory.

Here’s what to watch:

1️⃣ Nvidia’s Recovery: Can it maintain its AI leadership?
2️⃣ AI Sector Volatility: Players like AMD and Broadcom may see more swings.
3️⃣ The Bigger Picture: Cheaper AI could redefine the tech landscape.

Traders, stay sharp.

This is the kind of volatility that rewards the prepared.

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Market Moves

Inflation Strikes Japan: BOJ Fights Back With Rate Hike 🔺

The Bank of Japan just hiked interest rates again, and it’s safe to say this is the most exciting thing to happen to Japanese monetary policy in nearly two decades.

If you didn’t think inflation would shake up the land of sushi and sumo, think again.

On January 24, the BOJ raised its short-term policy rate to 0.5%—its highest level in 17 years.

This marks their third hike in less than a year, a pace we haven’t seen since 1989, aka the year when the Berlin Wall fell and Michael Keaton was still Batman.

Why Is Japan Hiking Rates? 🤔 

Japan’s not just randomly pulling levers.

Here’s what’s driving their decision:

1️⃣ Inflation Is Heating Up
Core consumer prices in Japan jumped by 3% in December, the fastest pace in 16 months. For a country that’s spent years trying to escape deflation, this is a wake-up call.

2️⃣ Higher Inflation for Longer
The BOJ isn’t expecting this to cool off anytime soon. They upgraded their inflation outlook, predicting it will stay above their 2% target until FY2026.

3️⃣ Room for Future Moves
By raising rates now, Japan is giving itself some flexibility. If they need to stimulate the economy later, they’ll have room to cut rates without plunging back into negative territory.

What Does This Mean For Traders?

This isn’t just another rate hike—it’s a massive pivot for Japan.

After decades of ultra-loose policies and negative interest rates to fight deflation, the BOJ is moving toward a more traditional approach, and the markets are taking notice.

• The Yen: Higher rates boost its appeal. Expect movement in USD/JPY as traders recalibrate.

• Bonds: Rising Japanese yields could ripple across global bond markets, especially with Japan’s status as a major foreign debt buyer.

• Stocks: Higher rates often pressure equities, especially Japanese tech and export-heavy sectors.

The Bottom Line: Japan’s shift marks a “new normal” and could create fresh opportunities in forex, bonds, and beyond.

Stay sharp, watch the yen, and don’t sleep on Japan—it’s back on the radar.

🚀 Pre-Market Fuel

1. Trump wants to eliminate the US income tax. Meanwhile, in Canada we’re getting taxed to the moon…

2. A new stock trading program is launching soon. A new opportunity for traders?

3. Starbucks is revamping 11,000 stores. Keep an eye on their stock.

🍪 Munchy Memes

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