Luke Kawa1/13/25

S&P 500 claws back big early losses to finish higher

US stocks opened sharply lower, but rebounded throughout the day to finish at session highs. The S&P 500 and Russell 2000 advanced 0.2% while the Nasdaq 100 lost 0.3%.

Breadth was strong, as the number of risers in the S&P 500 outnumbered decliners by 254.

Every S&P 500 sector ETF was positive outside of utilities and tech. The commodity complex led the way, with energy and materials gaining more than 2% while real estate, healthcare, and industrials were up in excess of 1%.

The Magnificent 7 cohort underperformed, down 0.4%. Apple traded lower on reports that iPhone sales volumes fell 5% year on year in the fourth quarter, while Nvidia dropped as the Biden administration unveiled new curbs on semiconductor exports.

US Steel gained on news that other miners (like Cleveland-Cliffs) will take a run at acquiring the company after the Biden administration quashed the takeover attempt by Japan’s Nippon Steel.

Johnson & Johnson announced a deal to buy drugmaker Intra-Cellular Therapies, which sent shares of the former up a bit and shares of the latter up a lot.

Trump Media & Technology Group surged amid a wave of bullish options activity ahead of the inauguration.

Quantum-computing stocks were crushed, with D-Wave Quantum’s potential capital raise casting a pall over the cohort.

Moderna sank to its lowest levels since April 2020 after releasing an underwhelming revenue outlook, erasing pandemic-era gains.

Abercrombie & Fitch also tumbled after posting weak sales guidance.

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Max Knoblauch5h

American Eagle posts stronger-than-expected Q4 earnings and revenue

If American Eagle has seen farther, it is by standing on the shoulders of Sydney Sweeney.

The jeans seller posted adjusted earnings of $0.84 per share, ahead of the $0.71 expected by analysts polled by FactSet. It booked $1.76 billion in fourth-quarter revenue, versus the $1.74 billion consensus.

Shares initially climbed more than 5% after-hours before paring gains to about 2%.

“Compelling new product collections, supported by fresh marketing campaigns, led to higher demand trends in the quarter,” said CEO Jay Schottenstein.

American Eagle said it’s expecting same-store sales to grow by high single digits in the first quarter.

Marketing controversy has proved to be a powerful mover of denim for AE. In its third-quarter earnings call in December, AE said its partnership with Sydney Sweeney — together with a Travis Kelce partnership — had garnered more than 44 billion impressions. The retailer hit meme stock status last July when it initially launched its “Sydney Sweeney has great jeans” campaign.

As of Wednesday’s close, American Eagle shares had climbed 120% since the Sweeney ad first landed.

Broadcom posts modest Q1 sales and earnings beats

The custom chip specialist just reported Q1 results.

Digital X Special Opens In Cologne

Rigetti Computing posts Q4 sales that fall short of expectations

The quantum computing firm just posted Q4 results.

“Euro-Q-Exa" quantum computer

Tasha Matsumoto

Stocks rebound as investors’ risk appetite resumes

Investors shifted their focus from the war in Iran, resuming a risk-on mood amid surprise economic data.

Josh Giddey #3 of the Chicago Bulls grabs a rebound during the second half against the Detroit Pistons on October 22, 2025 at the United Center in Chicago, Illinois.

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Investors are itching to buy the dip in memory stocks

The intense drubbing in South Korean stocks, with the benchmark Korean index (KOSPI) falling nearly 20% in its first two trading days of the week following a Monday holiday, represented a serious threat to the hottest AI trade: memory stocks.

South Korea’s market is dominated by two high-bandwidth memory giants: SK Hynix and Samsung.

After Tuesday’s tumble, US investors seemingly said enough is enough: it’s a buy-the-dip opportunity.

US memory stocks like Micron, Sandisk, Western Digital, and Seagate Technology Holdings are posting massive gains on the day. The advance comes amid positive commentary at a Morgan Stanley conference on demand for memory chips.

Even more interestingly, the iShares MSCI South Korea ETF is up big today despite the KOSPI falling 12% overnight, its largest drop on record. The ETF’s outperformance of the South Korean equity gauge is the largest since 2008, as the global financial crisis raged.

The daily performance of these two can differ materially since they trade at different times and don’t track precisely the same things. US investors are making the bet that a potential break in this momentum trade and the potential for an unwind of retail leverage in South Korean markets be damned, big drops in memory stocks are meant to be bought.

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