January has seen continued strength from the equity markets as there has been a strong bid for stocks from both the value and growth part of the market. Since his inauguration on January 20th, Donald Trump has signed a plethora of executive orders that have thus far primarily focused on topics such as immigration and reducing the size of the federal work force, among others. While we expect these topics to remain in focus, we believe that focus will shift to economic policies in the coming months which could have a larger impact on markets.
News surrounding DeepSeek’s artificial intelligence prowess brought heightened volatility to the semiconductor space with the bellwether, Nvidia, seeing the largest decrease in market capitalization in a single day in US history. While the story is still developing, and we don’t want to draw too many conclusions the episodes does highlight the implied growth and valuation that some of the largest capitalized companies are trading and how quickly those stocks can reprice with new developments.
Subin, Samantha. “Nvidia Sheds Almost $600 Billion in Market Cap, Biggest One-Day Loss in U.S. History.” CNBC, 27 Jan. 2025, https://www.cnbc.com/2025/01/27/nvidia-sheds-almost-600-billion-in-market-cap-biggest-drop-ever.html.
Information in this commentary is gleaned from third-party sources, and while believed to be reliable, is not independently verified. This content is not intended to be tax, legal, investment, or fiduciary advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Bernardo Wealth Planning recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. Past performance does not guarantee future results.