On February 4, 2025, a seemingly ordinary yet distinctive Tuesday, the atmosphere in the pre-market of the US stock exchange resembled a delicate game of strategyThe trends of the futures for the three major indices displayed a varied narrative, illustrating the complex emotions and expectations of investorsAs of the latest updates, the Dow Jones index futures experienced a slight dip of 0.10%, portraying a cautious observer maintaining vigilance amid market uncertainties; meanwhile, the S&P 500 index futures exhibited a modest uptick of 0.11%—a sign of confidence in the economic fundamentals to some degreeIn contrast, the Nasdaq 100 index futures climbed by 0.25%, highlighting the vitality and potential of the tech sector, possibly fueled by optimistic forecasts regarding innovation within the technology industry.

Reflecting on the trading day prior, news broke that the United States decided to postpone the imposition of tariffs on Canada and Mexico for an additional 30 daysThis announcement rippled through the US stock market like a pebble tossed into a lake, prompting a temporary market rebound

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Nonetheless, the three major indices ultimately closed in the red, with the Nasdaq plummeting by 1.2%. This occurrence underscores the deeply rooted concerns regarding trade uncertainties that persist within the market; even with tariffs momentarily deferred, it seems challenging to quickly alleviate the doubts harbored by investorsBaird investment strategist Ross Mayfield commented that “We are still in a bull market, bolstered by robust growth among American consumers and rising corporate profitabilityUntil these assertions prove incorrect, I believe that buying on dips remains a viable strategy.” He further stated, “Investors should be prepared for more market volatility stemming from trade uncertainties, but the overall backdrop remains quite solid.” This perspective hints at underlying strength in the American economy, providing essential support for the market despite trade-related fluctuations.

Contrasting opinions also emerged, notably from Andrea Tueni, head of sales trading at Saxo Bank’s French branchHe expressed a more cautious view, asserting, "The tariff issue hasn't vanished as quickly as many had hopedCorporate earnings have indeed provided a glimmer of hope for the stock market, but a larger game is at playMy suggestion is to proceed with caution." His remarks indicate a segment of market participants remains wary of trade complications, keeping a keen eye on potential market risks.

Among individual stock movements, American AI software firm Palantir emerged as a focal point prior to the market opening, seeing its shares surge more than 23%. This increase was propelled by the company’s Q4 2024 earnings report, which overwhelmingly surpassed expectationsPalantir CEO Alex Karp noted, “Our position at the center of the AI revolution continues to deepen.” His statement not only reflected the company's confidence within the AI domain but also attracted heightened interest from investors in the AI industry, underscoring the growth potential of tech firms driven by innovation.

Meanwhile, European stock markets exhibited varying trajectories

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The German DAX30 index saw a rise of 0.31%, indicative of stable performance in manufacturing and exports, which provided underlying support for the stock marketOn the other hand, the UK’s FTSE 100 index dipped 0.15%, potentially influenced by structural adjustments following Brexit and global trade uncertaintiesFrance's CAC40 index, however, increased by 0.33%, reflecting positive momentum in the service sector and consumer landscape.

In terms of corporate developments, the dynamics of various major firms attracted noteworthy attentionMorgan Stanley released a report significantly downgrading Nvidia’s GB200 shipment forecast for 2025, revising estimates from 30,000-35,000 units down to 20,000-25,000 units, with the worst-case scenario expecting shipments to drop below 20,000. This adjustment could have widespread repercussions for the GB200 supply chain with market impacts estimated between $30 billion to $35 billionFurthermore, Morgan Stanley speculated that the growth cycle of the cloud computing market may stretch until the first half of 2025, only to see year-over-year growth slow to single digits in the fourth quarterSuch news cast a substantial shadow over Nvidia and its associated supply chain, prompting investors to reevaluate prospects for cloud computing markets and demand for AI hardware.

Merck’s revenue for Q4 2024 reached \$15.62 billion, slightly surpassing market expectations of \$15.45 billion; however, the company projected 2025 revenues between \$64.1 billion and \$65.6 billion, falling short of the market’s forecast of \$67.37 billionThis underperformance in forecasts raised investor apprehension regarding Merck’s future growth trajectory, which could adversely affect its stock performance.

Pfizer reported Q4 2024 revenues of \$17.76 billion, exceeding market estimates of \$17.26 billion

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The firm still anticipates revenues for 2025 to fall between \$61 billion and \$64 billion, a projection slightly below the market's forecast of \$63.15 billionPfizer's robust earnings reflect its stable standing within the pharmaceutical market, yet uncertainty surrounding future revenues persists among investors.

Additionally, Tesla reportedly plans to supply batteries for a substantial energy storage project in Japan, providing its Megapack system with a total capacity of 548 megawatt-hours to a factory located in the central region of Shiga Prefecture, JapanThis plant, a project spearheaded by the financial services group Orix, aims to become one of Japan’s largest energy storage facilities, expected to commence operations as soon as 2027. This collaboration not only expands Tesla's footprint within the energy storage sector but also highlights the growing global demand for clean energy and storage technologies.

Furthermore, OpenAI, the developer behind ChatGPT, along with South Korean chat application operator Kakao, announced plans to establish a strategic partnership to develop AI products aimed at the South Korean marketKakao’s CEO Chung Shina stated during a press conference in Seoul that the company would integrate OpenAI's technology within its appWhen asked whether OpenAI is contemplating investments and joining AI computation center projects in South Korea, CEO Sam Altman indicated the company is “actively considering” such initiativesThis collaboration is expected to propel the application and development of AI technologies in the South Korean market, offering OpenAI new opportunities to expand globally.

In this landscape filled with fluctuations, the intertwining dynamics of US stocks, European markets, and various corporate movements together weave a complex fabric of the global financial environment

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