In this video, Tony gives a macro review of where we currently stand with the broader markets given the impact of DeepSeek on the AI space. He then shares some trade ideas for the week, including NVDA, META, LULU, DIS, & AAPL.
This video premiered on January 27, 2025.
In this video, Dave reviews the VanEck Semiconductor ETF (SMH) from a technical analysis perspective. He focuses on the recent failure at price gap resistance, the breakdown below price and moving average support, and the frequent appearance of bearish engulfing patterns which have often indicated major highs over the last 12 months.
This video originally premiered on January 27, 2025. Watch on StockCharts’ dedicated David Keller page!
Previously recorded videos from Dave are available at this link.
The market opened with a bang as news of a cheaper Artificial Intelligence program, DeepSeek out of China. It has spurred investors to rethink the overbought Technology space, AI in particular. NVDA was down over 17% and other high profile AI companies also suffered.
Carl reviewed the DP Signal Tables to see where we stand on our 26 indexes/sectors/industry groups we follow. Utilities (XLU) was due for a Silver Cross BUY Signal, but with today’s steep drop, it will not materialize.
Carl also gave us his insight into the long-term condition of Bonds over the past 80 years and how he sees the current breakdown resolving.
The market overview was especially interesting with today’s decline. Carl walked us through all of the DecisionPoint primary indicator charts and discussed his outlook for the market in general. He then went into Bitcoin, Crude Oil, Dollar, Gold and more.
The Magnificent Seven overview walked us through the clear danger on many of the charts, but not all were suffering on today’s loss. Apple (AAPL) was certainly a surprise.
Erin took over with an insightful look at sector rotation. The market may be struggling, but internals aren’t that bad as we see rotation into Consumer Staples and Healthcare rather than a complete rush to the exits.
She finished the trading room with a look at viewer symbol requests that included LI, RIVN, HD and more.
01:02 DP Signal Tables
03:47 Long-Term Bond Discussion
06:20 Market Overview
17:45 Magnificent Seven
25:15 Questions
25:55 Sector Rotation
39:38 Symbol Requests
If you like this video you will love the DP Alert subscription. We cover the market in general as well as a look at Bitcoin, Bonds, Yields, Gold, Dollar, Gold Miners and Crude Oil! Try it out for two weeks free using our coupon code: DPTRIAL2! Subscribe here: https://www.decisionpoint.com/products.html
Before you trade any stock or ETF, you need to know the trend and condition of the market. The DP Alert gives you all you need to know with an executive summary of the market’s current trend and condition. It not only covers the market! We look at Bitcoin, Yields, Bonds, Gold, the Dollar, Gold Miners and Crude Oil! Only $50/month! Or, use our free trial to try it out for two weeks using coupon code: DPTRIAL2. Click HERE to subscribe NOW!
Learn more about DecisionPoint.com:
Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin
(c) Copyright 2025 DecisionPoint.com
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.
Helpful DecisionPoint Links:
Trend Models
Price Momentum Oscillator (PMO)
On Balance Volume
Swenlin Trading Oscillators (STO-B and STO-V)
ITBM and ITVM
SCTR Ranking
Bear Market Rules
The market opened with a bang as news of a cheaper Artificial Intelligence program, DeepSeek out of China. It has spurred investors to rethink the overbought Technology space, AI in particular. NVDA was down over 17% and other high profile AI companies also suffered.
Carl reviewed the DP Signal Tables to see where we stand on our 26 indexes/sectors/industry groups we follow. Utilities (XLU) was due for a Silver Cross BUY Signal, but with today’s steep drop, it will not materialize.
Carl also gave us his insight into the long-term condition of Bonds over the past 80 years and how he sees the current breakdown resolving.
The market overview was especially interesting with today’s decline. Carl walked us through all of the DecisionPoint primary indicator charts and discussed his outlook for the market in general. He then went into Bitcoin, Crude Oil, Dollar, Gold and more.
The Magnificent Seven overview walked us through the clear danger on many of the charts, but not all were suffering on today’s loss. Apple (AAPL) was certainly a surprise.
Erin took over with an insightful look at sector rotation. The market may be struggling, but internals aren’t that bad as we see rotation into Consumer Staples and Healthcare rather than a complete rush to the exits.
She finished the trading room with a look at viewer symbol requests that included LI, RIVN, HD and more.
01:02 DP Signal Tables
03:47 Long-Term Bond Discussion
06:20 Market Overview
17:45 Magnificent Seven
25:15 Questions
25:55 Sector Rotation
39:38 Symbol Requests
If you like this video you will love the DP Alert subscription. We cover the market in general as well as a look at Bitcoin, Bonds, Yields, Gold, Dollar, Gold Miners and Crude Oil! Try it out for two weeks free using our coupon code: DPTRIAL2! Subscribe here: https://www.decisionpoint.com/products.html
Before you trade any stock or ETF, you need to know the trend and condition of the market. The DP Alert gives you all you need to know with an executive summary of the market’s current trend and condition. It not only covers the market! We look at Bitcoin, Yields, Bonds, Gold, the Dollar, Gold Miners and Crude Oil! Only $50/month! Or, use our free trial to try it out for two weeks using coupon code: DPTRIAL2. Click HERE to subscribe NOW!
Learn more about DecisionPoint.com:
Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin
(c) Copyright 2025 DecisionPoint.com
Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.
Helpful DecisionPoint Links:
Trend Models
Price Momentum Oscillator (PMO)
On Balance Volume
Swenlin Trading Oscillators (STO-B and STO-V)
ITBM and ITVM
SCTR Ranking
Bear Market Rules
Vale (NYSE:VALE) announced on Thursday (January 23) that its subsidiary, Vale Base Metals, has initiated a strategic review that will involve evaluating its mining and exploration assets in Thompson, Manitoba.
The company will look at a range of options for the properties, including a potential sale.
The Thompson Nickel Belt has been producing nickel since 1956. Spanning 135 kilometers, the belt includes two operational underground mines, an adjacent mill and significant exploration opportunities.
During the 12 month period ended in Q3 2024, the Thompson assets put out 10,500 metric tons of finished nickel.
The strategic review is intended to optimize Vale Base Metals’ asset portfolio and strengthen the competitiveness of its nickel operations. The company expects the review to conclude in the second half of 2025.
Nickel prices entered 2025 in the US$15,000 to US$15,200 per metric ton range.
The metal struggled to gain momentum last year, with increased output from Indonesia and limited growth in demand from key sectors such as stainless steel and electric vehicle batteries.
Ewa Manthey, commodities strategist at ING, noted that the market surplus is unlikely to ease in the near term.
China’s recent steps to support its economy, which include a US$1.4 trillion investment plan over the next five years, may influence nickel demand indirectly. However, analysts caution that measures introduced in 2024 had limited effects on China’s housing and manufacturing sectors, which are key drivers of stainless steel consumption.
Indonesia, the world’s top nickel producer, continues to play a central role in the market surplus. Its expanding nickel output, supported by significant Chinese investment, has solidified its dominance in the industry.
However, there are indications that Indonesia may consider curtailing production to stabilize prices. Reports suggest that the Indonesian government is evaluating deeper cuts to nickel-mining quotas.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Livium Ltd (ASX: LIT) (‘Livium’ or the ‘Company’) wishes to provide a strategic update in response to progress that had been made to shift our various technologies to important inflection points for growth. Livium’s strategy is now focussed on strategic partnering initiatives which will facilitate the ongoing growth and development of the Company’s technologies. With a more focussed set of actions, a review of the business has been undertaken to explore options to reduce costs.
HIGHLIGHTS
Comment regarding the strategic update from Livium CEO and Managing Director, Simon Linge
‘We have advanced our strategy to inflection points, with the next phases of growth for each division requiring strategic partners to underpin their growth and development. With a focus on strategic growth partners, we have reviewed our resourcing and made the decision to restructure our organisation and reduce costs.
Livium remains committed to delivering returns for shareholders. Whilst organisational changes may impact our ability to react to opportunities, right sizing the organisation assists in resetting the Company’s cost base to become sustainable over this critical period.’
NEAR TERM PLANS
The following activities have been identified as key to delivering value in the near term:
BATTERY RECYCLING GROWTH OUTLOOK
The Battery Recycling division generates revenue today, is the largest recycler of lithium-ion batteries in the country, draws on our technical expertise to provide value-added services and has strong commercial relationships. Strategic focus is being placed on Battery Recycling, through Envirostream, due to the potential of increased recycling volumes over the coming years.
During CY2024, Envirostream successfully increased volumes of EV’ andESS2 with most of the volume being received under exclusive customer arrangements. Over CY2024, Envirostream collected 736k tonnes of large format batteries and it is estimated that there are five times these volumes available today which are increasingly expected to be recycled due to consumer demand and government regulation. In their Battery Market Analysis, B-cycle show how EV and ESS batteries are expected to dominate3.
Focusing on only EV / ESS for the balance of the decade demonstrates the near-term opportunity for Envirostream collections growth relative to current performance.
The near-term outlook for Envirostream is positive, enabling increases of volumes collected and processed, and providing an opportunity to expand our service offerings in line with market requirements.
To accommodate expectations of market growth, the business intends to explore deploying growth capital to improve operating efficiencies and expand capacity. The company has appointed advisors to coordinate discussions around partnership and growth funding options, which includes both strategic partners and other financiers.
Click here for the full ASX Release
Altcoins are a hot topic in 2025 amidst regulatory shifts and political changes, and investors interested in crypto should take time to learn about the broader altcoin ecosystem and top altcoins to watch.
Read on for a look at altcoin trends and the top altcoins to watch in 2025, as well as tips for investing in altcoins to diversify your portfolio.
The term altcoins refers to alternative cryptocurrencies, meaning all cryptos other than Bitcoin. Opinions on whether or not Ethereum is still considered an altcoin vary.
In terms of whether altcoins are a good investment, exposure to altcoins can give investors access to potential profit opportunities beyond the market’s two top cryptocurrencies, as well as the wide variety of utilities altcoins cover.
However, just like investing in traditional markets, investing in cryptocurrencies has its risks. Cryptocurrencies are known for their volatility, experiencing pronounced swings in response to both positive and negative developments, and this can be more pronounced for altcoins with lower market caps. Read on to learn more about the forecast for altcoins this year and how to evaluate them to decide which to invest in.
Crypto is in a bull market that is likely to continue this year, with tailwinds including the potential approvals of altcoin ETFs and a crypto-friendly administration in the US.
“(But) when you look at the overall picture, I think (the market) is going to be very positive in 2025. You’re going to have altcoins that have runs. You’re going to have altcoins that are going to have triple-digit percentage gains this year.”
As for what markets could like like quarter to quarter, he anticipates a strong first quarter in 2025, particularly February and March. Through Q2 and Q3 of the year he expects increased volatility, followed by another rise in late Q3 and Q4.
However, he expects this is the last year of this bull market and we could see a potential market downturn early next year. This would align with the typical four-year cycle observed in the crypto space.
“A lot of this is also dependent on a very big macroeconomic factor, which is global money supply,” Utkarsh continued. “We have all this other stuff happening, wars and pandemics and this and all these other things, but that one piece, in my opinion, I feel out influences any other factor driving these markets.”
A December 2024 Haver analysis of money supply in major economies, including the US, Eurozone and Japan, indicated positive growth over the preceding 12 months, a period during which labor markets remained strong and inflation lessened.
A positive macroeconomic climate encourages investors to take on more risk, which benefits the cryptocurrency market. New capital entering the crypto space often flows into Bitcoin first, and subsequent price increases then draw attention to and boost interest in altcoins.
“I think we’re very close to the true definition of alt season, (which) is when 75 percent of the top 50 coins have outperformed Bitcoin in the last 90 days,” Utkarsh explained. “While we’re not there yet, we’re seeing what we see every cycle: the large caps are going off.”
SOL, XRP and SUI are three notable examples of altcoins that have seen triple digit gains in the last year.
At US$234 at the time of writing, SOL, the token of the Solana blockchain, is up 150 percent year-over-year. Sui, which unlocked 64.19 million SUI tokens worth approximately US$338.8 million on January 1, 2025, has also had an impressive run, up 184 percent over the same time period. Lastly, Ripple’s token XRP has seen massive annual gains of over 460 percent, with the majority of those gains coming since November 2024.
Institutions have applied to list exchange-traded funds (ETFs) for all three of those cryptos, and many market watchers expect them to launch in 2025.
“I actually see the potential for multiple ETFs to be filed. Not just for XRP and Solana, but also for combination ETFs, like Bitcoin and Ethereum, or a combination of a few together. Maybe not completely new ones, but the existing ones packaged together,” Utkarsh said.
Meanwhile, Bitcoin’s dominance is shrinking, with its market share down to 57 percent from 60 percent in November 2024.
Despite the significant potential rewards, Utkarsh urges investors to be mindful of the risk. “One thing I tell people is that when you’re at the height of the bull market, to achieve triple-digit gains we will have double-digit drawdowns.”
The price swings observed in Bitcoin following President Trump’s election in November, which included both substantial gains and sharp declines, illustrate the potential for rapid changes in market sentiment and value.
Utkarsh explained how early altcoin performance often foreshadows the dominant trends of a crypto cycle and discussed a variety of narratives he is seeing in the altcoin space.
Projects like Render, ICP, Near Protocol and Fetch.ai operate within the artificial intelligence (AI) narrative and are poised for growth thanks to surging demand for AI infrastructure and data processing.
“I feel another narrative that’s poised for massive growth is tokenization,” Utkarsh said, “and (a strong) player in that (space) is Ondo Finance.”
Ondo Finance provides the infrastructure for tokenizing real-world assets. BlackRock utilized that infrastructure to launch BUIDL, a tokenized money market that gives investors access to tokenized short-term US government bonds.
“The gaming narrative is also interesting because I think there’s a lot of initial coin offerings (ICOs) that are coming in this space,” Utkarsh continued. “One of the strong gaming players is IMX, (the token of a company called) Immutable X.”
Immutable X is a platform built on top of the Ethereum blockchain. The platform makes creating and trading non-fungible tokens (NFTs) easier, faster and cheaper with a technology called zk-rollups to bundle transactions together. IMX is used for things such as paying fees on the platform.
During the discussion, Utkarsh emphasized the importance of utility as well as marketing within the crypto space, highlighting that its relevance spans various sectors of the market.
“There’s so many companies that have massive utility potential, but they’re just not being utilized in that way,” he said. ‘But I think when you’re in an asset class that’s still fairly early, it is so important for founders and leadership to understand market dynamics and not just geek out on the technology. The companies that I feel are going to make it in this cycle are the ones that already have done a big push from a marketing standpoint.”
To illustrate this point, Utkarsh compared Render, a decentralized graphic processing unit rendering network, to Aethir, a less well-known but potentially more powerful competitor. Utkarsh also observed that meme coins are demonstrating genuine utility within the gaming community.
“In fact, we’re even invested in a gaming company right now, (Hexagon Studios), that’s about to go ICO, and they’re launching a meme coin that can be used within games. It’s not just a coin for trying to make money, they’re actually using the coin for some utility to do in-game purchases and all that stuff, but making it a little bit fun.’
While Utkarsh expressed optimism that the narrative around meme coins could shift, he emphasized that they are still an inherently risky investment, often associated with fleeting internet trends and speculation. This was evidenced by US President Trump and First Lady Melania Trump’s meme coins, launched on January 17 and 19, that raked in billions within hours only to reverse course. Crypto watchers have criticized the projects for holding the majority of tokens in one wallet.
Investors are likely wondering how to find the next big altcoin. Utkarsh advises utilizing data-driven metrics — such as token unlocks, sector performance, partnerships, news events, and economic data releases — to identify promising altcoin investment opportunities.
He also explained that investors should keep their risk tolerance in mind when considering the market cap of a coin. Larger-cap coins tend to be more suitable for longer-term holding, while mid-cap and low-cap coins might offer greater potential for shorter-term gains but higher risk of losses as well.
As for how to build a crypto portfolio, diversification is important for mitigating risk and maximizing the potential for returns.
“If we take microcaps out of the equation, I think by putting about 50 percent in large cap, 30, maybe even 35 percent in mid-cap, and potentially 15 to 20 percent in low cap, that could be a healthy balance,” Utkarsh said. “If you want growth, I don’t feel that you should be in about like 15 different companies; that being said, I don’t think you should be in like two companies either.”
So, which altcoins are the best in 2025? This list of altcoins to consider investing in includes crypto with strong fundamentals, real-world utility, active communities and innovative technology that could benefit various industries.
This list of top altcoins is arranged by market cap. Market cap and total value locked (TVL) — which refers to the overall value of assets deposited in a DeFi protocol — were gathered from CoinGecko and DefiLlama, respectively, on January 27, 2024.
Market cap: US$174.56 billion
Total value locked: US$77.45 million
Price: US$3.02
While Ripple has a smaller DeFi ecosystem compared to other blockchains like Ethereum or Solana, its strength lies in its focus on cross-border payments and institutional adoption. This positions Ripple as a key player in traditional finance, with the potential for increased demand and value appreciation driven by factors outside of the DeFi space.
There is wide speculation that the new US Trump administration will result in a favorable resolution of Ripple’s lengthy legal battles with the US Securities and Exchange Commission (SEC). CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty met with President-elect Donald Trump for dinner on January 7. While details of the meeting weren’t revealed, the news sent interest in its token, XRP, up 2.63 percent as the rest of the crypto market pulled back.
Additionally, at least seven financial institutions have applied to the SEC to offer XRP ETFs focused exclusively on the token, while several others have applied for diversified crypto ETFs with a basket of coins, including XRP.
Market cap: US$113.8 billion
Total value locked: US$12.73 billion
Price: US$234.08
Known for its high transaction speed and low fees, Solana has been a major player in the NFT and DeFi space. It’s often seen as a competitor to Ethereum, surpassing Ethereum in terms of trading volume since Q4 2024. This surge has been attributed to the rise of meme coins on the Solana blockchain, such as Doge on Solana (SDOGE), a wrapped version of the original Dogecoin (DOGE).
The value of its token SOL has increased by over 200 percent year-over-year. Institutions that have applied to the SEC for SOL ETFs include VanEck, 21Shares, and Cboe Global Markets.
Market cap: US$33.37 billion
Total value locked: US$563.81 million
Price: US$0.93
Cardano is a proof-of-stake blockchain that prioritizes a methodical, research-based approach to development, with a focus on security and scalability for smart contracts and dApps.
Analysts such as Peter Brandt and Altcoin Sherpa predicted earlier in January that ADA could be headed for a bull rally based on a double-bottom pattern formed year-over-year that demonstrates a long period of price stability and accumulation, an indication of underlying support from buyers.
At least three financial institutions have filed for Cardano ETFs in 2025.
Market cap: US$15.27 billion
Total value locked: US$1 billion
Price: US$23.88
Chainlink is a decentralized oracle network that provides real-world data to smart contracts across various blockchains, enabling DeFi applications and other use cases requiring secure external data. In November 2024, Trump’s World Liberty Financial adopted Chainlink’s technology, a partnership that allowed World Liberty to offer more reliable and secure services.
Later, Cointelegraph reported on January 20 that Trump had purchased US$4.7 million worth of LINK as part of an over US$50 million cryptocurrency spending spree. The news sent LINK’s price above US$25.00 for the first time since December 12. Trump’s interest in Chainlink could indicate a growing recognition of the potential and value of decentralized oracle networks within the crypto industry.
Market cap: US$13.99 billion
Total value locked: US$1.43 billion
Price: US$34.01
Avalanche is a layer-1 blockchain that aims to address the scalability limitations of older blockchains like Ethereum. It boasts high throughput and fast transaction speeds, making it suitable for demanding applications like decentralized exchanges and gaming. Its token AVAX is used to pay transaction fees, and users can participate in securing the network by staking AVAX tokens.
Analysts at InvestingHaven predict that AVAX could reach prices between US$29.02 and US$95.11 in 2025, citing its Fibonacci retracement level as a critical indicator for a potential long-term reversal. While no ETFs have been filed specifically for AVAX yet, its growing ecosystem and focus on subnets could position it for increased adoption and potential price appreciation in the coming years.
Market cap: US$11.84 billion
Total value locked: US$1.74 billion
Price: US$3.94
Sui is a layer-1 blockchain that uses an object-centric data model and the Move programming language, a design that improves the efficiency and security of smart contract development and execution.
Despite its relatively recent ICO launch in May 2023, SUI has exhibited remarkable growth, with its value increasing by over 180 percent year-over-year at the time of this writing. One analyst, @CryptoELITES, shared his price predictions on January 22, including a high of US$40 by the end of this bull run.
Market cap: US$8.62 billion
Total value locked: US$3.3 million
Price: US$114.33
Litecoin is one of the oldest and most established altcoins. It offers faster transaction speeds and lower fees compared to Bitcoin, making it a viable option for everyday transactions. It is often referred to as the silver to Bitcoin’s gold.
Canary Capital filed to offer a spot Litecoin ETF in October 2024, and provided the SEC with an updated application on January 16. Bloomberg ETF analyst Eric Balchunas predicts that Litecoin could be the next coin approved for a spot ETF.
Market cap: US$4.57 billion
Total value locked: US$21.29 billion
Price: US$303.92
Aave is a decentralized lending and borrowing protocol that allows users to earn interest on their crypto assets or borrow against their holdings. It was named the number two lending platform by BeinCrypto due to its broad multichain accessibility and low annual percentage yield.
Aave received a significant sum of US$6.9 million from Trump’s World Liberty Financial on January 22 during a crypto buy-up that also included LINK, TRON, USDC, ETH and wrapped Bitcoin (wBTC), a token on the Ethereum blockchain that’s backed by Bitcoin.
Market cap: US$3.2 billion
Total value locked: US$145.9 million
Price: US$0.38
Algorand is a proof-of-stake blockchain platform that is gaining traction in various sectors, including DeFi, NFTs and supply chain management. Algorand’s focus on sustainability, its strong technical foundation and its growing ecosystem make it a contender in the blockchain space. As of writing, ALGO is up over 11 percent month-over-month and over 8 percent over the past 14 days.
On January 3, the Algorand Foundation shared its latest update, rolling out a staking program that will reward validators with 10 ALGO per block.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
A premarket tech stock selloff extended into the cryptocurrency market on Monday (January 27) ahead of a data-packed week that includes interest rate announcements from the US Federal Reserve and Bank of Canada.
The selloff began after DeepSeek, a Chinese rival to OpenAI, became the top free app in the Apple Store over the weekend. DeepSeek-R1, which was released on January 10, can reportedly perform reasoning tasks just as well as OpenAI’s o1, but costs less and is a partially open system that allows researchers to study it.
ByteDance also released Doubao-1.5-pro, an upgrade to its flagship artificial intelligence (AI) model last week, claiming it outperforms OpenAI’s o1 in AIME, a benchmark test that measures how well AI models understand and respond to complex instructions. ByteDance is the owner of popular social media app TikTok.
Reuters later reported that outages were affecting DeepSeek as its popularity skyrocketed.
For its part, OpenAI unveiled its AI agent, Operator, on January 23, launching in the US for ChatGPT Pro users; it has no immediate plans to expand the release to Plus, Team or Enterprise customers. Operator is trained to interact with graphical interfaces online, allowing it to “see” web browsers and perform tasks such as making reservations. It can reportedly self-correct if it makes a mistake and will hand control back to the human user if it runs into challenges.
Elsewhere, Meta Platforms (NASDAQ:META) CEO Mark Zuckerberg posted a projection of his company’s AI spending targets, indicating that Meta plans to spend between US$60 billion and US$65 billion on AI in 2025.
The funds will primarily be used to build a data center so large that it “covers a significant part of Manhattan.” The data center will power an AI engineer, which will contribute to the company’s research and development efforts.
With the release of DeepSeek, the level of spending and investment in AI by western countries is suddenly facing higher levels of scrutiny, with a cheaper alternative readily available and popular with consumers.
“We still don’t know the details and nothing has been 100 percent confirmed in regards to the claims, but if there truly has been a breakthrough in the cost to train models from US$100 million+ to this alleged US$6 million number this is actually very positive for productivity and AI end users as cost is obviously much lower meaning lower cost of access,” Reuters quotes Jon Withaar, a senior portfolio manager at Pictet Asset Management, as saying in a Monday article.
Researchers for the small Hangzhou startup behind DeepSeek wrote in a paper last month that the DeepSeek-V3 model was trained using NVIDIA’s (NASDAQ:NVDA) H800 chips, which were initially developed as a reduced-capability product to get around US restrictions on sales to China. Training the model reportedly cost less than US$6 million.
US sanctions subsequently banned the chips. If DeepSeek is able achieve these results with mid-level chips, it challenges the narrative that advanced computing abilities are necessary.
Tech stocks tumbled Monday, with the Nasdaq-100 (INDEXNASDAQ:NDX) sinking nearly 3 percent to record its biggest drop since September 2022. The S&P 500 (INDEXSP:.INX) fell 1.7 percent.
Chipmakers like Taiwan Semiconductor Manufacturing Company (NYSE:TSM) and Broadcom (NASDAQ:AVGO) pulled back, and NVIDIA, Oracle (NYSE:ORCL) and Palantir (NASDAQ:PLTR) were among the hardest-hit tech names.
Investors sought safety in bonds, pushing 10 year Treasury yields down to 4.54 percent. The CBOE Volatility Index (INDEXCBOE:VIX) spiked to a one month high, reflecting increased market anxiety.
The selloff extended to energy companies like Vistra (NYSE:VST) and GE Vernova (NYSE:GEV), which are expected to benefit from AI’s growing energy demands. However, major tech companies Apple (NASDAQ:AAPL), Meta and Microsoft (NASDAQ:MSFT) experienced only modest declines for the day.
Cryptocurrencies joined tech stocks in a Monday downturn, with the total market cap for the sector dipping over 6 percent in premarket trading. Bitcoin saw a sharp 6.5 percent slide on Sunday, falling from above US$104,000 to US$97,790 overnight. Traders are piling into protective US$97,500 strike options, according to Barchart of Business.
While some tokens, such as XRP, SOL and Dogecoin, saw a short-lived rebound of over 2 percent in early trading, overall sentiment among cryptocurrency investors remains cautious.
Charles Wayn, co-founder of Galxe, doesn’t see the downturn in the crypto sector lasting long.
‘Whether that be AI co-pilots like Alva that can help investors research different digital assets, AI that can assist developers to make faster more efficient advancements in blockchain technology or AI agents that can fully manage portfolios, the possibilities are endless,’ the expert continued.
‘So no matter where this technology comes from, the crypto sector will benefit from it.”
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
Mining giants Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) and Glencore (LSE:GLEN,OTC Pink:GLCNF) have been making headlines this week following news that they previously engaged in merger discussions.
In a January 18 article, Reuters said the companies reportedly had “brief” conversations late last year; however, a source told the news outlet that these talks ultimately led nowhere and are no longer active.
Reuters notes in a separate article that a source with direct knowledge of the situation said Rio Tinto had questions about how much money it would have to spend, as well as about cultural compatibility with Glencore.
‘Glencore is a trader … and their operating assets are nothing but a captive source of material for them to trade against. The clash culture would be quite something … but any deal can be done at the right price,’ Abel Martins Alexandre, previously a Rio Tinto treasurer and a former managing director at Lloyds Bank, commented.
Speaking to CNBC, Maxime Kogge, equity analyst at Oddo BHF, said the companies “have limited overlapping assets.” In her view, copper is the only place where Rio Tinto and Glencore have synergies.
Both Rio Tinto and Glencore had not released any statements regarding the matter at the time of this writing.
Glencore previously offered to merge with Rio Tinto in 2014, but Rio Tinto rejected the idea.
A major transaction occurred between the two firms years later, with Glencore announcing plans to acquire Rio Tinto’s 82 percent interest in the Hail Creek coal mine and adjacent coal resources in 2018. The deal was for total cash consideration of US$1.7 billion, and included a 71.2 percent interest in the Valeria coal resource in Central Queensland.
Last year, both companies made significant partnerships with other notable mining companies.
This past December, Rio Tinto signed a term sheet with Sumitomo Metal Mining (TSE:5713) through which they will advance the Winu copper-gold project in Western Australia. In October, the company said it would acquire Arcadium Lithium (NYSE:ALTM,ASX:LTM) in a bid to meet growing demand for lithium in electric vehicle production.
Meanwhile, Glencore, closed its acquisition of a 77 percent interest in Elk Valley Resources from Teck Resources (TSX:TECK.A,TSX:TECK.B,NYSE:TECK)in July 2024.
Last year, a mix of successful and failed mergers and acquisitions were made in the mining industry.
Among the biggest was BHP’s (ASX:BHP,LSE:BHP,NYSE:BHP) attempt to acquire Anglo American (LSE:AAL,OTCQX:AAUKF), which eventually ended in May with a rejection from Anglo.
The six week pursuit reached a total of three offers, with Anglo saying the deal did not meet its expectations.
In October, media outlets reported that BHP “has moved on” from Anglo. The mining giant later released a statement on the matter, explaining, ‘The UK Takeover Panel Executive has confirmed that the comments made will not be treated as a statement of intention not to make an offer in respect of Anglo American.’
BHP was successful in a separate transaction this past July, when it agreed to acquire 100 percent of Filo with Lundin Mining (TSX:LUN,OTC Pink:LUNMF). The US$6.7 billion transaction recently closed.
Toward the end of the year, Northern Star Resources (ASX:NST,OTC Pink:NESRF) entered into a binding scheme implementation deed to acquire De Grey Mining (ASX:DEG,OTC Pink:DGMLF) and its Hemi gold project.
Under the deal, the total equity value for De Grey is approximately AU$5 billion on a fully diluted basis.
Implementation of the acquisition scheme is expected between April and May 2025.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
The flight landed safely in the middle of the morning, the sun occasionally bursting through the clouds over Guatemala City.
But instead of taxiing to International Arrivals, the plane headed towards the military side of the airport as fighter jets screamed above, weaving around in training exercises.
When the aircraft doors opened, dozens of men and women were ushered onto the tarmac where they were greeted by an emotional Guatemalan Vice President Karin Herrera and other officials and then led into a reception center for returnees.
“Good morning!” one shouted. “How are you, paisanos (countrymen)?”
This was a chartered deportation flight from the United States, an operation that’s gained new attention since the inauguration of President Donald Trump last week and his promises to remove millions of undocumented migrants.
If there was any shame or animosity when the flight left Alexandria, Louisiana, just before sunrise, none of that was evident when the migrants walked back on Guatemalan soil, many shuffling in open sneakers — the laces having been taken by US authorities in a common safety practice, and never returned.
The passengers – all adults on this flight – were welcomed with cookies and coffee and efficient processing in the migrant reception center.
She did not want to discuss the weekend spat between Colombia and the US over the use of military planes, saying her focus was on her citizens.
“We are committed to their integrity and their basic rights,” Herrera said.
Some of the returning Guatemalans had lived and worked in the US for years. Some were fluent in English. But they had all entered without permission or documents and so were subject to deportation.
The migrants left the US as criminals, telling us they were handcuffed on board until they were out of US airspace on their flight south. But whether they were looking forward to being back on home turf or not, the official reception they got was mostly very warm, as if they had been badly missed. A few did remain in handcuffs and were escorted by police, expected to face action for crimes alleged to have been committed in their homeland.
But for the majority, they sat with snacks as names were called and temporary identification papers were handed out. “Undocumented” no more.
They might have skills and abilities that could find them work and a good life back in their home country, benefiting themselves and Guatemala too, officials said.
The returning migrants applauded Herrera after she gave a short speech in the arrival hall but each has their own view on whether they will heed calls to stay.
Sara Tot-Botoz had lived for 10 years in Alabama, working in construction, roofing and car repair, as well as caring for two of her children, now adults, and grandchildren.
She said she had been driving away from a Walmart with one of those grandchildren about seven months ago when she says police pulled her over and cited her for not having him in a car seat.
After her immigration status was discovered, she spent two months in jail in Alabama and then five months in Immigration and Customs Enforcement detention in Louisiana, she said.
Once processed back into Guatemala, she said her first thought was to get out of the shapeless gray sweats she was wearing and into her indigenous clothes. And then to eat some good food.
Tot-Botoz, 43, stood waiting for her belongings. Only a handful of the migrants had suitcases for their things. Most others waited for a large plastic sack to be handed over containing all that they had taken from the US.
As others charged their phones at free power banks to call friends or relatives, Tot-Botoz changed and hurried out onto the street outside.
There was another of her children, a daughter, now 25, who had not seen her mother since she was 15.
The two women hugged each other for a long time, each crying.
They had not been in contact since Tot-Botoz was taken to detention and while there was much to catch up on, for a few minutes they just wanted to hold each other.
But Fidel Ambrocio said he still saw his future in the US.
He said he had lived there for a total of 19 years, first arriving as a teen and voluntarily leaving for a spell in 2018 before heading back north.
He has a wife, a four-year-old daughter and a baby son, born just a couple of months before he was detained, he said, on an old warrant for trespass at the home of his ex-wife’s mother.
Ambrocio, 35, who’d worked in construction in Montgomery, Alabama, seemed almost stunned to be back in Guatemala.
He was also angry, not comprehending why he was deported when most of the rhetoric from Trump and his team has been about sending violent offenders out of the country.
“We’re not criminals,” he insisted, saying he did not consider his offence to be a serious crime.
“If I can never go back, I will try to get my wife and kids here,” he conceded. “That will be very challenging.”
