Key Takeaways
- Tech stocks faced a significant sell-off, driven by AI trade worries.
- Congress is negotiating new limits on immigration enforcement agents and DHS funding.
- Iran changed diplomatic talks with the U.S., engaging in "hardball" tactics.
- Federal regulators are investigating Nike for alleged discrimination against white workers.
- The Washington Post announced cuts of one-third of its newsroom and staff.
Deep Dive
- The NASDAQ closed down 1.5%, marking its fourth down session in five days, due to investor concerns about the AI trade and potential overvaluation.
- Alphabet reported a 30% profit increase and revenue growth in its digital advertising and cloud computing units for the fourth quarter.
- Eli Lilly's fourth-quarter profit and revenue exceeded expectations, with sales of its weight-loss drugs Zetbound and Mounjaro doubling.
- Congress faces a February 13 deadline to fund the Department of Homeland Security and negotiate new immigration enforcement restrictions.
- Democrats are pushing to rein in ICE with demands including body cameras and stricter warrant rules.
- Republicans express skepticism, particularly regarding warrants, and propose ending sanctuary cities.
- Congressional Republicans anticipate needing short-term extensions to fund DHS beyond the deadline due to difficult negotiations.
- The U.S. Supreme Court has allowed California to implement a new congressional map.
- This new map is expected to favor Democrats in the upcoming elections.
- Several states are redrawing districts to influence the balance of power in the House of Representatives for the upcoming midterms.
- Iran altered plans for diplomatic talks with the U.S. and regional officials, opting for a discussion in Oman instead of Turkey.
- This change coincides with Iranian military actions, including a drone launch and harassment of a U.S.-flagged tanker.
- WSJ Middle East correspondent Jared Malsin explains this is a tactic to pressure the U.S. and secure a more favorable negotiation format.