Stocks Fall on 1 Trillion Tech Crash-Market Analysis for Feb 4th, 2025
Global Markets
Canadian Markets
Canadian stocks moved higher, with gains driven primarily by financial stocks and energy sectors, with oil prices rising amid escalating geopolitical tensions in the Middle East. Rosenberg Research warned that Canada is nearing recession, characterizing the economy as being “on life support.” The firm highlighted persistent weakness in per capita GDP, which continues to contract, and noted that overall economic growth is running at just 1% annually. Rosenberg Research forecasts that the Canadian economy will shrink by an annualized 0.5% quarter-over-quarter in the fourth quarter, materially weaker than the Bank of Canada’s flat (0.0%) growth forecast. The report underscores growing downside risks to the Canadian economic outlook despite short-term market resilience.
American Markets
U.S. markets sold off broadly, led by a sharp decline in Advanced Micro Devices (AMD), which plunged more than 17%. While the company reported earnings that exceeded consensus estimates, investors focused on underlying concerns within the report. These included the contribution of a one-time revenue item, which raised questions about the sustainability of recent growth, as well as softer-than-expected forward guidance, particularly around demand and supply visibility. The reaction weighed heavily on the broader technology sector and reinforced sensitivity around earnings quality rather than headline beats. In addition, Anthropic’s news fears about the ability of AI to disrupt many industries including
The launch of Anthropic’s new legal AI tool highlights the AI industry’s push into high-value enterprise markets to generate sustainable revenue and support the rising costs of model development. As progress in core AI capabilities slows, companies like Anthropic and OpenAI face growing pressure to justify lofty valuations by demonstrating real-world monetization. This shift toward industry-specific tools, particularly in sectors such as law, finance, and coding, is driving efficiency gains but also raising concerns about disruption, regulation, and job displacement, which played out in the market as traders sold technology stocks based on these fears of a whole economic disruption.
European Markets
European markets traded mixed, with weakness concentrated in healthcare and select defensives. Novo Nordisk fell more than 6% after issuing a weaker outlook, dampening sentiment toward the region’s growth leaders. Eurozone inflation eased to 1.7% in January, reinforcing expectations that price pressures continue to normalize, wirh economic data showing continued weakness.
UK stocks mved higher, as the pound rose, with economic data showing both services and manufacturing PMI readings rising, signaling renewed momentum across key sectors of the economy.
Corporate Stock News
Allied Gold Corp (AAUC:CA): National Bank of Canada raised its target price to C$44 from C$41 following the agreement for Zijin Gold to acquire Allied Gold for C$44 per share in cash.
Amazon.com Inc (AMZN): Analysts expect fourth-quarter physical store revenue to rise 5.4% year over year to $5.9 billion, with overall earnings projected at $1.97 per share. Separately, AWS said space-based data centers are not practical due to cost and logistical challenges.
Amcor Plc (AMCR): Missed second-quarter sales estimates, posting revenue of $5.45B vs. $5.58B expected, while adjusted EPS slightly beat. Fiscal 2026 outlook was maintained.
Amgen Inc (AMGN): Reported Q4 earnings and revenue above expectations, raised confidence in its pipeline, and issued solid 2026 guidance.
Atmos Energy Corp (ATO): Posted a 14.5% increase in first-quarter profit, driven by strong gas distribution and pipeline demand.
Ball Corp (BALL): JPMorgan raised its price target to $60 from $50, citing a rebound in aluminum packaging volumes and stronger execution.
Boeing Co (BA): Plans the first flight of a production 777X in April and expects to begin deliveries of improved 787 Dreamliners in the first half of the year.
Bunge Global SA (BG): Beat fourth-quarter adjusted profit estimates, supported by strong performance across all segments.
Chipotle Mexican Grill Inc (CMG): Plans to raise menu prices, forecasts flat same-store sales for fiscal 2026, and slightly beat quarterly estimates.
Clorox Co (CLX): Missed second-quarter profit expectations but reaffirmed its full-year outlook.
Coca-Cola Co (KO): Jefferies raised its target price to $88 from $84, citing strong organic growth and improving ROIC.
Cognizant Technology Solutions Corp (CTSH): Forecast annual revenue above estimates, driven by AI-related IT services demand.
Corteva Inc (CTVA): Missed fourth-quarter sales estimates and issued full-year operating profit guidance.
Dycom Industries Inc (DY): JPMorgan raised its target price to $395 from $370, citing strength in communications infrastructure demand.
Emerson Electric Co (EMR): Reported higher first-quarter profit and raised the lower end of its 2026 EPS forecast.
Ford Motor Co (F): In discussions with Geely on potential manufacturing and technology partnerships in Europe.
Goldman Sachs Group Inc (GS): Reuters reported scrutiny related to historical legal matters involving a senior executive.
Jacobs Solutions Inc (J): Raised the lower end of its annual profit forecast, driven by data center infrastructure demand.
Jack Henry & Associates Inc (JKHY): Reported strong second-quarter results, supported by demand for banking technology.
KKR & Co Inc (KKR): A KKR-led consortium agreed to acquire full control of ST Telemedia Global Data Centers in a deal valuing the business at S$13.8 billion.
Match Group Inc (MTCH): Forecast first-quarter revenue above estimates, signaling early progress in its turnaround.
Mondelez International Inc (MDLZ): Issued a cautious 2026 outlook due to consumer trade-down and cocoa cost pressures.
Nvidia Corp (NVDA): Reportedly nearing a $20B investment in OpenAI, while China chip exports remain under review.
PayPal Holdings Inc (PYPL): Jefferies cut its target price to $40 from $60, citing weak branded checkout growth.
Silicon Laboratories Inc (SLAB) / Texas Instruments Inc (TXN): Texas Instruments is reportedly in advanced talks to acquire Silicon Labs for about $7B.
Skyworks Solutions Inc (SWKS): Forecast second-quarter earnings and revenue above estimates, driven by 5G chip demand.
Suncor Energy Inc (SU): Beat fourth-quarter profit estimates as higher production offset weaker commodity prices.
Super Micro Computer Inc (SMCI): Raised its annual revenue forecast to at least $40B, reflecting strong demand for AI servers.
Take-Two Interactive Software Inc (TTWO): Raised its annual bookings forecast ahead of the launch of Grand Theft Auto VI.
Tesla Inc (TSLA): Reported a third straight monthly increase in China-made EV sales in January, though full-year sales declined.
Veralto Corp (VLTO): Forecast 2026 adjusted EPS below expectations, citing cautious industrial
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