US Stock Market Outlook: Fed's Job Loss Forecast, Silver Hits New High, Mixed Futures.

Market Overview

On Friday morning, the market anticipated a more accommodative Federal Reserve policy, leading to a new high in silver prices and spot gold rising above $4,300. However, concerns about AI persisted after Broadcom's earnings report, resulting in mixed movements in U.S. stock index futures. The Dow futures rose by 0.24%, while the Nasdaq futures fell by 0.54%, and the S&P 500 futures dropped by 0.13%.

Pre-Market Movements

• Tech Stocks: Most star tech stocks fell, with Broadcom (AVGO) down over 6%, and Micron Technology (MU) and AMD both down over 1%.

• Chinese Stocks: Popular Chinese stocks mostly rose, with NetEase (NTES) up over 3%, and Baidu (BIDU) and Li Auto (LI) both up over 1%.

• Gold and Silver Stocks: Gold stocks saw gains, with Coeur Mining (CDE) up over 4%, Pan American Silver (PAAS) up over 3%, and Newmont Mining (NEM), Barrick Gold (GOLD), and Harmony Gold (HMY) all up over 2%.

Cannabis Sector Surge

Reports indicated that the U.S. government would significantly relax cannabis regulations, leading to a surge in cannabis stocks. Tilray Brands (TLRY) rose over 25%, Canopy Growth (CGC) increased by over 19%, and SNDL Inc (SNDL) was up over 14%.

Nvidia's Upcoming Summit

Nvidia is set to hold a closed-door summit next week to address power shortages affecting AI development. The summit will gather startups in the power and electrical engineering sectors, signaling that energy is becoming a critical component in the AI race.

Broadcom's Earnings Reaction

Despite a strong performance, Broadcom's stock fell over 6% as analysts noted the lack of updated guidance for AI revenue growth. Goldman Sachs maintained a positive long-term outlook, raising Broadcom's 12-month target price from $435 to $450, viewing any price weakness as a buying opportunity.

Lululemon's Leadership Change

Lululemon Athletica (LULU) saw a pre-market rise of 9% after reporting better-than-expected Q3 revenue and earnings, while announcing CEO Calvin McDonald will step down on January 31.

Costco's Strong Performance

Costco (COST) reported an 8.2% revenue increase to $67.31 billion, exceeding Wall Street expectations, with online sales soaring by 20%. The stock saw a slight decline in pre-market trading.

Coinbase's New Offerings

Coinbase (COIN) is expected to announce the launch of prediction markets and tokenized stocks next week, aiming to enter two of the hottest financial market segments.

Baidu's Valuation Boost

Baidu (BIDU) is experiencing a reevaluation of its value as expectations rise for its Kunlun chip subsidiary's IPO, with estimates suggesting a significant contribution to Baidu's overall valuation.

Paramount's Acquisition Battle

Paramount Skydance (PSKY) has indicated that its $30 per share offer is not final, with analysts predicting a potential increase to $32, which could test Netflix's (NFLX) response.

Regulatory Developments on AI

President Trump signed an executive order aimed at removing state legislative barriers to AI, allowing the DOJ to review state laws and potentially withholding federal funds from non-compliant states.

Federal Reserve's Employment Concerns

Goldman Sachs highlighted that the Fed may acknowledge systemic overestimations in employment data, which could lead to a shift towards more aggressive easing policies.

Silver Prices Surge

Silver prices continued to rise, reaching new highs, driven by supply-demand imbalances, geopolitical risks, and expectations of a weaker dollar due to potential Fed rate cuts.

Upcoming Economic Indicators

Next week, the Bank of Japan is expected to reaffirm its commitment to rate hikes, while the European Central Bank may signal a potential return to rate increases amid persistent inflation.

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