Welcome to the MarketReader Minute.

Below are AI-generated insights on today’s premarket moves, powered by MarketReader technology.

If you find the insights useful, you may subscribe to our new sector-specific newsletters or share this on Twitter.

Monday, February 24

Noteworthy macro moves today: Ethereum -4.7%. Natural Gas -7.3%. Noteworthy US mega-cap moves today: Alphabet Inc (GOOGL) +1.8%. Alphabet Inc (GOOG) +1.7%. Apple Inc (AAPL) -1.3%. 

The German DAX is experiencing gains following the recent federal election, where the conservative CDU emerged as the leading party. However, coalition negotiations are expected to be complex due to significant support for both far-right AfD and leftist parties that could complicate governance efforts. This political uncertainty has led investors to remain cautious despite initial optimism.

In economic data releases today, Germany's Ifo Business Climate indicator remained unchanged at 85.2 in February but fell short of expectations; while companies expressed more optimistic future outlooks, their current assessments worsened significantly. Additionally, Eurozone inflation was confirmed at a six-month high of 2.5%, driven by rising energy costs which may influence European Central Bank policy moving forward.

On the U.S side, futures indicate a potential rebound after last week's sharp declines attributed largely to disappointing consumer sentiment and concerns over tariffs announced by President Trump on various imports including automobiles and pharmaceuticals. These developments have raised fears about escalating trade tensions impacting global growth prospects further this week ahead of key economic reports such as GDP figures scheduled for Thursday.

Ethereum (ETH/USD) [-4.7%]
The cryptocurrency market is currently experiencing significant turmoil following a massive hack on the Bybit exchange, resulting in the theft of $1.4 billion worth of Ethereum (ETH). This incident, the largest exploit in crypto history, has raised concerns about security and stability within the sector. Bybit has since announced that it has fully acquired the lost ETH and restored its reserves, recovering approximately 446,870 ETH through loans and whale deposits. Concurrently, a security breach at Infini led to a loss of $50 million in USDC, which was converted to purchase nearly 18,000 ETH. The market is also facing bearish sentiment due to proposed tariffs from U.S. President Donald Trump and weak consumer sentiment data. As a result, ETH/USD is experiencing downward pressure with a daily return reflecting a significant drop. Open interest in the market has decreased notably since the hack.

iShares MSCI Germany ETF (EWG) [+1.3%]
The iShares MSCI Germany ETF (EWG) has experienced a daily return of 1.22%, reflecting positive sentiment following the confirmation of the CDU/CSU as the leading party in Germany's elections, which may lead to pro-growth policies. Despite Germany's Ifo Business Climate Index for February falling short of expectations, a coalition government formation between CDU/CSU and SPD seems likely, buoying German stocks. The DAX opened higher, with most components rising. Additionally, Eurozone inflation has reached a six-month high, driven by rising energy costs, potentially influencing monetary policy decisions. Notably, SAP and Deutsche Bank have contributed significantly to EWG's performance, with both stocks increasing. Meanwhile, the Dow Jones Index has also risen, suggesting a broader market sentiment that may correlate with movements in European equities.

BABA | -3.5% | -94.6B
Alibaba Group Holding Ltd | Broadline Retail
Alibaba Group Holding Ltd announced a substantial investment of approximately 52.4 billion in cloud computing and artificial intelligence over the next three years. This investment is expected to exceed the company's total spending in these sectors over the past decade. Following the announcement, which coincided with a recent earnings report revealing a revenue of 280.15 billion yuan for the December quarter, shares dropped by 3% in premarket trading. The investment plan has sparked discussions on social media, where Alibaba's commitment is viewed as China's largest private investment in AI and cloud infrastructure. Additionally, Morgan Stanley upgraded Alibaba from equal weight to overweight, raising its price target significantly. Meanwhile, JD.Com experienced a decline, which may be influencing Alibaba's share price movement given their historical correlation.

DPZ | -4.9% | -749.4M
Domino's Pizza Inc | Restaurants
Domino's Pizza Inc reported its Q4 financial results, revealing U.S. same-store sales growth of 0.4%, falling short of the expected 1.63%. Revenue for the quarter reached $1.44 billion, missing the consensus estimate of $1.48 billion. Earnings per share were reported at $4.89, slightly below the anticipated $4.90. The company attributed these results to increased competition in the fast-food sector and shifting consumer spending habits amid rising menu prices. Despite the underperformance, Domino's announced a 15% increase in its quarterly dividend to $1.74 per share. Following the earnings announcement, shares experienced a decline of approximately 4% in premarket trading. Year-over-year, net income stood at $169.4 million, reflecting a 7.7% increase, while revenue grew by 2.9%.

AAPL | -1.4% | -51.4B
Apple Inc | Technology Hardware, Storage & Peripherals
Apple Inc. has experienced a decline in its stock price, moving lower alongside the Technology Hardware, Storage & Peripherals sector. The company recently announced a significant investment plan, committing over $500 billion in the U.S. over the next four years. This initiative will focus on artificial intelligence, silicon engineering, and skills development for American workers. A new manufacturing facility in Houston is set to create thousands of jobs by 2026, while Apple plans to double its U.S. Advanced Manufacturing Fund to $10 billion. Additionally, the company aims to hire approximately 20,000 employees in R&D, software development, and AI-related roles across the country. Despite this positive news, AAPL shares fell by 1.3% to $242.37 in premarket trading, amid concerns regarding potential tariffs from former President Trump.

PLTR | -5.5% | -11.9B
Palantir Technologies Inc | Application Software
Palantir Technologies Inc. has experienced significant stock pressure, reflecting a 19% decline over the past three days. This downturn aligns with concerns about potential U.S. defense spending cuts, which may negatively affect the company due to its reliance on Department of Defense contracts. Compounding these issues, CEO Alex Karp's announcement to sell up to $1.2 billion in shares has added to market unease. Social media discussions reveal a mixed sentiment, with some users downgrading their ratings and others expressing bullish expectations despite recent volatility. The stock has lost over 20% in just two days, while some analysts caution about potential revenue deceleration in Palantir's government sector. Additionally, discussions highlight a P/S ratio nearing 99, raising concerns about valuation amidst ongoing market fluctuations.

SMMT | +4.1% | +672.2M
Summit Therapeutics Inc | Biotechnology
Summit Therapeutics Inc. has experienced a notable price increase, aligning with the broader market's upward movement. The company announced a clinical trial collaboration with Pfizer to evaluate ivonescimab, a bispecific antibody, in conjunction with various Pfizer antibody drug conjugates across multiple solid tumor settings. This collaboration is set to begin mid-2025. Additionally, Summit completed enrollment for its Phase 3 HARMONi trial focused on second-line advanced non-small cell lung cancer, with topline data expected in mid-2025. Financially, Summit reported a Q4 2024 adjusted EPS loss of $(0.07), surpassing the consensus estimate of $(0.08). Total operating expenses for the quarter were $65.8 million. The positive sentiment surrounding these developments is reflected in the stock's recent performance.

Thank you for spending a minute with us. 

If you have 2 more minutes, watch this demo of the MarketReader Platform: