Trending Market News

Meta plans to cut approximately 10% of its Reality Labs division workforce, affecting around 1,500 employees out of 15,000 total. The cuts will disproportionately impact the metaverse unit, including those working on virtual reality headsets and virtual social networks, and could be announced as soon as Tuesday. This marks a significant retreat from CEO Mark Zuckerberg's heavily-funded metaverse project, which has struggled to gain commercial traction.

• Reality Labs has roughly 15,000 employees, with cuts expected to disproportionately affect the metaverse unit working on VR headsets and virtual social networks
• The metaverse project has underperformed despite massive investment from CEO Mark Zuckerberg, while Meta's Ray-Ban smart glasses have shown early success where competitors like Google and Apple failed
• Meta CTO Andrew Bosworth, who oversees Reality Labs, has called an in-person staff meeting for Wednesday following the expected Tuesday announcement

The FCC revised a rule requiring Verizon to unlock mobile phones after 60 days, responding to concerns that the policy enabled widespread fraud costing the company hundreds of millions of dollars annually. Criminal networks exploited the early unlock requirement to steal and resell devices on the dark web in countries like Russia, China, and Cuba. The change aligns Verizon with standard industry practices that allow longer lock periods.

• Verizon lost an estimated 784,703 devices to fraud in 2023 alone, costing hundreds of millions of dollars
• The 60-day unlock requirement was unique to Verizon and shorter than the industry standard of unlocking postpaid phones after full payment or prepaid phones after one year
• Fraud spiked approximately 55% when TracFone moved from a one-year lock to Verizon's 60-day lock following FCC approval of their transaction

Citigroup is planning to cut approximately 1,000 jobs this week, according to Bloomberg News citing sources familiar with the matter. The layoffs represent the latest workforce reduction at the major financial institution.

• The job cuts are expected to be implemented within the current week
• The information comes from unnamed sources familiar with the restructuring plans
• No official reason or specific departments affected were disclosed in the report

A federal judge granted preliminary approval to Capital One's revised $425 million settlement with depositors who alleged they were denied promised high interest rates on 360 Savings accounts. The approval came two months after the judge rejected an earlier version of the settlement. Capital One also agreed to pay higher interest rates going forward, providing an additional benefit valued at approximately $530 million.

• U.S. District Judge David Novak in Alexandria, Virginia approved the settlement after Capital One agreed to enhanced terms beyond the $425 million cash payment
• The revised agreement includes a commitment to pay higher interest rates on 360 Savings accounts going forward, worth an estimated $530 million according to depositors' lawyers
• The preliminary approval follows the judge's rejection of an earlier settlement accord in November, indicating the initial terms were insufficient

Iran's offshore oil storage has reached a record high of 166 million barrels, equivalent to about 50 days of output, according to shipping data firm Kpler. The buildup is driven by reduced Chinese purchases due to lack of import quotas and high inventories, as well as Iran's strategy to protect oil supplies from potential U.S. military strikes amid domestic unrest and geopolitical tensions.

• Iranian crude and condensate in transit or floating storage hit 166 million barrels in the week ended January 11, a record since Kpler began tracking in 2016
• China, Iran's major buyer, slowed imports in late 2025 due to refiners lacking crude import quotas and elevated domestic inventories
• About half of Iran's offshore oil is positioned near Singapore to reduce geopolitical risk in the Gulf region, as President Trump has warned of possible strikes amid Iran's biggest anti-government protests in years

Italy's antitrust authority reduced Amazon's fine for abusing its dominant position in logistics services to 752.4 million euros ($878.2 million) from the original 1.128 billion euros imposed in 2021. The penalty was recalculated following developments last September, representing a 33% reduction from the initial record fine.

• The fine was originally imposed in 2021 for Amazon's abuse of dominant market position in logistics services
• The reduction amounts to 375.6 million euros, bringing the penalty down by approximately one-third
• The recalculation followed unspecified events in September 2024 that prompted the antitrust authority to reassess the penalty amount

Eli Lilly expressed confidence in supply availability for its weight-loss pill orforglipron ahead of anticipated U.S. FDA approval in the coming months. The drug has received fast-track review status, potentially reducing approval time to 1-2 months versus the typical 10-12 months. Lilly plans to compete with Danish rival Novo Nordisk's recently approved oral weight-loss pill by emphasizing greater convenience.

• Orforglipron received FDA fast-track review voucher, cutting potential approval time to 1-2 months compared to standard 10-12 month timeline
• Lilly's pill offers convenience advantage over Novo Nordisk's oral semaglutide, as it can be taken anytime without fasting or food restrictions
• Company plans rapid global launch across 'many, many countries' following U.S. approval to counter Novo's first-to-market position

Alphabet has reached a $4 trillion market capitalization, becoming the fourth U.S. company to achieve this milestone alongside Apple, Nvidia, and Microsoft. The Google parent company's stock climbed to record highs driven by analyst optimism about its AI capabilities and cloud business growth prospects for 2026.

• Alphabet joins an elite club with Apple, Nvidia, and Microsoft, though Apple and Microsoft have since dropped below the $4 trillion threshold
• Analysts cite Google's competitive advantages in AI, including its Gemini models, custom tensor processing chips, and 'grounding' assets that differentiate it from competitors like ChatGPT
• Google Cloud shows strong AI adoption with 70% of customers using its AI products, positioning the company to capture growing demand for AI infrastructure and services

Nvidia and Eli Lilly announced a $1 billion commitment over five years to build a joint research lab in the San Francisco Bay area, which will utilize Nvidia's newest Vera Rubin AI chips. The partnership aims to accelerate drug discovery and development using AI technology, with researchers from both companies working together at a facility whose location will be announced in March.

• Eli Lilly is already using more than 1,000 of Nvidia's current generation Grace Blackwell AI chips for drug development
• The companies did not disclose whether Nvidia's investment would flow to Lilly to purchase Nvidia chips, a circular arrangement that has raised questions about other Nvidia investments
• Nvidia released new AI models including one for ensuring AI-designed drugs are practical to synthesize in real-world labs, as part of its strategy to supply foundational models for drugmakers' platforms

Novartis has signed a licensing deal worth up to $1.7 billion with SciNeuro Pharmaceuticals to develop antibody treatments for Alzheimer's disease. SciNeuro will receive $165 million upfront and could earn up to $1.5 billion through development, regulatory, and sales milestones plus royalties. The deal gives Novartis access to proprietary technology designed to improve drug delivery to the brain.

• SciNeuro's technology aims to differentiate its antibodies from currently approved Alzheimer's treatments like Leqembi and Kisunla, which have faced limited uptake due to concerns over cost, efficacy, and side effects
• SciNeuro will collaborate on early-stage development before Novartis takes over clinical testing and global commercialization if approved
• The deal reflects industry shift toward novel approaches targeting multiple biological pathways in Alzheimer's, with improved blood-brain barrier penetration as a key differentiator

Meta announced on Monday that Dina Powell McCormick is joining the social media company in the newly created roles of president and vice chairman. The appointment represents a significant executive addition to Meta's leadership team, though the company provided limited details about her responsibilities or start date.

• Powell McCormick will hold dual titles as president and vice chairman at Meta
• The announcement was brief with no details provided about her specific responsibilities or strategic focus areas
• This marks a notable C-suite expansion for Meta as it continues to reshape its executive leadership structure

Sweden's Foreign Minister Maria Malmer Stenergard called for the EU's 20th sanctions package against Russia to include a complete ban on European companies providing services to Russian oil, gas, and coal shipping fleets. The proposed measures also include sanctions on Russian fertilizer exports and a halt to luxury goods exports to Russia, aimed at increasing economic pressure on Moscow for its invasion of Ukraine.

• Proposed shipping ban would prohibit European companies from providing transport, ship-to-ship transfers, insurance, and port repairs for Russian energy vessels
• Russia produces over 20% of the world's fertilizer and supplies approximately 25% of EU fertilizer imports; the EU previously imposed tariffs on Russian fertilizer in July of last year
• The EU has imposed 19 sanctions packages against Russia since the 2022 invasion, with previous measures heavily targeting Russia's oil and gas sector, the Kremlin's primary revenue source

Moderna projects $1.9 billion in sales for 2025, near the upper end of its forecast but far below pandemic-era peaks of $18.4 billion in 2022. The company cut operating expenses by $200 million and expects to end the year with $8.1 billion in cash as it seeks to stabilize revenue through new vaccine launches.

• U.S. retail vaccination rates fell approximately 26% year-over-year, at the lower end of Moderna's projected 20-40% decline range
• Operating expense forecast reduced by $200 million to $5.0-5.2 billion range; cash position increased to $8.1 billion from prior $6.5-7.0 billion forecast
• Company targets up to 10% revenue growth in 2026 (potentially reaching $2.1 billion) with anticipated regulatory approvals for standalone flu vaccine and COVID-flu combination shot, expected to boost revenue in 2027

Lululemon Athletica announced on Monday that it expects fourth-quarter revenue and profit to reach the high end of its previously issued forecast range. The improved outlook is driven by strong consumer demand during the holiday shopping season. This positive guidance suggests the athletic apparel retailer performed well during the critical year-end period.

• The company raised its expectations within its existing Q4 forecast range, indicating better-than-anticipated holiday sales performance
• Strong holiday demand drove the upward revision, suggesting continued consumer appetite for Lululemon's premium athletic wear despite broader economic concerns
• The announcement provides an early positive signal for the athleisure retail sector heading into 2025 earnings season

The Trump administration threatened to indict Federal Reserve Chair Jerome Powell over testimony about a building renovation, which Powell called a 'pretext' to influence interest rate policy. Powell responded forcefully, denying the allegations and asserting Fed independence, while Republican Senator Thom Tillis pledged to oppose future Fed nominees until the matter is resolved. Markets showed limited immediate reaction, though the dollar fell and gold hit record highs.

• Powell stated the threat is 'not about my testimony' or renovations but rather 'a consequence of the Federal Reserve setting interest rates based on our best assessment' rather than 'following the preferences of the President'
• Senator Tillis said the threatened indictment questions DOJ's 'independence and credibility' and vowed to block all Trump Fed nominees until the legal matter is resolved
• The dollar fell by the most in three weeks while gold reached record highs, though rate markets showed minimal change with only slightly higher odds of near-term cuts

Uber faces its first U.S. federal court trial this week in Phoenix over allegations a driver sexually assaulted a passenger, serving as a test case for over 3,000 similar pending lawsuits. The outcome could significantly impact potential settlements and affect Uber's balance sheet while drawing continued scrutiny from regulators and investors. Uber maintains drivers are independent contractors and argues it cannot be held liable for criminal acts outside the scope of their duties.

• The trial is a 'bellwether' case that could determine settlement values for more than 3,000 consolidated federal lawsuits, plus over 500 additional cases in California state court
• Plaintiff Jaylynn Dean alleges Uber was aware of widespread driver assaults but failed to implement basic safety measures; Uber previously won a California trial in September where negligence was found but not deemed a substantial cause of harm
• Uber has invested in safety features including in-app verification, ride recording, and anomaly detection, publishing Safety Reports showing thousands of sexual assault reports, though the company unsuccessfully sought to delay trial claiming plaintiff attorneys tainted the jury pool

Investors are rapidly buying gold and European defense stocks in response to U.S. President Trump's threats to seize Greenland from Denmark, fearing potential breakdown of NATO and the global order. Gold hit record highs while European defense stocks surged over 10% last week, though investors struggle to position for longer-term implications of this geopolitical rift.

• Gold jumped more than 4% last week and reached a new record high on Monday, while European defense stocks posted their biggest weekly gain in over five years with a 10% jump, led by Rheinmetall (up 19%) and Saab (up 22%)
• A forcible U.S. takeover of Greenland from NATO ally Denmark could end the military alliance and upend the global order established since World War II, according to analysts
• Beyond gold and defense stocks, investors find it difficult to price geopolitical risk, with some warning that U.S. actions 'breaking the rules of the road' could prompt asset reallocation away from U.S. markets toward Europe and Asia

Eutelsat, a satellite operator backed by French and British governments, has ordered 340 satellites from Airbus to refresh its OneWeb low-Earth-orbit constellation. Combined with a previous order of 100 satellites, the total reaches 440 units with deliveries starting late 2026. This expansion positions Eutelsat as Europe's main competitor to Elon Musk's Starlink for space-based internet services.

• Total program cost estimated at 2 billion to 2.2 billion euros ($2.3-2.6 billion) between 2024 and 2029, with satellites replacing aging units launched six years ago
• Eutelsat operates the only other low-Earth orbit constellation besides Starlink, providing broadband connectivity to underserved areas for businesses, governments and consumers
• France led a 1.5-billion-euro capital increase last year, reflecting European government support for maintaining an independent satellite internet capability

Gold surged to a record high above $4,600 per ounce on Monday, driven by investigations into Federal Reserve Chair Jerome Powell, geopolitical tensions involving Iran and Venezuela, and safe-haven demand. The precious metal has gained approximately 6% year-to-date and saw a nearly 65% increase in 2025, marking its strongest performance in decades.

• Federal prosecutors are investigating a probe of the Fed's headquarters and Powell's Congressional testimony, potentially leading to earlier leadership change favoring aggressive rate cuts, which supports gold prices by reducing opportunity cost of holding non-yielding assets
• Geopolitical flashpoints including U.S. military action in Venezuela resulting in President Maduro's capture and renewed tensions with Iran over nuclear facilities are amplifying safe-haven demand
• HSBC projects gold could reach $5,000 per ounce by mid-2026, supported by a weaker U.S. dollar, mounting fiscal deficits, and continued central bank diversification away from dollar reserves despite elevated volatility

Oil markets are focused on the Strait of Hormuz as the U.S. considers potential military action against Iran amid domestic protests there. The strait carries nearly a third of global seaborne crude oil (13 million barrels per day), making it one of the world's most critical energy chokepoints. A full closure could spike oil prices by $10-20 per barrel, though analysts view this as a low-probability scenario.

• About 31% of global seaborne crude (13 million barrels per day) transits the Strait of Hormuz, with Chinese refiners particularly exposed to potential disruptions
• Analysts estimate oil prices could surge $10-20 per barrel in a complete closure scenario, though most see 70% likelihood of only selective U.S. strikes rather than full military confrontation
• Experts note Iran likely lacks capability to fully close the strait given U.S. naval presence, and current oil market oversupply of 2.5-3 million barrels per day could cushion impact