Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
IRGC: We have identified and monitored the departure points of the US aircraft that carried out the aggression
IRGC: America has neither the initiative nor the ability to escape the consequences of a powerful response
IRGC: We strongly affirm that Iran's peaceful nuclear technology cannot be destroyed by any attack
Iran's IRGC: Washington has placed itself directly on the frontline of aggression by attacking peaceful facilities
Iran's IRGC: The number, scope, and size of US military bases in the region are not a point of strength, but rather a point of weakness
Tasnim News Agency: Iran's Fordow nuclear facility was only partially damaged by US strikes
UK trade minister Reynolds: We were not involved in Iran attacks but we were informed
Senior Iranian source to Reuters: The number of personnel at the Fordow site had been reduced to a minimum
Senior Iranian source to Reuters: Most of the highly enriched uranium at Fordow was moved to an undisclosed location prior to US attack
Iran's IRGC: The most significant capabilities of the Armed Forces of the Islamic Republic of Iran in this sacred defense have not yet been deployed

DeepSeek and the dollar are spoiling ‘Trump trades’: FT

  • By Al Mayadeen English
  • Source: The Financial Times
  • 28 Jan 2025 15:23
3 Min Read

A Financial Times report suggests that ahead of Trump's re-inauguration, investors are uncertain about the "Trump trade" due to a weakening dollar, volatile US tech stocks, and China's new AI initiative.

Listen
  • x
  • DeepSeek and the dollar are spoiling ‘Trump trades’: FT
    The logo for the app DeepSeek is seen on an iPhone on January 27, 2025, in Washington. (AP)

The Financial Times (FT) reported Tuesday that mere hours before Donald Trump was re-inaugurated as US president last week, Goldman Sachs hosted its annual investment summit in London. A dominant theme among attendees—particularly hedge funds and speculative investors—was the dollar, a focal point of the so-called "Trump trade."

According to FT, while Trump's economic agenda remains challenging to predict, many investors appeared confident that his presidency signals a strong dollar. This belief stems from expectations of US exceptionalism, stubborn inflation, or both. One of Goldman’s senior traders described the trade on the dollar—particularly against the Chinese renminbi—as “the most obvious trade in the world.”

However, the report notes that Trump's fiery rhetoric during his inauguration challenged this assumption. Revisiting his campaign focus on tariffs, Trump targeted Mexico and Canada instead of China, his previously stated primary economic rival. This unexpected shift led to a sharp rise in the Chinese renminbi and caused the dollar to weaken against major currencies, including the euro, yen, and sterling.

The FT report underscores growing challenges for investors banking on Trump’s second term. US markets were motivated by Trump’s promises of deregulation, lower taxes, and prioritizing American goods, with an added boost from the country’s dominance in artificial intelligence (AI). 

Related News

European nations urge de-escalation, talks only after US struck Iran

Wave of Arab, Islamic condemnations follows US airstrikes on Iran

Rise of 'DeepSeek'

According to the report, China's new AI initiative, "DeepSeek," disrupted market sentiment, triggering a massive sell-off in US tech stocks, including an unprecedented $600 billion loss in Nvidia's market value in a single day.

The FT report highlights the fragility of the US stock market’s reliance on a handful of tech giants. French bank Société Générale noted that seven AI-linked US companies alone account for one-third of the S&P 500 index. Without Nvidia and its top customers—Microsoft, Google, Amazon, and Meta—the index would be roughly 12% lower.

Analysts are recommending diversification. “Tilting towards an equal-weighted S&P 500, rather than the tech-heavy version, makes sense,” said Manish Kabra, head of US equity strategy at Société Générale.

European stock markets in Germany and the UK have hit record highs since Trump’s return, showing opportunities outside the US. However, the FT warns that any major challenge to US Big Tech could shake global markets.

The weakening dollar and volatile US equities have raised doubts about the reliability of the so-called "Trump trades." The report warns that investors counting on a strong dollar, dominant US tech, and global market dominance will face a bumpy ride in the era of Trump 2.0.

  • United States
  • DeepSeek
  • trade war
  • Trump trade
  • Donald Trump

Most Read

Iran launches 9th wave of Op. True Promise 3, destroys IOF air defense

Iran launches 9th wave of Op. True Promise 3, destroys IOF air defense

  • MENA
  • 17 Jun 2025
Rescue team work at the site where a missile launched from Iran struck Tel Aviv, Israel, Monday, June 16, 2025 (AP)

Wave 12 of Operation True Promise 3 launched, Sejjil deployed: IRGC

  • Politics
  • 18 Jun 2025
Iran launches missile barrage to Tel Aviv, casualties reported

True Promise 3, wave 14: Tel Aviv targeted, casualties reported

  • Politics
  • 19 Jun 2025
Iran's heavy barrages impact multiple Israeli targets overnight

Iran's heavy barrages impact multiple Israeli targets overnight

  • Palestine
  • 18 Jun 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Iran’s Bavar-373 air defense system on display during a military drill (Mehr News Agency)
Politics

Iran intercepts Israeli drones near Tehran, multiple cities

The Israeli Iron Dome air defense system fires to intercept missiles during an Iranian attack over Tel Aviv, Occupied Palestine, Sunday, June 15, 2025 (AP)
Politics

Iran warns aid to 'Israel' will be treated as aggression

US President Donald Trump arrives to board Air Force One at Joint Base Andrews, Friday, June 20, 2025, en route to Montclair, New Jersey (AP)
Politics

Trump, Erdogan made covert attempts to hold talks with Iran: Axios

Ansar Allah supporters surround a giant Iranian flag during an anti-US and anti-'Israel' weekly rally in Sanaa, Yemen, Friday, June 20, 2025 (AP)
Politics

US ships in Red Sea will be targeted if US attacks Iran: YAF

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS