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
Araghchi to Grossi: These parties will bear responsibility for the consequences of their actions
Araghchi to Grossi: Iran will respond to any unlawful action by European countries or parties attempting to turn the Agency into a tool for achieving their objectives
Araghchi to Grossi: We urge the Agency to warn against the consequences of any political move against Iran
Araghchi to Grossi: We call on the Agency to highlight Iran’s full cooperation during the upcoming Board of Governors meeting next week
Araghchi to Grossi: We demand that the Agency reflect the facts in a manner that prevents certain parties from exploiting it to advance their political agendas
Iranian Foreign Minister Abbas Araghchi holds a phone call with IAEA Director General Rafael Grossi
Trump envoy Witkoff has sent 'detailed and acceptable proposal' to Iran for nuclear deal; it's in their best interest to accept it: White House Press Secretary Leavitt
Hamas official says Witkoff's position toward group was 'unfair' and shows 'complete bias' to 'Israel'
Hamas official says it has considered Witkoff's proposal acceptable for negotiations, says 'Israel's' response was incompatible with what the group agreed on
Hamas official says group has not rejected Wikoff's proposal for Gaza ceasefire

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

US Envoy calls Hamas ceasefire response 'totally unacceptable'

17 Palestinians killed in US-Israeli designated aid zones in Gaza

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

US judges quietly consider private security amid Trump tensions

US judges quietly consider private security amid Trump pressures

  • US & Canada
  • 25 May 2025
President Donald Trump and Israeli Prime Minister Benjamin Netanyahu arrive to a news conference in the East Room of the White House, Tuesday, Feb. 4, 2025, in Washington (AP)

Rift widens: Trump, Netanyahu clash in heated phone call over Iran

  • Politics
  • 26 May 2025
An Israeli army vehicle moves in the Gaza Strip as seen from southern occupied Palestine, Thursday, May 29, 2025 (AP)

Hamas rejects Witkoff ceasefire plan, says alters terms

  • Politics
  • 29 May 2025
Spokesperson for the Yemeni Armed Forces, Brigadier General Yahya Saree, announces a new operation against Ben Gurion Airport on May 29, 2025 (Yemeni Military Media)

Yemen announces successful hypersonic missile strike on Ben Gurion

  • Politics
  • 30 May 2025

Coverage

All
War on Gaza

Read Next

All
MIT bans class president who gave pro-Palestine speech
US & Canada

MIT bans class president over pro-Palestine speech

Arab ministers condemn Israel 'ban' on planned West Bank visit
Politics

Arab ministers condemn Israeli ban on planned West Bank visit

Major General Hu Gangfeng, Vice President, National Defense University, People's Liberation Army, China, leaves after a panel discussion during the 22nd Shangri-La Dialogue summit in Singapore, Saturday, May 31, 2025. (AP Photo/Anupam Nath)
Politics

China blasts Hegseth, calls US top 'troublemaker' in Asia-Pacific

US activists demand shutdown of Musk's 'dirty' supercomputer: Reports
Technology

US activists demand shutdown of Musk's 'dirty' supercomputer: NBC News

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