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Recapping Week 5: AI Scares, Fed Cheers, and Housing’s Hot Gossip
January 27, 2025 - January 31, 2025
Hey, it’s Ary from ESNQ News, where you’ll understand what’s happening with the S&P 500, Nasdaq, and economic data in plain English.
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Alright, let’s get into it:
Table of Contents
⏳️ TL;DR
Big Tech just got a curveball thrown at it by a Chinese AI model, and stocks didn’t love it.
The Fed isn’t changing rates—so no surprise bills on your credit card interest just yet.
The housing market’s got a few more listings, but prices aren’t exactly slouching.
📰 Recapping Week 5
1. AI Model Drama Sends Stocks Spinning
What happened: A new AI model from China’s DeepSeek has everyone talking—and not in a “check out my Spotify Wrapped” kind of way. Nvidia tumbled 13%, pulling the Nasdaq down 3.5% and the S&P 500 down 1.9%.
Impact on your wallet: If you’ve got money in tech ETFs or stocks, you might have flinched looking at your portfolio. But unless you’re planning to cash out and buy a Taylor Swift ticket, it’s more of a “hold tight” moment.
2. Fed Plays It Cool on Rates
What happened: The Federal Reserve decided not to rock the boat, keeping rates steady at 4.3%—which is a fancy way of saying your credit card bill isn’t going to get sneakier interest charges (for now).
Impact on your wallet: No new rate hikes means you can keep sipping that overpriced oat latte without worrying about your car loan my wife’s Sephora subscription suddenly costing more.
3. Housing Market’s Inventory Glow-Up
What happened: Houses got a little less scarce—sales jumped 3.6% in December, and the median price now sits at $427,000. It’s like when Trader Joe’s finally restocks that snack everyone’s been searching for because some TikTok influencer made it go viral: more options, but not necessarily cheaper.
Impact on your wallet: If you’re on Zillow every night, you’ll see more homes popping up. Just don’t expect a clearance sale—prices are still climbing, so you’ll want to keep that pre-approval letter in that back pocket.
🔑 Key Takeaways
Tech Tumbles: A major AI flex from China has Big Tech feeling insecure, like me in my high school days listening to emo music.
Rates Hold Steady: No surprises on loan interest means you can chill (for now).
Housing Heats Up: More listings, but keep saving up—it’s not a bargain bin out there.
📑 Glossary
Federal Reserve (Fed): The group that decides if your credit card interest rate needs to be scary.
Interest Rate: How much extra you pay on loans or credit balances.
Median Home Price: The “middle child” of home prices—half cost more, half cost less.
Nasdaq Composite: The stock index where all the tech kids hang out.
S&P 500: A stock index with 500 companies that gives you the vibe of the overall market.
Friday's Drama Recap
End-of-Month Shenanigans: Tariffs made headlines, but it’s month-end, and you know the drill—big players marking up portfolios. They gotta sell into strength, and that’s exactly what happened.
Key Point: We didn’t take out the previous day’s low. Competitive buying kicked in late, but that was just end-of-day noise.
Sunday Night Setup
