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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.

If you’re seeing this, you’re part of the A/B test I’m running to see which format performs better.

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

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