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DeepCap Weekly Wrap
The Week at a Glance
| 🎯 | Theme: Trump’s mortgage bond strategy and credit card rate cap influence market sentiment |
| 📊 | Risk Mood: Cautious (VIX 14.49) |
| 💡 | Key Takeaway: Market reactions indicate uncertainty around the impact of proposed rate caps on consumer spending. |
| 🔥 | DeepCap Focus: [Premium] See DeepList Weekly Performance → |
Top 5 Headlines That Shaped the Week
-
Mortgage rates drop to lowest level in nearly 3 years as Trump orders buying of $200 billion in mortgage bonds
This announcement led to a significant drop in mortgage rates, impacting housing markets. -
December’s Jobs Data Reinforces Fed’s Cautious Approach to Future Cuts
Weak jobs data suggests the Fed may hold off on rate cuts, influencing market expectations. -
U.S. economy undershoots expectations to add just 50,000 jobs in December
Disappointing job growth raised concerns about economic momentum, affecting market sentiment. -
Trump’s $200 Billion MBS Order Asserts New Power Over Markets
This move signals a shift in monetary policy, impacting bond and mortgage markets. -
Traders See Almost No Chance of Fed Cut This Month After Data
Market reactions indicate a strong belief that the Fed will maintain current rates, shaping future trading.
The Week in Review
The Big Picture
This week’s dominant theme was policy intervention colliding with softer growth data. The White House’s move to buy mortgage-backed securities and push for a cap on credit-card rates refocused markets on direct policy support for household borrowing costs; mortgage rates fell toward three-year lows and lenders and related names reacted. At the same time December’s jobs print—well below expectations—kept the Federal Reserve on the sidelines for now, easing upward pressure on yields. The result: risk assets nudged higher as short-term rates signalled a still-tight-but-cooling policy backdrop, the dollar eased to EUR/USD 1.16, and the 10-year Treasury settled at 4.17% (a modest decline on the week). Euro-area short rates remain elevated (3M Euribor ~2.03%), keeping regional rate differentials and FX flows in focus.
US Markets
Equities finished the week higher: S&P 500 +0.93%, Nasdaq +1.18%, Dow +1.08%. Tech outperformed marginally, helped by a cluster of large, idiosyncratic gains—Intel rose notably—while smaller-cap and niche names posted outsized moves (Applied Digital +24.8%). The tinvestor was driven by a mix of policy headlines (MBS purchases), a softer-than-expected jobs report that trimmed near-term Fed cut odds, and earnings that showed selective strength rather than broad-based upside. Volatility stayed subdued (VIX 14.49), supporting the equity bid.
EU Markets
Europe also closed higher: STOXX 600 +1.31%, DAX +1.58%, FTSE 100 +1.20%. The region outperformed slightly, led by industrials and materials where merger chatter—Glencore and Rio Tinto—lifted mining-linked names and buoyed the FTSE. Divergence from the US was limited; both markets benefitted from easier bond yields, but Europe’s persistent higher short-term rates (Euribor) and energy-political headlines kept attention on rate differentials and corporate-specific catalysts rather than a unified macro impulse.
5-Day Market Performance
🇺🇸 US Markets
-
S&P 500
+0.93% -
Nasdaq
+1.18% -
Dow Jones
+1.08%
🇪🇺 EU Markets
-
STOXX 600
+1.31% -
DAX
+1.58% -
FTSE 100
+1.2%
Weekly Market Movers
📈 Week’s Top Gainers
- Applied Digital Corporation — +24.77%
- UWM Holdings Corporation — +20.45%
- Compass, Inc. — +18.34%
- Oklo Inc. — +17.88%
- Intel Corporation — +15.7%
- Opendoor Technologies Inc — +15.35%
- Rocket Companies, Inc. — +10.38%
- Ondas Holdings Inc. — +9.26%
📉 Week’s Top Losers
- BitMine Immersion Technologies, — -9.87%
- D-Wave Quantum Inc. — -8.26%
- Plug Power, Inc. — -7.59%
- SoFi Technologies, Inc. — -6.42%
- Grab Holdings Limited — -4.72%
- IREN LIMITED — -4.58%
- NIO Inc. — -4.53%
- Joby Aviation, Inc. — -4.05%
Macro Dashboard
| Indicator | Level | Δ d/d | Δ w/w | 52W Range | Signal |
|---|---|---|---|---|---|
| VIX | 14.49 | -6.21% | -0.14% | 13.47–15.45 | Neutral |
| EUR/USD | 1.16 | -0.85% | — | — | Neutral |
| EURIBOR 3M | 2.03% | 0.0% | 0.0% | 2.02–2.03 | 📈 Sticky |
| US 10Y | 4.17% | -0.24% | -0.71% | 4.11–4.2 | Neutral |
| DE 10Y | 2.87% | +1.41% | -1.03% | 2.81–2.9 | Neutral |
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⚠️ Weekend Watch
Key developments to monitor before markets reopen:
- Monitor potential tensions in Eastern Europe as leaders meet over the weekend regarding ongoing conflicts.
- Watch for key manufacturing data from China that could influence global market sentiment.
- Notable earnings pre-announcements from major retailers could signal consumer spending trends.
- Central bank officials are scheduled to speak, potentially hinting at future monetary policy directions.
- Options expiry this weekend may lead to increased volatility in major indices.
📰 This Week’s Headlines (6 themes)
Rates, Central Banks & Mortgages
Headlines tied to the administration’s large-scale mortgage bond purchases and their immediate effect on mortgage rates, markets and related stocks.
- Trump’s $200 Billion MBS Order Asserts New Power Over Markets — Bloomberg.com
- Mortgage rates drop to lowest level in nearly 3 years as Trump orders buying of $200 billion in mortgage bonds — CNBC
- How Trump’s Plan to Buy Mortgage Bonds Will Affect Rates — Barron’s
- Trump orders mortgage bond purchases to lower rates. These stocks are jumping in response — CNBC
Rates, Central Banks & Mortgages
Policy, rate-path commentary and mortgage-related proposals that affect yields and borrowing costs.
- Traders See Almost No Chance of Fed Cut This Month After Data — Bloomberg.com
- Treasury Secretary Bessent says more Fed rate cuts are ‘only ingredient missing’ for stronger economy — CNBC
- Fed to cut rates slightly this year, CBO forecasts — Reuters
- Trump says he’s instructing his ‘Representatives’ to buy $200 billion in mortgage bonds, claiming it will lower rates — CNBC
Trade & Diplomacy
Tariff dynamics, new trade pacts and legal challenges to trade policy reshaping global trade flows.
- E.U. and South America to Form Free-Trade Zone With 700 Million People — The New York Times
- Will the Supreme Court Scrap Trump’s Tariffs? Here’s What Betting Markets Say. — Barron’s
- How tariff disruption will continue reshaping the global economy in 2026 — BBC
Macro: Labor, Consumers & Growth
U.S. labour-market releases and consumer-focused policy proposals that shape Fed expectations and household finances.
- Trump calls for one-year cap on credit card interest rates at 10% — Reuters
- December’s Jobs Data Reinforces Fed’s Cautious Approach to Future Cuts — The New York Times
- Jobs Report Shows U.S. Hiring Slowed One Year Into Trump’s Second Term — The New York Times
- U.S. Hiring Continues at Modest Pace, but Weaknesses Are Evident — The New York Times
- US economy undershoots expectations to add just 50,000 jobs in December — Financial Times
Macro: Labor, Consumers & Growth
Labor-market data and annual job-creation trends that inform growth and policy outlooks.
- U.S. economy added 50,000 jobs in December as unemployment rate falls — Axios
- US job creation in 2025 slows to weakest since Covid — BBC
Other Market News
Additional headlines across various market themes.
- Stocks Rally to Close Out Big Week as Bonds Slip: Markets Wrap — Bloomberg.com
- Trump says he’ll cap credit-card interest rates at 10% as Americans battle soaring debt — MarketWatch
- Opinion | Trump Is About to Lose Control of the Economy — The New York Times
- Our Roundtable Pros See More Gains for Stocks, Especially Those Left Behind Until Now — Barron’s
- Watch Bloomberg Markets 1/9/2026 — Bloomberg.com
- FTSE 100 Buoyed by Glencore-Rio Tinto Merger Talks — Bloomberg.com
- Bitcoin Stalls at $90,000 as Markets Await Fed, Tariff News — Bloomberg.com
- After Three Hot Years, Will Stock Markets Sizzle Again? — The New York Times
- Venezuelan currency plunges as economy choked by US blockade — Financial Times
- Iran protests sweep nation despite internet shutdown — Associated Press
Social Week-in-Review
What the community was discussing this week:
- Trump: ‘It may be a choice’ between seizing Greenland or preserving NATO — reddit.com/r/Europe
- Daily Discussion Thread for January 09, 2026 — reddit.com/r/WallStreetBets
- Ireland [oc] — reddit.com/r/europe
- UK threatened with sanctions if Britain bans X/Twitter — reddit.com/r/europe
- EU countries approve Mercosur trade deal after 25 years of talks — reddit.com/r/europe
- U.S. oil giants tell Trump they’re noncommittal on Venezuela — reddit.com/r/Economics
- U.S. Has Lost Manufacturing Jobs Every Month Since ‘Liberation Day’ — reddit.com/r/Economics
- Poland removed as host of weightlifting championships for refusing Russian athletes — reddit.com/r/Europe