Beneath the surface calm of the U.S. stock market, undercurrents are stirring. Tech stocks that surged last year are being sold off, with investors shifting into energy producers, consumer goods companies, and small-cap stocks. The cryptocurrency market experienced a correction yesterday, with Bitcoin (BTC) dipping below $90,000 multiple times amid volatility, but recovering above 90K, slightly below 91K by the time of writing. The Trump family's cryptocurrency platform, World Liberty Financial (WLFI), has officially applied for a banking license from U.S. regulators, aiming to fully integrate the issuance, custody, and exchange processes of stablecoins into its own system, reducing reliance on third-party crypto service providers.

Sector Rotation: Market Awaits Non-Farm Payrolls and Tariff Ruling

Beneath the surface calm of the U.S. stock market, undercurrents are stirring. Tech stocks that surged last year are being sold off, with investors shifting into energy producers, consumer goods companies, and small-cap stocks. The rally in global bond markets has also stalled.

The Nasdaq 100 index fell 0.44%, ending its previous three-day upward streak. Tech giants Nvidia and Apple saw significant share price declines, while the S&P 500 index remained essentially flat. Defense stocks surged, boosted by President Trump's plan to increase military spending; meanwhile, the small-cap index soared to a record high as investors continued to sell off tech stocks.

U.S. corporate layoffs in December dropped to their lowest level in 17 months, potentially easing concerns about further economic slowdown. This influenced the 10-year U.S. Treasury yield to rise to 4.18%. Weekly initial jobless claims increased less than expected.

Investors are also awaiting Friday's U.S. non-farm payroll data to gauge potential interest rate trends for the year. Money markets expect at least two rate cuts, each by 25 basis points. Geopolitical tensions are also a market focus, with close attention on U.S. efforts to bring Greenland under its control and developments in the Venezuela situation.

Additionally, the Supreme Court will rule on President Trump's global tariff policy.

Bitcoin Dips Below $90,000 Multiple Times, Trump Family's WLFI Shows Strong Growth

The cryptocurrency market experienced a correction yesterday, with Bitcoin (BTC) dipping below $90,000 multiple times amid volatility, but recovering above 91K by the time of writing.

The Trump family's cryptocurrency platform, World Liberty Financial (WLFI), has officially applied for a banking license from U.S. regulators, with the goal of further expanding institutional adoption of its stablecoin USD1. It aims to fully integrate the issuance, custody, and exchange processes of stablecoins into its own system, reducing reliance on third-party crypto service providers. WLFI has risen 17% in the past week and 32% over the last three months.

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