25% steel and aluminum tariffs? Noted. But Wall Street had other plans. Stocks powered higher Monday, led by energy, software, and chipmakers, as if trade wars were just background noise.

Steel producers took a victory lap—Nucor, Steel Dynamics, and U.S. Steel all jumped—while Tesla took a hit as higher material costs threatened its affordability push. McDonald? Still winning, because burgers are recession-proof.

Meanwhile, investors are eyeing inflation data later this week, but for now? The rally rolls on.

⚡ Closing Bell:

• S&P 500: ⬆️ +0.7% › 6,066.4 › Tech and energy did the heavy lifting.
• Nasdaq 100: ⬆️ +1.0% › 19,714.3 › Software and chips flexed their strength.
• Dow Jones: ⬆️ +0.4% › 44,470.4 › McDonald’s and industrials kept things afloat.
• Russell 2000: ⬆️ Small caps followed the broader rally.

RIP Penny:
And while tariffs and rate cuts dominate headlines, another fight is quietly brewing—the fate of the humble penny. The U.S. Mint is debating whether to finally ditch America’s most neglected coin. Considering it costs nearly four cents to make a single one-cent coin, the question is whether to stop hemorrhaging taxpayer dollars on something people literally refuse to pick up off the sidewalk. It won’t balance the budget, but in a world where every budget cut counts, even pocket change is under scrutiny.

Market Movers:

• Tariff Talk: Trump’s latest round of proposed import tariffs shook up metals stocks, while traders weighed the broader impact.
• Inflation Watch: January’s CPI report drops Wednesday, with producer prices following Thursday. Inflation is expected to hold at 2.9% annually—enough to keep the Fed cautious.
• Powell Prepares: Fed Chair Jerome Powell is set to testify before Congress this week, and markets will be parsing every word for rate-cut hints.

Macro Moves:
➝ 10-Year Yield: ⬆️ 1.4 bps › 4.50%
➝ 2-Year Yield: ⬆️ 0.1 bps › 4.28%

❗ What’s Next? With inflation data and Powell’s testimony coming up, markets will be looking for clues on rate cuts while keeping an eye on trade tensions.

#TRUTH:
❗❗❗ “He who conquers himself is the mightiest warrior.” ~ Confucius

🇫🇷 France AI Supremacy:

While the AI arms race is all about data, there’s one resource that matters just as much: power. And France has plenty of it.

With 57 nuclear reactors generating a steady electricity surplus, the country is positioning itself as Europe’s AI compute hub—and President Emmanuel Macron is going all-in.

The Plan:

• France is pledging 1 gigawatt of nuclear power—enough to run a city—to fuel AI data centers.
• It’s part of a $113 billion investment aimed at making France a leader in AI infrastructure.
• AI firm FluidStack plans to buy 120,000 Nvidia GPUs for the first phase—putting it in the same league as Project Stargate, the U.S.-based mega-cluster.

Big Picture: With AI compute demand skyrocketing, France is betting that cheap, reliable nuclear energy can give it a competitive edge over nations struggling with rising power costs. The AI gold rush needs power—and France is ready to supply it.

$97.4B:

Elon Musk and a group of investors are making a $97.4 billion bid to take control of OpenAI’s nonprofit arm, the entity that technically oversees the AI powerhouse. According to The Wall Street Journal, Musk’s attorney delivered the offer to OpenAI’s board on Monday.

Musk has been a vocal critic of OpenAI’s shift toward commercialization and has called for it to return to its “open-source, safety-focused force for good” roots. The bid comes as OpenAI’s governance structure faces mounting legal challenges.

At the heart of the dispute:

• OpenAI CEO Sam Altman is pushing to convert the nonprofit into a for-profit, a move that Musk strongly opposes.
• If Altman succeeds, the nonprofit would be spun out with an equity stake in the newly structured entity.
• Musk’s investor group, which includes xAI, Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, and Palantir cofounder Joe Lansdale’s 8VC, aims to keep OpenAI under nonprofit control.

The legal battle could determine OpenAI’s future—whether it stays on the commercial path or reverts to Musk’s vision of an open-source AI powerhouse.

And in true tech-world fashion, the drama spilled over to Twitter, where Sam Altman fired back at Musk’s bid with a one-liner that instantly went viral:

“No thank you but we will buy Twitter for $9.74 billion if you want.”

The response, an unmistakable dig at Musk’s infamous $44 billion Twitter takeover, quickly racked up 9.3 million views. Musk, never one to let a slight go unchecked, responded in kind with a single word:

“Swindler.”

The McStruggle & The McExpansion:

McDonald’s Q4 was a tale of two markets—booming international sales and a rough patch in the U.S.

① Not-So-Happy Meal (US Sales Struggle)

• Q4 U.S. same-store sales fell -1.4%, the steepest drop in nearly five years.
• E. coli outbreak in October forced the chain to halt Quarter Pounder sales in 20% of U.S. locations.
• Even McRib hype and a 30% jump in Rewards program sales couldn’t keep foot traffic up.

② Global Expansion = Golden Arches Shine Elsewhere

• Overseas, customers are still lovin’ it—international sales climbed +4.1% in key markets like the Middle East and Japan.
• McDonald’s is on track for 50,000 locations by 2027, the fastest expansion in company history.
• 2,200 new locations planned for 2025, with 1,000 in China alone.

③ Analyst Take: Value Menu to the Rescue?

• Enter McValue 2025—$5 meal deals, BOGO $1 offers, and app promos aimed at reversing U.S. declines.
• Wedbush warns thin margins could be a risk, but cheaper meals could keep budget-conscious customers coming back.

Bottom line: The McStruggle in the U.S. is real, but McDonald’s global expansion is full speed ahead. Will the McValue menu be enough to keep U.S. sales from going stale, or is this just another quarter-pound of pain?

The Art of Panic Buying:

Two things can set markets on fire: tariffs and shortages—and right now, both are in full swing.

➝ Gold soared to a fresh record above $2,942 an ounce before giving back some gains, as new tariffs on steel and aluminum rattled markets. The latest round of levies, set to take effect on March 4, added to global uncertainty, fueling gold’s appeal as a haven asset.

The metal has already gained 11% this year, driven by geopolitical tensions, inflation concerns, and a weaker dollar. Investors are watching Fed Chair Jerome Powell’s testimony this week, looking for clues on rate cuts that could either push gold toward the next big milestone—$3,000 an ounce—or trigger a pause in its rally.

Meanwhile, gold isn’t the only commodity making traders sweat.

➝ Coffee futures in New York surged more than 6% to a new all-time high above $4.30 per pound, marking the 13th straight day of record highs. The cause? A drought in Brazil, the world’s largest producer, and a growing sense of panic buying as supply tightens.

Arabica prices have jumped 35% this year, following a 70% surge last year, and industry insiders warn that coffee shops may have to raise prices or see their margins vanish.

But not everyone is convinced this rally will last. Some traders believe Brazil’s next harvest could be better than expected, which might ease the pressure—if farmers decide to sell. For now, many are holding onto their supply, betting that prices could still go higher.

With gold flirting with $3,000 and coffee hitting records daily, the theme of the week is scarcity—and how much traders are willing to pay to hedge against it.

Highlights of the Day:

① Steel Tariffs Spark a Rally ✅
➝ Nucor (NUE) +5.60% › Trump’s 25% steel and aluminum tariff pledge sent steel stocks soaring.
➝ Steel Dynamics (STLD) +4.86% › Benefiting from trade war tailwinds.
➝ U.S. Steel (X) +4.78% › One of the biggest gainers as tariffs fuel industry optimism.

② Ride-Hailing’s Autonomous Future ✅
➝ Lyft (LYFT) +6.74% › Announced plans to roll out self-driving robotaxis in Dallas next year.
➝ Uber (UBER) +5.38% › Riding high as it preps its own robotaxi expansion with Waymo.

③ Big Tech & Big Bets ✅
➝ Alibaba (BABA) +7.55% › Hedge fund legend David Tepper increased his stake to over $1B, sending shares higher.
➝ Palantir (PLTR) +5.27% › Strong Department of Defense ties continue to drive revenue growth.
➝ T-Mobile (TMUS) +3.86% › Super Bowl ad victory and a Starlink partnership boosted investor confidence.

④ Winners & Losers ❌
➝ GameStop (GME) +9.79% › CEO Ryan Cohen tweeted a picture with Michael Saylor, and that was enough.
➝ McDonald’s (MCD) +4.80% › International sales offset weaker U.S. demand, proving the world still loves Big Macs.
➝ Tesla (TSLA) -3.04% › Higher steel and aluminum costs could hurt EV affordability, dragging the stock down.

⑤ Alibaba’s Hot Streak
➝ Tepper’s Vote of Confidence › Hedge fund manager David Tepper doubled down on Alibaba, calling it a bargain play.
➝ China Trade Boost › The “de minimis” exemption remains intact, helping Chinese e-commerce giants avoid U.S. tariffs.
➝ AI Rivalry › Alibaba claims its AI model is better than OpenAI’s—whether the market believes it is another question.

Commodities Check : ✔️

• Oil: ⬆️ +1.05% › $75.25/bbl as geopolitical tensions and new tariffs fueled volatility.
• Gold: ⬆️ +1.6% › $2,934.40/oz on safe-haven demand.
• Silver: ⬆️ +0.8% › $32.05/oz tracking gold’s strength.

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Disclaimer

This letter is not offering investment, trading, or investment advice nor is based on any individual portfolio or business operation. We are not a registered investment, stock nor commodity advisor. One should consult with their own registered advisor to discuss investment strategies that are appropriate for their business or personal goals, risk tolerance and financial situation. Information in this report and on any website is derived from a variety of source believed to be reliable however no representation is made that the information is accurate, complete or correct. These lessons, newsletter and site content is not intended nor shall not constitute or be construed as an offer or recommendation to “buy”, “sell”, “trade” or invest in any securities, commodities, futures, options or other asset referred to in said lessons, reports or newsletters. Rather, this research is intended to identify situations and circumstances that those in the trading community should be aware of to better help assess and improve their own risk management skills.