It was bound to happen at some point — OpenAI is rolling out ads in ChatGPT for real after refuting earlier reports of ads. The company is starting to test ads with users of the $8-per-month ChatGPT Go product as well as the free tier of the chatbot. OpenAI listed some guiding principles, including a promise it won’t show ads to minors or on answers to sensitive topics. In a Truth Social post on Saturday, Trump warned that the US would impose tariffs on several European countries, unless a deal is reached for the “Complete and Total purchase of Greenland.” With US markets closed for MLK Day, European stocks bore the brunt of a risk-off day of trading, with the STOXX 600 shedding 1.2%. 🧠 Test your knowledge with the Snacks Seven Quiz. Here’s a sample question: |
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The relentless slide in software stocks last week continued through Friday, with the iShares Expanded Tech Software ETF (or IGV) trading to the downside and down nearly 6% over the course of the week. |
- The growing adoption of Claude Code, and more recently, the launch of Claude Cowork by Anthropic, has been an attention-grabbing moment as to the power of AI agents and how they can be housed and operated solely under one highly integrated user interface.
- To say that software stocks have fallen out of favor would be an understatement, as having this much industry-specific market pain is incredibly rare.
- Based on data going back to 2001, if IGV has fallen at least 5% over the past month, the SPDR S&P 500 ETF is typically also down between 5% to 6% over the same period.
- Less than 3% of the time does SPY rise at least 1% while software stocks have gotten slammed — 28 instances in total, going back to August 2001 — and three of those are the past three sessions.
- A smattering of once high-flying, expensive software stocks, including Salesforce, Adobe, and Atlassian, have all seen their enterprise value compress to below 5x their estimated sales (from as high as 40x in 2021).
- AI agents are able to develop software and handle the tasks and processes that served as the core value proposition of these companies.
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Doug O’Laughlin, president of SemiAnalysis, authored a thought-provoking piece in which he argued that “Claude Code is the ChatGPT moment repeated.” |
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It’s a fire alarm moment for software, which risks being perceived as the horse-drawn carriage manufacturer the moment that engineers first seized the power of steam. “What I’m trying to say is that the traditional differentiation metrics will change,” O’Laughlin wrote. “Faster workflows, better UIs, and smoother integrations will all become worthless, while persistent information, a la an API, will become extremely valuable.” As the marginal corporate dollar goes directly to AI rather than software or labor, it makes sense that investors’ dollars appear to be doing the same thing. |
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Democratizing innovation: Nasdaq x CME |
The Nasdaq-100 Index® is home to 100 of the most innovative companies listed on the Nasdaq Stock Market® — from the Mag 7 to new entrants like Walmart (WMT) and Western Digital (WDC). With a focus on “new economy” sectors like technology, consumer services, and healthcare the index represents the Benchmark of the 21st Century. Through our partnership with CME Group on products like the E-mini Nasdaq-100 and Micro E-mini Nasdaq-100 futures contracts, Nasdaq is empowering investors of all types to participate in innovation through cutting-edge investment products. Learn more about the Nasdaq and CME partnership and how it helps democratize access to markets through products that track the Nasdaq-100. |
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Stories we’re obsessed with |
- Silver is the new gold, but… On one baubled hand, silver is holding on to its gold medal, at least with retail traders, who have made the iShares Silver Trust the top trending ticker in the r/WallStreetBets subreddit over each of the past 12 hours, 1 day, and 1 week. On the other hand, strategists warn the shine is off: key parts of the fundamental and technical theses for silver are starting to look less solid, so it may be time for bearish puts against the precious metal.
- Can Sandisk stack back-to-back titles? Though we’re only two weeks into the year, Sandisk is making a strong early case for its name to be added to the annals of stock market lore. After topping the S&P 500 Index with a whopping 559% total return in 2025, the stock is once again beating out around 500 of America’s largest companies this year, too — as Chartr shows here.
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Last week, Apple and Google made dueling announcements that offer a glimpse of what the next phase of consumer AI may look like — and which company might be better positioned to dominate it. Here’s how each one’s position in AI, phones, and services stack up. |
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*Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC. |
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- Tuesday: Earnings expected from Netflix, United Airlines, Interactive Brokers, 3M, US Bancorp, DR Horton, Fifth Third Bancorp, and KeyCorp
- Wednesday: Earnings expected from Johnson & Johnson, Charles Schwab, Ally, Truist, Halliburton, Kinder Morgan, and Steel Dynamics
- Thursday: Earnings expected from Intel, GE Aerospace, Procter & Gamble, Abbott Laboratories, Alaska Airlines, Huntington Bank, Freeport-McMoRan, Capital One, and CSX
- Friday: Earnings expected from Nextera Energy, First Citizens BancShares, and Comerica
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Advertiser's disclosures: Nasdaq®, Nasdaq-100 Index®, Nasdaq-100®, and Nasdaq Stock Market® are registered trademarks of Nasdaq, Inc. The information contained herein is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq, Inc. nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED. © 2026. Nasdaq, Inc. All Rights Reserved. |
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