1. Gold and silver at record high as Trump-Powell clash shakes investors.

"With the Fed's independence now openly contested, the 'political risk' is driving investors toward hard assets," said Zain Vawda, analyst at MarketPulse by OANDA. Should the Fed be politicized and lose its independence, fears are that we could run the economy very hot and end up in a hyperinflationary environment.

Citigroup just upgraded its targets for Gold at $5,000 and Silver at $100.

2. Rotate but no retreat.

Cash levels are sending a sell signal at the same time as the general mood is pretty much bullish.

While that makes the market prone to setbacks, something would really need to break to trigger a proper drawdown. “Cash holdings have fallen close to pre-pandemic low levels,” say HSBC strategists led by Amit Shrivastava, who see early signs that buy-side optimism is peaking. “Although there remains some room for further decline in cash allocation from current levels, the scope to maintain the pace of cash unwinding observed in 2025 is limited, in our view.”

For the moment, though, the outlook remains positive. The US economy is expected to accelerate, fiscal and monetary policies are easing, while Friday’s payrolls report sustained the idea of a “Goldilocks” setup. The narrative around the Fed and Trump puts is so strong that any dips are likely to be bought.

“Rotate but no retreat,” is the correct strategy for the first quarter, according to Bank of America strategists led by Michael Hartnett.

3. Trump says that tech giants must bear the cost of data center electricity.

Meta’s latest deal sparks nuclear energy rally.

Meta announced major nuclear energy deals with Oklo, TerraPower, and Vistra, which will provide up to 6.6 GW of carbon-free power for Meta’s AI data centers.

It provides the tech giant with diversified power sources and additional future scale. It also reiterated that energy is the problem every tech company is trying to solve right now.

Below: Prices are rising as nuclear utilities are buying uranium and supply is constrained.

4. European defense stocks higher on NATO Greenland talks.

A group of European countries, led by Germany and the UK, is discussing plans for military presence in Greenland to tamp down US threats to take over the self-ruling Danish territory and show that the continent is serious about Arctic security. Germany will propose setting up a joint NATO mission to protect the Arctic region. UK Prime Minister Keir Starmer has urged allies to step up their security presence in the High North.

UBS raised the price target for Thalès to €380, an upside of 40%. Thales SA is a France-based tech/defense company. The Company provides a range of solutions divided into three segments: Aerospace systems, Defense and security systems, Digital identification and security solutions.

5. Rio Tinto/Glencore in focus.

Shares in Glencore , which would probably be acquired if a deal goes though, have jumped by more than 6%. Rio Tinto , the likely buyer, was down 2.6%.

Why would Rio Tinto like to buy Glencore? Rio Tinto is seeking to drive medium to long term earnings growth through expanded exposure to copper and lithium, commodities expected to face structural supply deficits amid rising demand. While Rio is currently on track to deliver the promised copper production growth and benefit from great options on the long-term, Glencore’s copper projects would add exposure to large-scale, low-risk growth for a medium-term production boost.

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