Weekly Market Outlook 2/1/26
The moves we saw this week were nothing short of historic.
Silver crashed by 30% for it’s worst day since 1980 as Trump made his next Chairman of the Federal Reserve nomination in Kevin Warsh, a perceived hawk who removed any questions about Federal Reserve independence.
And that’s just the tip of the iceberg.
Musk Industries seems like it’s inching closer to reality as rumors swirl that SpaceX is considering a merger with either Tesla or xAI later this year. We also had the first consumer Agentic AI moment with Clawdbot, Apple made their first AI acquisition, Google released what’s perceived to be the end of gaming studios with Genie, OpenAI is inches away from closing a $100B funding round, and much more.
The world of AI is getting crazier by the day to say the least.
Not only that but the destruction in software continued. Microsoft reported solid earnings with 39% Azure growth and still had its worst day in nearly six years as fears around OpenAI concentration bubbled up after it was revealed that roughly 45% of Microsoft’s backlog is tied to OpenAI. ServiceNow posted stellar earnings as well and still got sold off as the market continues to question which software names will actually matter in the coming years. Even the highest quality software companies are getting thrown to the wolves.
One thing to realize is when an entire sector or group of stocks is being sold off like this, questioning why your favorite stock is being sold off is a fools errand. When the selling across a group is relentless as it’s been in software, they sell everything and ask questions later. Even the highest quality names. It’s likely nothing against your specific holding but during a sector wild armageddon like we’re seeing with software, every company is guilty until proven innocent.
Did I mention we’re just one month into 2026?
I want to highlight and mention that my 2026 Market Outlook was published last weekend, I’ll link it here. In this article I discuss how I’m thinking about the market and indices heading into the new year, my top individual stock and trade ideas for 2026, the themes I’m focused on and the specific names within them including thematic baskets you can own or trade, macro and micro analysis, key index levels, crypto, sector and industry breakdowns, international stocks, and more. It’s a big piece, but I think it’s well worth the read. I put my all into this outlook to help you prepare for the upcoming year, and I hope you find it useful.
In the remainder of this article I’m going to break down a few hidden beneficiaries of OpenAI’s upcoming funding round, a former “meme stock” quietly undergoing a real turnaround with serious backing, a hidden blue chip that may be setting up one of the best opportunities of 2026, a gaming stock getting aggressively sold off ahead of a major catalyst later this year, my favorite monthly charts, crypto, Kevin Warsh and what his appointment means for the market + which stocks benefit, my take on the broader market, and more.
Let’s discuss.