1. U.S. Defense Department Cuts Budget, Palantir Shares Plunge；
2. Morgan Stanley Bullish on Chinese Stocks；
3. DOGE Considers Paying Dividends；
4. U.S. Jobless Claims Tick Up Slightly；
5. Lenovo’s Profit Doubles, Surpassing Expectations；
6. Apple Launches Powerful Budget iPhone；
7. Trump Attempts to Cancel NYC Congestion Fee
1. U.S. Defense Department Cuts Budget, Palantir Shares Plunge
A recent report revealed that U.S. Secretary of Defense, Lloyd Austin, plans to cut military spending. As a result, Palantir Technologies’ stock dropped by 10%, with a further 5% decline in after-hours trading.
Palantir’s stock has risen nearly 50% year-to-date. The company is a major U.S. defense contractor, selling AI products and technologies to governments and private enterprises.
Bloomberg analysts noted that the company’s government business revenue surged 40% over the past two quarters, accounting for more than half of its total revenue. If the government cuts its budget, it could significantly impact Palantir’s financial results.
On Wednesday, the Secretary of Defense informed senior military officials that an 8% budget cut will be implemented annually over the next five years.
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2. Morgan Stanley Bullish on Chinese Stocks
Morgan Stanley’s strategist, Laura Wang, and her team have recently reversed their bearish stance on Chinese stocks.
Several other Wall Street banks are also turning bullish on the Chinese market, believing that AI technology advancements brought by DeepSeek can drive the growth of local businesses.
Strategists wrote that China’s stock market has finally undergone structural changes, and the current MSCI Index performance is more sustainable than last September’s rally.
Morgan Stanley predicts that the MSCI China Index will reach 77 by the end of 2025, up from their previous forecast of 63.
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3. DOGE Considers Paying Dividends
At an investment summit in Miami this Wednesday, Donald Trump mentioned that he is considering sharing 20% of the savings made by DOGE with U.S. taxpayers, with part of it also used to reduce the national deficit.
This idea was originally proposed by Elon Musk. Musk suggested on X (formerly Twitter) that Trump could introduce “DOGE Dividends” and refund $5,000 to American families.
Critics argue that DOGE’s sudden layoffs and cancellations of projects could cripple essential government functions and fail to provide long-term tax savings for taxpayers.
Recent layoffs and cuts by DOGE have faced significant opposition.
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4. U.S. Jobless Claims Tick Up Slightly
The U.S. Department of Labor reported that for the week ending February 15, initial jobless claims increased by 5,000 to 219,000, nearly unchanged from the previous week, indicating a healthy demand in the job market.
The number of continuing claims rose to 1.87 million, showing that finding new jobs is still challenging.
Economists are closely monitoring employment data to assess the impact of Trump’s policies.
Large companies such as Meta and Southwest Airlines have recently announced layoffs.
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5. Lenovo’s Profit Doubles, Surpassing Expectations
Lenovo Group’s latest earnings report shows that for the quarter ending December, net profit more than doubled to $692 million, significantly surpassing analysts’ expectations of $365 million. Revenue rose by 20% to $18.8 billion, also exceeding forecasts.
With the rise of domestic AI technologies like DeepSeek, along with government subsidies for electronics, investors expect that more consumers will purchase AI-enabled computers in 2025, benefiting companies like HP and Dell.
However, U.S. tariffs and macroeconomic challenges continue to pose risks to the industry.
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6. Apple Launches Powerful Budget iPhone
Apple unveiled the new budget iPhone 16e this week, priced starting at $599, which is $170 more expensive than the previous generation. Pre-orders will begin on February 21, with official sales starting on February 28.
The iPhone 16e removes the outdated Home button, features a 6.1-inch screen and Face ID, and includes the same A18 chip and USB-C charging port as the iPhone 16.
For the first time, Apple has used its in-house cellular modem chip in the iPhone 16e, replacing the parts that were previously supplied by Qualcomm.
Sales of the iPhone 16, launched during the holiday season, were disappointing, leading to a 1% decline in quarterly revenue.
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7. Trump Attempts to Cancel NYC Congestion Fee
On Wednesday, U.S. Transportation Secretary Sean Dafoe announced that the Federal Highway Administration (FHWA) plans to withdraw approval for the congestion pricing policy in New York City’s Manhattan, which had just gone into effect last month.
Dafoe argued that the policy was an affront to working-class Americans and small business owners, stating that every American, regardless of economic status, should have the right to access New York City.
However, the MTA immediately filed a lawsuit in federal court, claiming that Trump’s government lacks the legal authority to cancel an agreement that had already been reached. The congestion fee will remain in effect until the federal government makes a decision.
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This report contains information sourced from Financial Times, Bloomberg, The Real Deal, and other financial news media.