Markets are modestly lower in premarket trading after a softer-than-expected U.S. retail sales report raised fresh questions about the durability of consumer spending. December retail sales were flat MoM, missing expectations for a +0.4% increase and slowing sharply from November’s +0.6% gain. Core retail sales, which exclude autos, also came in flat versus forecasts for continued growth. Even stripping out both gas and autos, spending showed no momentum, underscoring a cooling consumer backdrop as the Fed weighs its interest-rate path into 2026.
Taiwan Pushes Back on U.S. Chip Onshoring Plan
Taiwan said relocating 40% of its semiconductor supply chain to the U.S. is “impossible,” pushing back on Washington’s aggressive onshoring targets. Vice Premier Cheng Li-chiun said the island’s chip ecosystem must remain rooted domestically despite overseas expansion. Taiwan Semiconductor Manufacturing (TSM) has committed over $65B to U.S. manufacturing, with plans to scale that to $165B. Analysts broadly agree such large-scale relocation is unfeasible given cost, labor, and ecosystem constraints. TSM is up over +2.0% in premarket trading after January revenue surged +36.8% YoY on strong AI demand.
Alphabet Tests the Century Mark to Fund Its AI Ambitions
Alphabet (GOOGL) is flat in premarket trading after unveiling plans to issue an ultra-rare 100-year bond as part of a massive, multi-currency debt raise, marking the first such tech issuance since Motorola’s century bond in 1997. The move underscores how soaring capital needs to fund AI are pushing even cash-rich tech giants to tap every corner of global credit markets, with strong demand expected from UK pension funds and insurers. With capex set to hit up to $185B this year and peers like Meta Platforms (META) and Microsoft (MSFT) also ramping spending, borrowing across hyperscalers is projected to surge sharply.
S&P Global Tanks After Outlook Disappoints
S&P Global (SPGI) is down over -16.0% in premarket trading after a softer 2026 earnings outlook and a modest Q4 miss rattled confidence in its growth trajectory. SPGI guided 2026 EPS to $19.40 to $19.65, below the $19.96 analyst consensus. Q4 earnings also slipped sequentially as ratings revenue cooled and expenses climbed to $2.51B. The disappointment spilled across the sector, dragging down peers including Moody’s Corporation (MCO), FactSet Research (FDS), and MSCI Inc. (MSCI), as investors questioned whether SPGI’s slowdown signals broader headwinds for financial data and analytics firms.
MrBeast Enters Fintech with Step Acquisition
MrBeast has acquired Step, marking his first major move into financial services through Beast Industries with a focus on teens and young adults. Step, which has over 7M users, offers banking, investing, and credit-building tools and will operate under the Beast Industries umbrella, leveraging Donaldson’s massive digital reach. The deal underscores a push to pair financial literacy with creator-led distribution, as MrBeast said he wants to give younger audiences the financial foundation he never had, though terms of the acquisition were not disclosed.
