WS #359

The dominant signal from this data window is a significant downward revision to US Q4 GDP growth from 1.4% to 0.7%, coupled with a tick higher in the Fed's favorite inflation gauge. This combination of slowing growth and persistent inflation pressures could reinforce stagflation concerns, potentially weighing on broader market sentiment and influencing Federal Reserve policy expectations. The sharp deceleration from Q3's 4.4% pace suggests weakening economic momentum that may affect risk assets. Several corporate developments show mixed signals across sectors. SentinelOne shares are trading lower after mixed Q4 results and weak Q1 EPS guidance, indicating potential headwinds in cybersecurity. Conversely, Nio shares are surging after achieving its first-ever quarterly profit and receiving positive Wall Street sentiment, providing a bullish signal for Chinese EV makers. InMode shares rose after authorizing a buyback covering nearly 10% of outstanding shares, while Klarna Group shares traded higher after its board chair acquired $50 million worth of shares. Geopolitical developments continue with Israeli-backed Palestinian militias stepping up operations against Hamas in Gaza, though this appears to be a continuation of existing regional tensions rather than a new escalation. Defense sector news includes Kratos collaborating with Airbus on advanced uncrewed combat aircraft and ParaZero Technologies securing a new purchase order from an Israeli defense entity, which could benefit defense contractors amid ongoing conflicts.