Despite a recent decline in software and SaaS stock performance, AI investments are not being abandoned. The market is adjusting its valuation approach, but the AI trade remains intact, dismissing notions of a deteriorating trend.<\/p>\n
Solana’s (SOL) value dropped to under $100, experiencing a 6% decline amidst a downward trend in the broader cryptocurrency market. Despite this, on-chain data reported a milestone of 150 million daily transactions, reflecting some ongoing activity in the network.<\/p>\n
We recall seeing signs of a European slowdown in early 2025, when the German services PMI missed its forecast. That trend ultimately led the European Central Bank to begin cutting rates in the third quarter of that year. With the latest Eurozone inflation data for January 2026 coming in at a subdued 1.9%, traders should watch for opportunities to buy call options on the DAX index, anticipating continued supportive monetary policy.<\/p>\n
The meager US job growth witnessed in early 2025 was a clear signal that the economy was cooling faster than expected. This eventually culminated in a brief, mild recession in late 2025, prompting aggressive rate cuts from the Federal Reserve. Now, as the most recent Non-Farm Payrolls report for January 2026 showed a stronger-than-expected rebound of 210,000 jobs, we should consider using VIX futures to hedge against rising uncertainty over the Fed’s next move.<\/p>\n
The re-pricing of AI stocks we saw throughout 2025 was a necessary correction that separated hype from real earnings. Since then, companies focused on AI infrastructure and chips have vastly outperformed those just applying AI to software, with the semiconductor index (SOX) gaining 22% over the last 12 months. A pair trade, going long on a leading chipmaker while buying put options on a software ETF, remains a viable strategy to capture this performance gap.<\/p>\n
Looking back, Solana’s dip below $100 in early 2025 was a key moment, as the record on-chain activity was a leading indicator of genuine adoption. That high utility eventually fueled a price recovery that outperformed most of the market later that year. With SOL now trading near $180, its 30-day realized volatility has fallen to 65%, making it more attractive to sell out-of-the-money puts to collect premium from traders still expecting wild price swings.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Germany\u2019s services sector underperforms, U.S. job growth expected, AI investments persist, Solana dips amid activity.<\/p>\n","protected":false},"author":62,"featured_media":16992,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40912","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40912","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=40912"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40912\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16992"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=40912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=40912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=40912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}