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Tech reversal pushes US megacaps into correction territory

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Tech reversal pushes US megacaps into correction territory

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Four of the so-called Magnificent Seven technology stocks that have powered the US market rally for the past nine months ended the week in correction territory, having fallen by more than 10 per cent from recent peaks. 

Another two — Microsoft and Amazon — are close to the double-digit falls that define a correction. Investors are looking ahead to further tech earnings updates next week amid worries about punchy valuations and the risks that returns from vast artificial intelligence-related spending may not live up to early hopes.

Nvidia and Tesla are each down 17 per cent from their recent peaks while Meta and Google parent Alphabet have fallen 14 per cent and 12 per cent. Apple is the best performer in the group, having lost just 7 per cent while Microsoft and Amazon have slid about 9 per cent each.

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On Wednesday Alphabet sparked a wider market sell-off when, despite it reporting solid quarterly operating numbers, its shares fell more than 5 per cent on concerns about AI-related investments. Its $13bn quarterly capital expenditure was almost double the levels of a year ago.

“For a long time investors were really sold on the premise that AI investment in and of itself — spending money — is good,” said Max Gokhman, a senior vice-president at Franklin Templeton Investment Solutions. “What we’re seeing now is . . . investors saying, ‘Hold up a sec, what are the productivity gains here, when do you expect to see them?’”

Alphabet’s fall helped drag the tech-heavy Nasdaq Composite to its worst one-day decline in 18 months on Wednesday, down 3.6 per cent. The index ended the week down 2.1 per cent.

Microsoft, Meta, Apple and Amazon earnings next week may set up a fresh test of investor faith in the AI narrative that has been a crucial driver of market gains.

“Expectations are high and valuations for the Mag Seven aren’t cheap. We’re also closer to the point when we see some decelerations in earnings from them as a group — from the beneficiaries of AI in general,” said Josh Nelson, head of US equity at T Rowe Price. 

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Investors this week also showed they were prepared to punish companies that missed expectations, with Tesla losing 12 per cent on Wednesday after slowing sales and its own AI spending shrank profits more than expected. And Ford shares tumbled 18 per cent on Thursday when its profits fell short, hurt by unexpectedly high warranty costs.

On average, companies that missed expectations had seen their shares drop 3.3 per cent in the days surrounding their earnings, according to data from FactSet, more than the five-year average of 2.3 per cent.

Companies that beat expectations saw on average no gains in their share price, FactSet reported.

“The trend of misses getting punished more than beats get rewarded is getting a little bit more significant,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. “There is uncertainty and skittishness with regard to just how fast the market, driven by those names ran, without the commensurate improvement in their forward earnings prospects.”

Sonders also pointed to the fact that the earnings season under way had coincided with a “rotation” among investors taking profits in the biggest tech names in favour of backing smaller companies that were more likely to see big benefits if the Federal Reserve begins to cut interest rates in September.

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This week, the Russell 2000 index of small-cap stocks added 3.5 per cent while the blue-chip S&P 500 fell 0.8 per cent.

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Nationwide anti-ICE protests call for accountability after Renee Good’s death

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Nationwide anti-ICE protests call for accountability after Renee Good’s death

A large bird puppet crafted at In the Heart of the Beast Puppet and Mask Theatre in Minneapolis is carried down Lake Street during a march demanding ICE’s removal from Minnesota on Saturday, Jan. 10, 2026.

Ben Hovland/MPR News


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Ben Hovland/MPR News

People have been taking to the streets nationwide this weekend to protest the Trump administration’s immigration enforcement tactics following the death of Renee Good in Minneapolis, a 37-year-old woman who was shot and killed by a U.S. Immigration and Customs Enforcement (ICE) officer this week.

At least 1,000 events across the U.S. were planned for Saturday and Sunday, according to Indivisible, a progressive grassroots coalition of activists helping coordinate the movement it calls “ICE Out For Good Weekend of Action.”

Leah Greenberg, a co-executive director of Indivisible, said people are coming together to “grieve, honor those we’ve lost, and demand accountability from a system that has operated with impunity for far too long.”

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“Renee Nicole Good was a wife, a mother of three, and a member of her community. She, and the dozens of other sons, daughters, friends, siblings, parents, and community members who have been killed by ICE, should be alive today,” Greenberg said in a statement on Friday. “ICE’s violence is not a statistic, it has names, families, and futures attached to it, and we refuse to look away or stay silent.”

Large crowds of demonstrators carried signs and shouted “ICE out now!” as protests continued across Minneapolis on Saturday. One of those protestors, Cameron Kritikos, told NPR that he is worried that the presence of more ICE agents in the city could lead to more violence or another death.

“If more ICE officers are deployed to the streets, especially a place here where there’s very clear public opposition to the terrorizing of our neighborhoods, I’m nervous that there’s going to be more violence,” the 31-year grocery store worker said. “I’m nervous that there are going to be more clashes with law enforcement officials, and at the end of the day I think that’s not what anyone wants.”

Demonstrators in Minneapolis on Saturday, Jan. 10, 2026.

Demonstrators in Minneapolis on Saturday, Jan. 10, 2026.

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Sergio Martínez-Beltrán/NPR

The night before, hundreds of city and state police officers responded to a “noise protest” in downtown Minneapolis. An estimated 1,000 people gathered Friday night, according to Minneapolis Police Chief Brian O’Hara, and 29 people were arrested.

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People demonstrated outside of hotels where ICE agents were believed to be staying. They chanted, played drums and banged pots. O’Hara said that a group of people split from the main protest and began damaging hotel windows. One police officer was injured from a chunk of ice that was hurled at officers, he added.

Minneapolis Mayor Jacob Frey condemned the acts of violence but praised what he said was the “vast majority” of protesters who remained peaceful, during a morning news conference.

“To anyone who causes property damage or puts others in danger: you will be arrested. We are standing up to Donald Trump’s chaos not with our own brand of chaos, but with care and unity,” Frey wrote on social media.

Commenting on the protests, Department of Homeland Security (DHS) spokesperson Tricia McLaughlin told NPR in a statement, “the First Amendment protects speech and peaceful assembly — not rioting, assault and destruction,” adding, “DHS is taking measures to uphold the rule of law and protect public safety and our officers.”

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Good was fatally shot the day after DHS launched a large-scale immigration enforcement operation in Minnesota set to deploy 2,000 immigration officers to the state.

In Philadelphia, police estimated about 500 demonstrators “were cooperative and peaceful” at a march that began Saturday morning at City Hall, Philadelphia Police Department spokesperson Tanya Little told NPR in a statement. And no arrests were made.

In Portland, Ore., demonstrators rallied and lined the streets outside of a hospital on Saturday afternoon, where immigration enforcement agents bring detainees who are injured during an arrest, reported Oregon Public Broadcasting.

A man and woman were shot and injured by U.S. Border Patrol agents on Thursday in the city. DHS said the shooting happened during a targeted vehicle stop and identified the driver as Luis David Nino-Moncada, and the passenger as Yorlenys Betzabeth Zambrano-Contreras, both from Venezuela. As was the case in their assertion about Good’s fatal shooting, Homeland Security officials claimed the federal agent acted in self-defense after Nino-Moncada and Zambrano-Contreras “weaponized their vehicle.”

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Why men should really be reading more fiction

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Why men should really be reading more fiction

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A friend sent a meme to a group chat last week that, like many internet memes before it, managed to implant itself deep into my brain and capture an idea in a way that more sophisticated, expansive prose does not always manage. Somewhat ironically, the meme was about the ills of the internet. 

“People in 1999 using the internet as an escape from reality,” the text read, over an often-used image from a TV series of a face looking out of a car window. Below it was another face looking out of a different car window overlaid with the text: “People in 2026 using reality as an escape from the internet.” 

Oof. So simple, yet so spot on. With AI-generated slop — sorry, content — now having overtaken human-generated words and images online, with social media use appearing to have peaked and with “dumb phones” being touted as this year’s status symbol, it does feel as if the tide is beginning to turn towards the general de-enshittification of life. 

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And what could be a better way to resist the ever-swelling stream of mediocrity and nonsense on the internet, and to stick it to the avaricious behemoths of the “attention economy”, than to pick up a work of fiction (ideally not purchased on one of these behemoths’ platforms), with no goal other than sheer pleasure and the enrichment of our lives? But while the tide might have started to turn, we don’t seem to have quite got there yet on the reading front, if we are on our way there at all.

Two-fifths of Britons said last year that they had not read a single book in the previous 12 months, according to YouGov. And, as has been noted many times before on both sides of the Atlantic, it is men who are reading the least — just 53 per cent had read any book over the previous year, compared with 66 per cent of women — both in overall numbers and specifically when it comes to fiction.

Yet pointing this out, and lamenting the “disappearance of literary men”, has become somewhat contentious. A much-discussed Vox article last year asked: “Are men’s reading habits truly a national crisis?” suggesting that they were not and pointing out that women only read an average of seven minutes more fiction per day than men (while failing to note that this itself represents almost 60 per cent more reading time).

Meanwhile an UnHerd op-ed last year argued that “the literary man is not dead”, positing that there exists a subculture of male literature enthusiasts keeping the archetype alive and claiming that “podcasts are the new salons”. 

That’s all well and good, but the truth is that there is a gender gap between men and women when it comes to reading and engaging specifically with fiction, and it’s growing.

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According to a 2022 survey by the US National Endowment for the Arts, 27.7 per cent of men had read a short story or novel over the previous year, down from 35.1 per cent a decade earlier. Women’s fiction-reading habits declined too, but more slowly and from a higher base: 54.6 per cent to 46.9 per cent, meaning that while women out-read men by 55 per cent in 2012 when it came to fiction, they did so by almost 70 per cent in 2022.

The divide is already apparent in young adulthood, and it has widened too: data from 2025 showed girls in England took an A-Level in English literature at an almost four-times-higher rate than boys, with that gap having grown from a rate of about three times higher just eight years earlier.

So the next question is: should we care and, if so, why? Those who argue that yes, we should, tend to give a few reasons. They point out that reading fiction fosters critical thinking, empathy and improves “emotional vocabulary”. They argue that novels often contain heroic figures and strong, virtuous representations of masculinity that can inspire and motivate modern men. They cite Andrew Tate, the titan of male toxicity, who once said that “reading books is for losers who are afraid to learn from life”, and that “books are a total waste of time”, as an example of whose advice not to follow. 

I agree with all of this — wholeheartedly, I might add. But I’m not sure how many of us, women or men, are picking up books in order to become more virtuous people. Perhaps the more compelling, or at least motivating, reason for reading fiction is simply that it offers a form of pleasure and attention that the modern world is steadily eroding. In a hyper-capitalist culture optimised for skimming and distraction, the ability to sit still with a novel is both subversive and truly gratifying. The real question, then, is why so many men are not picking one up.

jemima.kelly@ft.com

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Slow-moving prisoner releases in Venezuela enter 3rd day after government announces goodwill effort

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Slow-moving prisoner releases in Venezuela enter 3rd day after government announces goodwill effort

SAN FRANCISCO DE YARE, Venezuela — As Diógenes Angulo was freed Saturday from a Venezuelan prison after a year and five months, he, his mother and his aunt trembled and struggled for words. Nearby, at least a dozen other families hoped for similar reunions.

Angulo’s release came on the third day that families had gathered outside prisons in the capital, Caracas, and other communities hoping to see loved ones walk out after Venezuela ’s government pledged to free what it described as a significant number of prisoners. Members of Venezuela’s political opposition, activists, journalists and soldiers were among the detainees that families hoped would be released.

Angulo was detained two days before the 2024 presidential election after he posted a video of an opposition demonstration in Barinas, the home state of the late President Hugo Chávez. He was 17 at the time.

“Thank God, I’m going to enjoy my family again,” he told The Associated Press, adding that others still detained “are well” and have high hopes of being released soon. His faith, he said, gave him the strength to keep going during his detention.

Minutes after he was freed, the now 19-year-old learned that former President Nicolás Maduro had been captured by U.S. forces Jan. 3 in a nighttime raid in Caracas.

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The government has not identified or offered a count of the prisoners being considered for release, leaving rights groups scouring for hints of information and families to watch the hours tick by with no word.

President Donald Trump has hailed the release and said it came at Washington’s request.

On Thursday, Venezuela ’s government pledged to free what it said would be a significant number of prisoners. But as of Saturday, fewer than 20 people had been released, according to Foro Penal, an advocacy group for prisoners based in Caracas. Eight hundred and nine remained imprisoned, the group said.

A relative of activist Rocío San Miguel, one of the first to be released and who relocated to Spain, said in a statement that her release “is not full freedom, but rather a precautionary measure substituting deprivation of liberty.”

Among the prominent members of the country’s political opposition who were detained after the 2024 presidential elections and remain in prison are former lawmaker Freddy Superlano, former governor Juan Pablo Guanipa, and Perkins Rocha, lawyer for opposition leader María Corina Machado. The son-in-law of opposition presidential candidate Edmundo González also remains imprisoned.

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One week after the U.S. military intervention in Caracas, Venezuelans aligned with the government marched in several cities across the country demanding the return of Maduro and his wife Cilia Flores. The pair were captured and transferred to the United States, where they face charges including conspiracy to commit narco-terrorism.

Hundreds demonstrated in cities including Caracas, Trujillo, Nueva Esparta and Miranda, many waving Venezuelan flags. In Caracas, crowds chanted: “Maduro, keep on going, the people are rising.”

Acting president Delcy Rodríguez, speaking at a public social-sector event in Caracas, again condemned the U.S. military action on Saturday.

“There is a government, that of President Nicolás Maduro, and I have the responsibility to take charge while his kidnapping lasts … . We will not stop condemning the criminal aggression,” she said, referring to Maduro’s ousting.

On Saturday, Trump said on social media: “I love the Venezuelan people and I am already making Venezuela prosperous and safe again.”

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After the shocking military action that overthrew Maduro, Trump stated that the United States would govern the South American country and requested access to oil resources, which he promised to use “to benefit the people” of both countries.

Venezuela and the United States announced Friday that they are evaluating the restoration of diplomatic relations, broken since 2019, and the reopening of their respective diplomatic missions. A mission from Trump’s administration arrived in the South American country on Friday, the State Department said.

Venezuelan Foreign Minister Yván Gil responded to Pope Leo XIV, who on Friday called for maintaining peace and “respecting the will of the Venezuelan people.”

“With respect for the Holy Father and his spiritual authority, Venezuela reaffirms that it is a country that builds, works, and defends its sovereignty with peace and dignity,” Gil said on his Telegram account, inviting the pontiff “to get to know this reality more closely.”

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