'Fast Money' traders react to Pres. Trump's comments out of Davos

Watch on YouTube ↗  |  January 21, 2026 at 22:34  |  5:06  |  CNBC
Speakers
Guy Adami — Trader
Dan Nathan — Panelist, Fast Money
Karen Finerman — CEO, Metropolitan Capital Advisors; Fast Money trader

Summary

The Fast Money panel reacts to President Trump's Davos comments and a reported framework deal, with markets rallying on the avoidance of force and tariffs. The discussion covers gold's resilience, weakness in prior mega-cap tech leadership, a long-term S&P uptrend break, potential upside for Mag 7 earnings, small-cap IWM outperformance and valuation, and the negative impact of a proposed credit card interest rate cap on banks versus Visa/Mastercard.

  • Markets rallied on Trump's Davos comments, especially signals of no force and no tariffs.
  • Gold did not sell off much despite the positive headline, suggesting investor skepticism.
  • Mega-cap tech leadership remains weak, with many former leaders well off recent highs.
  • The S&P 500 broke a long-term uptrend, a technical warning to monitor.
  • Mag 7 earnings may have a lower bar for upside surprises.
  • IWM is outperforming and trades at a cheaper valuation than the S&P.
  • A proposed credit card rate cap is negative for banks but less so for Visa and Mastercard.
Ideas
Guy Adami Trader 0:51
Gold resilient despite positive headline.
Gold did not soften as much as expected despite the positive Davos framework-deal headline; it initially sold off but came back, suggesting investors doubt the details and gold remains supported.
GLD MED
Dan Nathan Panelist, Fast Money 1:30
Mega-cap tech leadership is breaking down.
Prior market leadership, especially mega-cap tech, is weakening; most mega-cap tech names other than Google are down at least 10% from recent highs, with Microsoft down 20%, Meta similarly weak, and Palantir down 20%. This deterioration in former leaders warrants close attention.
Mega-Cap Tech MED
Dan Nathan Panelist, Fast Money 2:03
S&P 500 breaks long-term uptrend.
A note from Carter Braxton Worth shows the long-term S&P 500 chart broke below a long-term uptrend for the first time in a very long time; this technical breakdown is worth keeping a close eye on.
SPY MED
Karen Finerman CEO, Metropolitan Capital Advisors; Fast Money trader 2:35
Mag 7 earnings bar is low.
The setup going into Mag 7 earnings is the flip side of banks: banks rallied huge, while Mag 7 names like Microsoft have traded awfully and are down sharply, lowering the bar for upside earnings surprises.
MAGS MED
Karen Finerman CEO, Metropolitan Capital Advisors; Fast Money trader 2:54
IWM relative strength signals broadening.
IWM reached a new all-time high and is showing its strongest relative performance versus the S&P 500 in a very long time, indicating broadening participation in the market.
IWM MED
Karen Finerman CEO, Metropolitan Capital Advisors; Fast Money trader 3:44
Credit card cap hurts banks most.
Trump's proposed credit card interest rate cap is negative for banks because they take credit risk and make the loans; Visa and Mastercard have less fundamental impact because they do not make loans, though they still face peripheral pressure from reduced transaction flow through banks.
KBE MED
Karen Finerman CEO, Metropolitan Capital Advisors; Fast Money trader 3:44
Credit card cap hurts banks most.
Trump's proposed credit card interest rate cap is negative for banks because they take credit risk and make the loans; Visa and Mastercard have less fundamental impact because they do not make loans, though they still face peripheral pressure from reduced transaction flow through banks.
V MA MED
Guy Adami Trader 4:24
IWM cheaper than S&P 500.
IWM trades at 16 times earnings while the S&P trades at 23 times, and the S&P excluding Mag 7 trades at the same multiple as the Russell; investors looking for cheaper valuation during earnings season may favor small caps.
IWM MED
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This CNBC video, published January 21, 2026, features Guy Adami, Dan Nathan, Karen Finerman discussing GLD, Mega-Cap Tech, SPY, MAGS, IWM, KBE, V, MA. 8 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Guy Adami, Dan Nathan, Karen Finerman  · Tickers: GLD, Mega-Cap Tech, SPY, MAGS, IWM, KBE, V, MA