The Trump administration is reportedly considering agricultural exemptions from tariffs on Mexico and Canada. Despite the United States' agriculture trade deficit likely hitting a record $49 billion this year, a reprieve would help ease worries regarding raw commodity prices.

Alibaba (BABA 8.61%) stock surged over 8% thanks to the release of a new reasoning AI model reportedly at the same level as DeepSeek's R1. This comes at a time when AI development out of China is growing at a rapid pace.

• "Investors now also recognize the value that AI will bring to their Cloud computing business." The latest model (QwQ-32B) requires minimal data and consumes less computational resources than before. This makes it a good fit for use by cloud clients, with shareholders seeing the potential value, according to Vey-Sern Ling, managing director at Union Bancaire Privee.
• MSCI China Tech 100 index back to early 2022 highs: The release coincides with public government support for the development of large-scale AI models in China and competitors such as Manus AI launching a general AI agent.

Broadcom (AVGO 2.19%) will release its fiscal first-quarter earnings after the closing bell. AI-driven demand pushed semiconductor solutions revenue 12% higher last quarter, with investors keen to see whether momentum in this area is continuing.

• Up 236% over the past five years: Costco (COST 1.05%) will report after hours, with shareholders keeping a close eye on the retention rate after the membership fee increase came in. Financial metrics will help to put a finger on the pulse of the American consumer's health.
• Beijing helping to support consumption: JD.com (JD 6.86%) exceeded revenue expectations in the fourth quarter, reporting a 13.4% year-over-year increase. CEO Sandy Xu cited the double-digit growth in active users and shopping frequency as a reason for optimism, "reflecting our growing mindshare among consumers."