Weekly roundup

Here’s what made waves this week:

• 📝 Tax season kicks off, and the IRS has some advice. The agency is urging taxpayers to file early, opt for direct deposit, and double-check deductions to avoid delays or audits. With refund amounts expected to be lower than last year, filers might need to brace for a little less cash back.

• 📉 The Fed holds rates steady as inflation clouds the outlook. The central bank kept rates unchanged, signaling caution as economic uncertainty lingers. With inflation still above target and the job market showing resilience, the Fed isn’t rushing into rate cuts just yet.

• 🤖 OpenAI calls out DeepSeek for allegedly copying its tech. The AI race is getting messy, with OpenAI accusing DeepSeek of profiting off its research. As competition heats up, the battle over who owns AI’s intelligence could reshape the entire industry.

Featured story

UPS Dumps Amazon, but Wall Street Isn’t Buying It

UPS just made a bold move, cutting back service with Amazon—the customer that made up 12% of its revenue. The reason? Profitability. CEO Carol Tomé says Amazon may be the biggest client, but it’s far from the most lucrative. By slashing Amazon shipments by more than 50% by 2026, UPS is doubling down on higher-margin business, like healthcare and small-to-medium-sized shippers.

But Wall Street isn’t convinced. The stock cratered 14% after the announcement, marking one of its worst trading days ever.

Behind the scenes, Amazon’s growing logistics empire looms large. The company has been rapidly expanding its in-house delivery network, sinking billions into its own fleet, cargo hubs, and EVs from Rivian. It even started moving third-party shipments, putting it in direct competition with UPS and FedEx. In 2025, UPS expects its U.S. daily volume to drop 8.5%, while Amazon Air keeps adding flights and aircraft. With the e-commerce giant squeezing suppliers and cutting costs, the real question is: Can legacy shippers survive in a world where Amazon delivers everything?

What to watch this weekend

Indices at 12:00 AM (ET)

Here’s what’s moving the markets.

• ⚠️ Trump tariffs set to hit Canada and Mexico. Starting February 1, the U.S. will impose 25% tariffs on imports from its two largest trading partners, with possible levies on oil still under consideration. The move is aimed at curbing illegal immigration and trade deficits, but retaliatory measures from Canada and Mexico could spark a fresh trade war—one that might hit American consumers at the gas pump.

• 🏬 Target’s DEI rollback sparks boycott debate. Target is phasing out its diversity, equity, and inclusion initiatives, prompting civil rights activists to call for a national boycott. But some Black entrepreneurs argue that abandoning the retailer could hurt minority-owned brands, igniting a fierce debate over how best to push for corporate accountability.

• 💾 Nvidia options surge as investors buy the dip. After a recent slide, Nvidia’s stock rebounded as traders snapped up call options, betting on a comeback. The AI chip giant remains one of the hottest stocks in tech, but with sky-high valuations and increasing competition, the market is questioning how long the rally can last.

Off-balance sheet items

Here’s what we’re reading this week:

• Skift: Royal Caribbean to launch river cruises under Celebrity brand in 2027.

• TechCrunch: Majority of U.S. teens have lost trust in Big Tech, survey finds.

• Business Insider: Christopher Walken avoids modern tech—no phone, email, or even satellite TV.

Chart of the week

The bottom line

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