Market Optimism Returns as Tech Stocks Rebound
The US stock market is poised for a strong finish to the week, with futures on the Dow Jones Industrial Average and S&P 500 both rising 0.7% on Friday. The tech-heavy Nasdaq 100 saw an even more impressive gain, surging over 1% as investors regained confidence in the sector.
Tech Giants Lead the Charge
Nvidia and Tesla shares led the way, rebounding into positive territory after a tumultuous week. Apple stock also saw a slight increase in pre-market trading, recovering from its worst loss since August. Chipmakers like Micron joined Nvidia in making gains, while Coinbase and other crypto-linked names benefited from bitcoin’s continued advance above $100,000.
Economic Data and Earnings in Focus
Investors are digesting a week of key data and earnings reports, including big bank earnings and inflation readings. The 10-year Treasury yield pulled back below 4.6% on Friday, fueling hopes of interest-rate cuts. Today’s economic docket features updates on industrial production, housing starts, and building permits.
Earnings Season Heats Up
Citizens Financial Group, State Street, Truist, and Webster Bank are among the companies set to report earnings today. Investors will be watching closely for signs of strength in the banking sector.
Global Markets React to Trump’s Policy Plans
As Donald Trump prepares to take office on Monday, investors are bracing for potential policy upheaval. Fears are growing that his plans for tariffs, taxes, and debt could stoke inflation. In Asia, stocks fell on Friday as investors weighed the potential impact of promised tariffs on China’s economy.
China’s Economy Beats Expectations
Despite the uncertainty, China’s economy grew more than expected last year, topping Beijing’s 5% target after a stimulus blitz. However, the country’s stocks remain under threat as investors await the impact of Trump’s policies.
What’s Ahead
Monday’s inauguration day will see markets closed for the Martin Luther King Jr. holiday. When trading resumes, investors will be watching closely for signs of how Trump’s policies will shape the market landscape.
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