Market Surge: Tech Stocks Lead the Charge
The US stock market experienced a significant upswing on Friday, driven by a resurgence in tech stocks and optimism surrounding the incoming Trump administration. The Dow Jones Industrial Average rose 1.1%, while the S&P 500 climbed 1.2%, and the tech-heavy Nasdaq Composite jumped 1.7%.
Earnings and Inflation Data Fuel Optimism
Investors were buoyed by a week of positive earnings reports from major banks and favorable inflation readings, which have reignited hopes for interest-rate cuts. The 10-year Treasury yield pulled back to 4.6% on Friday, further fueling the market’s upward momentum.
Housing and Industrial Production Data Exceed Expectations
Housing starts climbed 15.8% in December, surpassing economists’ expectations, while industrial production outstripped estimates. These strong data points have reinforced the picture of a robust US economy, bolstering rate optimism.
Tech Stocks Stage a Comeback
Tech giants such as Apple, Nvidia, and Tesla led the charge, with chipmakers like Micron also making gains. Coinbase, the nation’s largest crypto trading platform, rose 5% on the back of surging bitcoin prices.
Crypto Bulls Run Wild
Bitcoin’s price shot above $100,000, driven by anticipation of President-elect Trump’s crypto-friendly policies. Trump is expected to release an executive order prioritizing crypto policy and appoint business-friendly officials to oversee digital currency’s continued rollout.
Trump’s Inauguration Day Looms
As the Trump administration prepares to take office, investors are bracing for potential policy shifts. Fears surrounding tariffs, taxes, and debt have sparked concerns about inflation, while China’s economy, a key adversary for Trump, grew more than expected last year.
Asia Stocks Slip Amid Tariff Concerns
Asian stocks lost ground on Friday as investors weighed the potential impact of promised hefty tariffs. However, the overall market sentiment remains upbeat, with stocks on track for significant weekly gains.
Corporate Winners and Losers
META shares rose 0.7% following a US Supreme Court decision upholding a law that could ban TikTok in the US. Novo Nordisk, however, fell 4% after some of its medications were included in a list of Medicare price negotiations. Intel surged 8% on speculation that it may become an acquisition target.
Leave a Reply