Market Sentiment Shifts as Investors Weigh Trump’s Comments
Earnings Season Off to a Strong Start
US stock futures struggled to maintain momentum on Friday, as investors digested the latest batch of earnings reports and reacted to President Trump’s comments on China tariffs and interest rates. The Dow Jones Industrial Average futures fell almost 0.3%, while S&P 500 futures hovered around the flat line, following a record high on Thursday.
Trump’s Softening Stance on China Tariffs Boosts Investor Optimism
President Trump’s remarks at Davos, calling for cuts to US interest rates, oil prices, and taxes, sparked investor optimism, driving stocks higher. The major indices are on track to end the holiday-shortened week with gains above 2%, demonstrating the significant impact of Trump’s comments.
Earnings Season Heats Up
A strong start to earnings season has also lifted spirits, with Verizon and American Express set to report results on Friday. However, the real test lies ahead, as Big Tech’s biggest players prepare to release their results next week.
Boeing Shares Slip on Expected Quarterly Loss
Meanwhile, Boeing shares fell after the company announced it expects to book a $3.5 billion quarterly loss due to strikes and layoffs.
Oil Prices Gain, but Still on Track for Weekly Loss
Oil prices rose on Thursday, but are still poised for a weekly loss, as markets respond to Trump’s demands that OPEC reduce the cost of crude.
Gold Nears Record High as Dollar Pulls Back
Gold closed in on a record high as the dollar retreated, making the metal cheaper.
Economic Data in Focus
Preliminary readings on US manufacturing and services activity in January will provide insight into the economy’s performance ahead of the Federal Reserve’s policy meeting next week.
Key Earnings and Economic Data Releases
- American Express (AXP), First Citizens BancShares (FCNCA), NextEra Energy (NEE), Verizon (VZ)
- S&P Global US manufacturing PMI (January preliminary)
- S&P Global Services PMI (January preliminary)
- S&P Global US composite PMI (January)
- University of Michigan consumer sentiment (January final)
- Existing home sales (December)
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