US stocks saw an uplift on Friday following Apple’s robust earnings report and the Federal Reserve’s inflation index aligning with market expectations. Investors remained on edge due to an impending tariff deadline set by former President Donald Trump. Read more.
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The tech-focused Nasdaq Composite (^IXIC) advanced 0.9%, buoyed by strong performances in the tech sector. The S&P 500 (^GSPC) increased by approximately 0.5%, while the Dow Jones Industrial Average (^DJI) rose 0.3%, both continuing the upward trend from Thursday’s movements. According to data from the IndexBox platform, these gains reflect a positive investor sentiment despite the ongoing volatility in the market.
Apple shares surged at market open after announcing a first-quarter profit that exceeded estimates. Despite a downturn in iPhone and China sales, the market responded optimistically to a promising revenue forecast. Nevertheless, the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) are poised for modest weekly losses, primarily due to disruptions caused by DeepSeek in the tech industry, while the Dow (^DJI) anticipates a weekly gain amidst a solid start to the earnings season.
The month of January, characterized by the volatility of Trump’s early presidency, concluded with potential monthly gains across major indexes, with the Dow eyeing an increase of over 5%. Trump’s reiterated threat to implement a 25% tariff on Canada and Mexico by February 1 has rekindled concerns over economic ramifications concerning US major trade allies.
Furthermore, Trump cautioned BRICS nations against adopting a new joint currency to replace the dollar, threatening 100% tariffs in retaliation. The dollar (DX-Y.NYB) appreciated, marking its strongest week since November. Meanwhile, the lack of definitive tariff plans has led Federal Reserve Chair Jerome Powell to adopt a cautious approach, as tariffs could potentially exacerbate inflation.
This uncertainty centers attention on the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures index. The core PCE, excluding food and energy, rose by 2.8% on an annual basis in December, meeting economic forecasts. Wall Street speculators, as indicated by the CME FedWatch tool, remain skeptical about an interest rate cut occurring before June.
Source: IndexBox Market Intelligence Platform