On Week 08, major indexes closed in green while crypto market got slightly lower again.
On Monday, European stocks inched higher in thin trading, rebounding from recent record-level pullbacks on the back of a strong earnings season. The Stoxx 50 rose about 0.4% and the Stoxx 600 about 0.2%, with roughly 60% of companies beating profit forecasts, above the usual mid‑50s. Investors are eyeing upcoming results from names like Euronext, Orange, Airbus, Moncler, Repsol, and major miners, while Dassault Systèmes briefly halted after a downgrade tied to AI monetization concerns. Focus now shifts to UK labor and inflation data plus Fed minutes for policy signals, and in crypto, Bitcoin led with a modest 1% daily drop.
On Tuesday, stocks were little changed, with the S&P 500 up about 0.2%, the Dow slightly higher, and the Nasdaq 100 slightly lower as weakness in pricey tech was offset by stronger financials. Investors kept cutting high‑multiple software, with Salesforce, Intuit, and Oracle down roughly 3–5%. Chip moves diverged, as AMD slipped about 2% while Nvidia gained around 1%, showing selective AI positioning. Banks outperformed, with JPMorgan up about 2% and Citigroup nearly 3% after Fed Governor Michael Barr signaled rates may stay restrictive. Markets now look to Fed minutes and core PCE for confirmation of disinflation. In crypto, Bitcoin fell about 2%, Binance roughly 1%, while Ether was flat.
On Wednesday, stocks logged a third straight day of modest gains, with the major indices up about 0.3% as investors reassessed AI’s long‑term payoff for big tech. Nvidia climbed roughly 2% after Meta said it would use millions of its chips, while Amazon and Micron jumped on reports of larger asset‑manager positions. In contrast, AMD fell about 4% and Palo Alto Networks sank around 10% after weak guidance. Hopes for Fed rate cuts this year continued to underpin sentiment. Regional data were weaker, with the New York Fed’s activity gauge dropping to about -26, its worst reading since early 2021, pointing to contracting services but slightly better six‑month expectations. In crypto, Ripple, Ether, and Bitcoin all slipped about 1–2%.
On Thursday, stocks fell, with major indices down about 1% as Fed minutes and rising long‑term yields reinforced expectations that rates could stay higher for longer. Banks slid over 1% and big tech edged lower on concerns about costly AI‑driven data‑center spending, while Nvidia and Meta lost around 1%. Walmart rose about 2% after beating earnings and lifting its dividend, and Deere jumped roughly 7% on strong results. The trade deficit widened to roughly $70 billion in December, as exports dipped about 2% and imports climbed nearly 4%, keeping the 2025 annual gap near $900 billion. Deficits narrowed with the EU and China but grew versus Mexico, Vietnam, and Taiwan.usatoday+2. In crypto, leading tokens retreated, with Ripple down about 4%, Ether 2%, Binance Coin 2%, and Bitcoin 2%.
On Friday, stocks turned higher after the US Supreme Court struck down President Trump’s emergency tariffs, with the Nasdaq up about 1%, the S&P 500 roughly 1%, and the Dow about 0.5%. Industrial names and manufacturers gained, big tech such as Alphabet, Amazon, and Meta rose around 2%, but banks lagged as higher PCE inflation and oil pushed yields up and raised credit-cost worries. US GDP grew about 1.5% annualized in Q4 versus roughly 3% forecasts, and 10‑year yields climbed to about 4%. Pending home sales fell again in January, keeping housing under pressure despite mortgage rates near 6%. In crypto, moves were modest, with Ripple slipping about 2%.
On Week 9, Nvidia’s upcoming results and outlook will be a key test for global AI demand that has powered recent US equity gains. Major US data include producer and home prices, consumer confidence, and regional Fed leading indicators. Inflation reports are due from Germany, France, Australia, and Singapore, while fourth‑quarter GDP prints arrive from Canada, Switzerland, India, and Turkey. China’s return from Lunar New Year puts focus on PBoC rate decisions and a Bank of Korea meeting.
Comment: Supreme power knocking down Trump’s ‘emergency tariffs’
On the plus side, it’s a reminder that the system still has functioning checks and balances — one branch can’t just slide into tyranny. And, as I’ve said more than once, these tariffs were economically dumb: they mainly jack up prices for consumers, and the data showed no real boost to local manufacturing. Yes, tariffs can sometimes be a tool to avoid military confrontation, but in today’s world governments already have plenty of non‑tariff levers to pressure each other. What we really need is an economy as independent as possible from governments that are getting more erratic and aggressive. The economy is how people live, not a toy for politicians.
On Monday, stocks climbed as the Dow rose less than 1% to a new high, while the S&P 500 and Nasdaq gained about 1%, led by large-cap tech and AI shares. Nvidia, Broadcom, and Oracle all advanced on renewed AI optimism ahead of key US jobs and inflation data. In currency markets, the offshore yuan strengthened to about 6.9 per dollar — its highest in nearly three years — after Chinese regulators urged banks to trim exposure to US Treasuries, signaling a gradual shift toward stronger domestic assets. In Australia, private house approvals grew less than 1%, marking steady but cooling housing demand. In crypto, Ether jumped 1%, Ripple rose 1%, and Bitcoin edged up less than 1%.
On Tuesday, Markets were mixed as the Dow hit a new high, while the S&P 500 and Nasdaq slipped, with weak December retail sales (flat vs roughly 0.4% expected) weighing on sentiment and pressuring retail and financial stocks. AI‑related capital spending and new AI advisory tools unsettled some financial names, though tech traded unevenly and Spotify jumped about 15% on strong results. Gold climbed above about $5,100 per ounce, near a two‑week high, as softer US data boosted expectations for roughly three Federal Reserve rate cuts this year, with central bank buying and geopolitical tensions adding support. In crypto, major tokens dropped, with Ether, Binance Coin, Ripple, and Bitcoin all down around 2–4%.
On Wednesday, stocks rose on a volatile, with the S&P 500 and Nasdaq up around 0.3% and the Dow setting a record above 50,200. Strong non-farm payrolls, up about 130,000, and a lower unemployment rate highlighted a solid labor market and undercut expectations of imminent Fed easing. AI infrastructure names like Micron, Texas Instruments, and Lam Research climbed over 5%, while software firms such as Salesforce, ServiceNow, Intuit, Oracle, and Palantir slid, reflecting fears of AI-driven disruption. T‑Mobile fell roughly 5% on weak user growth and Humana dipped about 1%. The US ran a January budget deficit near $95 billion, smaller than last year. Crypto lagged, with Ether down about 3%, Bitcoin 2%, and Ripple 2%.
On Thursday, stocks fell as tech weakness erased early gains — the S&P 500 slipped 2%, the Dow 1%, and the Nasdaq 100 nearly 2%. AI-linked sectors faced renewed doubts about the profitability of massive compute spending and automation risks. Apple sank 5% in its worst drop since spring, while Amazon, Meta, Broadcom, and Palantir fell around 2%–5%. Cisco plunged over 12% on weak guidance, though defensives like Walmart (+4%) and McDonald’s (+3%) gained after earnings, and Micron rose on HBM4 chip progress. A strong jobs report kept rate-cut hopes low ahead of Friday’s CPI data. Fed Governor Stephen Miran cautioned that policy may be overly tight and advocated rate cuts to sustain growth. Bitcoin dipped less than 1%, tracking modest crypto market moves.
On Friday, stocks were flat with the S&P 500 and Dow barely moving and the Nasdaq up about 0.2%, leaving major indexes roughly 2% lower for the week as softer January inflation failed to boost risk appetite amid AI volatility. Inflation cooled as expected, keeping markets positioned for multiple Federal Reserve rate cuts this year. Big tech and chip names like Nvidia, Apple, Alphabet, Meta, and Broadcom fell around 1–2%, while software firms Salesforce and Oracle gained more than 2%, and Applied Materials and Arista Networks jumped roughly 8% and 5% after strong earnings. In crypto, Ether rose about 5%, Bitcoin 4%, and Ripple roughly 3%, leading digital‑asset gains.
On Week 8, mid‑February data will shape views on the global economy amid trade, monetary, and fiscal uncertainty. The Federal Reserve will release minutes from its latest pause, while the US reports fourth‑quarter GDP plus new income and spending figures. Canada updates inflation, and European PMIs will signal momentum in key economies. With China’s New Year holidays, attention turns to Japan’s fourth‑quarter GDP and inflation, and Australia’s central bank minutes. Earnings from Walmart, Airbus, Newmont, BHP, Palo Alto Networks, Booking, Analog Devices, Warner Bros, and Air Liquide will also guide markets.
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