US Stocks End Positive Week amid Trump's China Tariff Hints
US stocks witnessed a mixed performance on Friday, as investors weighed earnings reports and President Trump's softening stance on China tariffs. Despite a slight dip in the Dow Jones Industrial Average (^DJI) of 0.1%, the broader S&P 500 (^GSPC) inched above its flat line, having reached its first record high of 2025 on Thursday. The tech-heavy Nasdaq Composite (^IXIC) gained 0.2%.
Trump's Policy Influence
President Trump's recent call for lower interest rates, oil prices, and taxes boosted investor optimism. The major market indices are poised to end the week with gains exceeding 2%, demonstrating Trump's impact on the market despite skepticism about his ability to implement his proposals.
Softening China Stance
Trump's comments on Thursday indicating a willingness to avoid tariffs on China eased concerns over a potential trade war. Chinese stocks (000300.SS) responded positively to his remarks.
Earnings Season
Earnings season continues to provide a boost to sentiment, with strong reports from Verizon (VZ) and American Express (AXP). Big Tech companies are expected to release their results next week, marking a crucial test.
Oil and Gold
Oil prices (CL=F, BZ=F) rose on Friday but remained on track for a weekly decline due to market volatility influenced by Trump's comments. Gold (GC=F) approached record highs as the dollar (DX-Y.NYB) weakened, making the precious metal more affordable.
Economic Data
Preliminary readings on US manufacturing and services activity for January will provide insights into the economy's performance ahead of the Federal Reserve's policy meeting next week.