A preview of upcoming events in the U.S. and global markets from Mike Dolan.
Despite lingering uncertainty, U.S. President Donald Trump swiftly shifted focus to technology this week, sparking excitement in the red-hot sector ahead of its earnings reports.
Trump announced a substantial private sector investment of up to $500 billion for artificial intelligence infrastructure. The initiative aims to position the U.S. ahead in this critical technology, with key players like OpenAI, SoftBank, and Oracle forming a joint venture named Stargate. This partnership is expected to generate over 100,000 jobs in the United States, leading to significant market reactions.
With a resurgence in the tech sector, leading companies experienced significant gains. Streaming giant shares surged 14% following strong earnings and subscriber growth. Meanwhile, Softbank and Oracle saw stock boosts in response to the positive industry outlook.
While tech stocks regained attention, the Nasdaq index slightly trailed the S&P500, with Apple facing challenges in the market. As a result, Nvidia reclaimed its position as the most valuable U.S. company.
Against this backdrop, as major industrial players took center stage on Wednesday, and with S&P500 firms projecting nearly 11% annual profit growth, stock futures indicated a positive start to the day.
The U.S. dollar weakened amid Trump’s tariff threats against the European Union and discussions on potential import duties on Chinese goods. Market volatility momentarily eased as investors adopted a cautious stance while awaiting responses from the affected countries.
Although Trump’s trade rhetoric persisted, global markets remained largely undeterred. European stocks hit record highs, with Germany’s DAX and notable companies experiencing significant gains.
In contrast, Chinese stocks retraced due to renewed trade tensions, leading to a decline in both stock values and the yuan’s exchange rate.
Despite ongoing global uncertainties, fixed income markets showed signs of stabilization, supported by factors such as subdued inflation and the absence of immediate tariff escalations.
Looking ahead, key market highlights for later in the day include earnings reports from various U.S. corporates and updates from the World Economic Forum in Davos featuring prominent financial figures.