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Index Update

US stocks wrapped up the week with muted movements on Friday, holding onto gains as markets digested the latest earnings reports and policy signals from US President Trump! The S&P 500 remained flat, hovering near record highs, while the Nasdaq edged higher and the Dow dipped less than 50 points, with the three averages still posting a 2% gain for the week. President Trump's indication that his administration would rather not impose tariffs on China mitigated inflation risks, while American Express and Verizon reported strong earnings, with the latter jumping 3% on soaring 5G investments! Markets now await S&P PMI values for the first national-level indicators for January.

Commodities Update

Gold prices plummeted below $2,760/oz as investors await the US Federal Reserve's policy decision! The Fed is expected to hold rates steady, but Trump's call for rate cuts and tariff threats on Colombia have investors on edge. Silver prices also fell 1% to $30.20/oz as the dollar rebounded and trade tensions escalated.

Macro Update

The yield on the 10-year US Treasury note dipped below 4.6% on Monday, marking its second consecutive decline, as traders prepared for the Federal Reserve's upcoming monetary policy decision this week. The Fed is widely expected to keep interest rates steady but faces pressure from President Donald Trump to lower borrowing costs. Investors are also eyeing the upcoming PCE price index report for clues on future policy direction, while Trump's threat to impose tariffs and sanctions on Colombia has added fresh concerns to global trade.

Crypto Update

Bitcoin's value plummeted 4% to below $100,000 on Monday, wiping out gains from the previous week, as investors took profits amid uncertainty surrounding US President Donald Trump's cryptocurrency policy plans, which include forming a working group to advise on crypto regulation, but fell short of establishing a US Bitcoin reserve.

Futures Update

Global stocks took a hit as mounting concerns over the US's dominance in the AI space weighed heavily on market sentiment, sparking a wave of sell-offs across the tech sector! The spotlight shifted to Chinese startup DeepSeek's latest AI model, which has been garnering attention for its cost-efficiency and ability to run on less-advanced chips, posing a potential challenge to US tech giants. The numbers tell the story: the STOXX 50 slid over 1%, while Nasdaq 100 futures in the US plummeted a staggering 3%! As investors reassess the global tech landscape, one thing is clear: the AI race is heating up!

On Friday, stocks posted a decline after initially underperforming, with the major indexes closing lower. Despite reaching a new record intraday high, the S&P 500 retreated, though it managed to pull back from its worst levels before the close. At the end of the trading day, the Dow Jones Industrial Average had dropped by 148.82 points, or approximately 0.3 percent, to $44,424.25. In contrast, the Nasdaq Composite fell by 99.38 points or around 0.5 percent, closing at $19,954.30, while the S&P 500 dipped by 17.37 points or 0.29 percent, finishing the day at $6,101.25. Looking at the technical outlook, the S&P 500 remains within an upward trend channel, suggesting potential for continued growth. The 14-period Relative Strength Index (RSI) is also within a favorable range, indicating a positive trend. Key levels to monitor include resistance at $6,200 and support at $5,955.

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