| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 43,840.91 | 601.41 | 1.39% |
| S&P 500 | 5,954.50 | 92.93 | 1.59% |
| Nasdaq | 18,847.28 | 302.86 | 1.63% |
| VIX | 19.63 | -1.5 | -7.10% |
| Gold | 2,881.30 | 32.8 | 1.15% |
| Oil | 70.2 | 0.44 | 0.63% |
US MARKET
Talk about daily whipsaw – markets mildly up, then the Oval office exchange sell off, then a late almost 2% rally. End of the day – US equities closed higher on Friday, with the S&P 500 and Nasdaq adding 1.6% each, while the Dow rose 601 points. As noted, the market briefly pulled back after a tense exchange between President Donald Trump and Ukraine President Volodymyr Zelenskyy in the Oval Office, raising concerns over escalating geopolitical risks. Additionally, Trump’s tariff threats reignited retaliation warnings from China, increasing uncertainty, especially in Big Tech.
Economic data sent mixed signals: core PCE inflation eased to 3.7% as expected, but consumer spending unexpectedly dropped 0.2% in January. It was the latter that was arguably more material given the PCE is largely known before it is released given the inputs are previously released. However, January was a weather effected month (cold) and the dip was largely confined to auto sales – who buys a new car when its snowing?
Nvidia rose 0.6%, recovering from Thursday’s 8.5% drop, despite strong earnings. Tesla gained 3.9%, snapping six consecutive days of losses amid concerns over CEO Elon Musk’s political stance affecting sales. With heightened volatility, the S&P 500 and Nasdaq posted their worst monthly declines since April 2024 and September 2023, respectively, down 1.4% and 4%, while the Dow lost 2.2%.
The VIX is now materially up.
LOCAL MARKET
The S&P/ASX 200 Index fell 1.16% to close at 8,172 on Friday, reaching its lowest point in nearly two months, mirroring losses on Wall Street overnight where Nvidia and other tech stocks experienced significant selloffs. Sentiment was further dampened after US President Donald Trump confirmed that tariffs on Mexico and Canada would proceed next week, along with an additional 10% tariff on China. Australia’s economy, heavily reliant on exports and global trade, is particularly vulnerable to such trade restrictions.
Heavyweight iron ore miners led the decline, with BHP Group dropping 2.5%, Fortescue shedding 3.7%, and Rio Tinto falling 2.9%. Technology and healthcare stocks also faced pressure, including Wisetech Global (-4.9%), Appen (-20.7%), and Telix Pharmaceuticals (-6.3%). Over the week, the benchmark index tumbled 1.5% for its second straight weekly decline.
CoreLogic has just released its January data – +0.3% nationally. Seems we have just had the shortest property slump on record. Reporting season wrapped up on Friday. An overall assessment posted tomorrow.