| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 44,711.43 | 342.87 | 0.77% |
| S&P 500 | 6,115.07 | 63.1 | 1.04% |
| Nasdaq | 19,945.64 | 295.69 | 1.50% |
| VIX | 15.1 | -0.79 | -4.97% |
| Gold | 2,955.80 | 10.4 | 0.35% |
| Oil | 71.47 | 0.18 | 0.25% |
US MARKET
The three major averages in the US swung around the flatline on Friday, as traders digest much weaker-than-expected retail sales that raised concerns about the strength of the US consumer spending. Retail sales declined 0.9% last month and the control sales which is used to calculate GDP declined 0.8%. Consumer spending was likely hit by harsh weather and wildfires in LA. On the close, the S&P 500 was effectively unchanged on the day, but flirting with a record high. The Nasdaq 100 up 0.3%. The Dow Jones Industrial Average down 0.4%. The Russell 2000 down 0.2%.
Meanwhile, President Trump signed a directive instructing the US Trade Representative and Commerce Secretary to propose new country-specific tariffs. Investors await further details and remain hopeful that negotiations could avert the levies. Money markets are now pricing in around 40bps of Fed cuts in 2025. Energy and materials were the top performing sectors while consumer staples booked the biggest loss. Among megacaps, Nvidia (1.4%), Apple (0.6%) and Tesla (0.6%) were higher while Broadcom sank more than 2.5%. So far on the week, the S&P is up 1.5%, the Dow gained 0.9% and the Nasdaq added 2.2%.
The key release in these knee jerk markets was the January US retail sales. There is a lot of seasonal factors to digest in the release which we cover in the US bond market section. Suffice to say regarding policy, the markets are becoming a lot less responsive to tariff announcements.
AUSTRALIAN EQUITY MARKET WRAP
The S&P/ASX 200 Index closed 0.2% higher at 8,556 on Friday, trimming earlier gains. The index had reached an all-time high earlier in the session as investors reacted positively to US President Donald Trump’s decision to delay the implementation of reciprocal tariffs. Strong corporate earnings from major US companies also supported the bullish sentiment, outweighing concerns over stronger-than-expected inflation figures in the US.
Additionally, Australia’s resource-heavy bourse benefitted from rising commodity prices, fuelled by a sharp decline in the US dollar and Treasury yields. Among large-cap stocks, notable gains were seen from CSL Ltd (+1.1%), Wesfarmers (+0.8%), Aristocrat Leisure (+0.7%), and Zip Co (+0.9%). The benchmark index rose 0.5% for the week and is up 4.9% so far this year.