Wall Street is boosted by US core inflation being lower than expected and strong bank earnings $Citigroup(C)$
πΊπΈ S&P 500 Index: 1.84% π
πΊπΈ Nasdaq: 2.45% π
πͺπΊ Stoxx 600 Index: 1.33% π
π―π΅ Nikkei 225 Index: -0.08% π
ππ° Hang Seng Index: 0.34% π
π¨π³ CSI 300 Index: -0.64% π
πΈπ¬ Straits Times Index: -0.43% π
US Stock Market Erases Losses in 2025, S&P 500 and Nasdaq Surged 1.8% and 2.5% Respectively
The US core inflation in December came in lower than expected, with the market now anticipating the first interest rate cut of 2025 to be brought forward to June's FOMC meeting.
US annual consumer inflation for December 2024 rose to a five-month high of 2.9% YoY, in line with expectations, with the year-end increase partly driven by a low base effect from last year; while core consumer inflation slightly declined to 3.2% YoY (forecast: 3.3%).
Eurozone industrial production for November 2024 increased by 0.2% MoM, previously revised up by 0.2%, far below the market expectation of 0.3%.
Asia-Pacific Markets Generally Rise, Hang Seng Index Climbs 0.3% Ahead of Key US and China Data, Nikkei 225 Index Essentially Flat at -0.1% Amid Cautious Market Sentiment.
π‘ Upcoming Events: π‘
The US will release retail sales and jobless claims on Thursday, while Japan will release its PPI YoY.
On Friday, China will release a series of data, including GDP quarterly rate, industrial production YoY, retail sales YoY, and unemployment rate.
π‘ Things to Know Today: π‘
1. Goldman Sachs $Goldman Sachs(GS)$
Goldman Sachs
2. JPMorgan Chase $JPMorgan Chase(JPM)$
JP Morgan
3. South Korean President Yoon Suk Yeol was arrested by the corruption investigation agency on Wednesday, becoming the first sitting president to be arrested. The arrest followed a second peaceful execution of action, involving 3,000 police officers.
Arrest of Yoon Suk Yeol
4. As TikTok users migrate before a possible ban, Chinese apps Lemon8 and RedNote are gaining popularity in the US, with both apps currently ranked in the top two spots of the free iOS app store in the US.
Rednote and Lemon8
5. The US Department of Commerce announced new export controls on biotechnology equipment and technologies due to national security concerns, citing the potential misuse of these items by China to enhance military capabilities, develop AI weapons, and produce biomaterials or biological weapons.
Biotechnology lab
β Key Takeaways:
"Make long-term investments. Don't be too greedy, and don't be too fearful." β Shelby M.C. Davis
Comments
Based on the market highlights for January 16, 2025, here are the key points:
Wall Street: The S&P 500 Index surged 1.84%, and the Nasdaq increased by 2.45%. These gains were driven by US core inflation being lower than expected and strong bank earnings from Citigroup (C).
European Markets: The Stoxx 600 Index rose by 1.33%.
Asian Markets: The Nikkei 225 Index in Japan experienced a slight decline of 0.08%, while the Hang Seng Index in Hong Kong increased by 0.34%. However, the CSI 300 Index in China declined by 0.64%, and the Straits Times Index in Singapore dropped by 0.43%.
US Stock Market: The S&P 500 and Nasdaq not only recovered from previous losses but also surged by 1.8% and 2.5%, respectively.
US Core Inflation: December's US core inflation was lower than expected, prompting speculation that the first interest rate cut of 2025 may be brought forward to June's Federal Open Market Committee (FOMC) meeting.
Eurozone Industrial Production: November 2024's industrial production in the Eurozone increased by 0.2% month-on-month, falling below market expectations of 0.3%.
Strong Bank Earnings: Citigroup (C) and JPMorgan Chase (JPM) both reported strong earnings. JPMorgan Chase posted record Q4 2024 earnings with EPS of $4.81 and revenue of $43.74 billion, supported by strong net interest income, trading revenue, and lower expenses.
South Korean President Arrested: South Korean President Yoon Suk Yeol was arrested by the corruption investigation agency, making him the first sitting president to be arrested.
Popularity of Chinese Apps: As TikTok users migrate before a possible ban, Chinese apps Lemon8 and RedNote are gaining popularity in the US, currently ranking in the top two spots of the free iOS app store in the US.
New US Export Controls: The US Department of Commerce announced new export controls on biotechnology equipment and technologies due to national security concerns regarding their potential misuse by China.
In summary, Wall Street and the US stock market experienced significant gains, driven by positive economic indicators and strong bank earnings. However, there were mixed performances in Asian markets. Additionally, there were notable developments in South Korea's political landscape and the popularity of Chinese apps in the US. It is important to make long-term investments and avoid being swayed by short-term greed or fear.
Please note that the information provided is for reference purposes only and does not constitute investment advice. Investment involves risks, and it is essential to conduct thorough research and consider your own financial situation before making any investment decisions.