Market Highlights 💡 - 3 February 2025

Due to the dual pressures of tariff concerns and a weak energy sector, the market came under pressure, and Wall Street experienced a pullback.

🇺🇸 S&P 500 Index: -0.50% 📉

🇺🇸 Nasdaq Index: -0.27% 📉

🇪🇺 STOXX 600 Index: 0.13% 📈

🇯🇵 Nikkei 225 Index: 0.15% 📈

🇭🇰 Hang Seng Index: Market Closed

🇨🇳 Shanghai Shenzhen 300 Index: Market Closed

🇸🇬 Straits Times Index: 1.46% 📈

The U.S. stock market retreated with the S&P 500 Index down by -0.5% and the Nasdaq Index down by -0.3%, dragged down by the energy sector. Market concerns rose again after the White House confirmed that tariffs on goods from Canada, Mexico, and China will take effect on Saturday.

The U.S. December Core PCE Price Index rose by 0.2% month-over-month, in line with market expectations and higher than November's 0.1% increase, driven by rising service costs, particularly in housing and healthcare.

Japan's Nikkei 225 Index rose by 0.2%, despite the country's core inflation rate exceeding the central bank's 2% target, paving the way for further interest rate hikes.

Tokyo's core CPI for January rose 2.5% year-over-year, up from 2.4% in December, matching market expectations. This was the highest level since February 2024, driven by price increases across industries, especially raw material costs.

💡 Upcoming Events: 💡

On Monday, U.S. ISM Manufacturing PMI, Japan Manufacturing PMI Final, and China's Caixin Manufacturing PMI will be released.

On Tuesday, U.S. JOLTS Job Openings data will be published.

On Wednesday, China's Caixin Services PMI, U.S. ADP Non-Farm Employment Change, and ISM Services PMI will be the focus for investors.

On Thursday, U.S. Unemployment Claims data will be released.

At the end of the week, the U.S. Unemployment Rate will be announced on Friday.

💡 Things to Know Today: 💡

1. Trump has ordered a 25% tariff on goods imported from Mexico and Canada and a 10% tariff on Chinese goods starting Tuesday, citing concerns over fentanyl and immigration. Retaliation from these countries may escalate trade tensions.

Trump tariff

2. OpenAI is negotiating to raise $40 billion, with a potential valuation of $340 billion. SoftBank may invest $15 to $25 billion, some of which will support Stargate, a $500 billion AI project in collaboration with Oracle to strengthen U.S. AI leadership.

OpenAI

3. The U.S. is investigating whether Chinese AI company DeepSeek has used restricted Nvidia $NVIDIA Corp(NVDA)$  AI chips, which could violate export controls designed to limit China's access to U.S. advanced technology.

Deepseek

4. Samsung's fourth-quarter profits fell by 29%, down to $4.48 billion, affected by weak chip sales and sluggish smartphone demand. The company expects growth to be limited in the first quarter due to U.S. restrictions on AI chip exports to China but plans to launch upgraded memory chips in March to meet market demand.

Samsung

5. Malaysia's minimum wage will increase from 1,500 MYR to 1,700 MYR, effective Saturday (February 1), applicable to employers with five or more employees. The government emphasizes this as a wage floor, not a benchmark for skilled workers or graduates.

Malaysia minimum wages

✅ Key Takeaways: 

Currently, the market's focus is on the upcoming employment data, which will impact future inflation trends.

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