US Stocks rallied on Friday, as the S&P 500 closed at all-time high of 4,839, adding 1.2%, the Dow Jones surged 395 points and the Nasdaq advanced 1.7%. The technology sector led the session's gains as chip makers extended their rally, fuelled by Taiwan Semiconductor's better-than-expected forecast the previous day and optimism around AI. Nvidia reached a new record high of $594.91 with a 4.2% increase, Advanced Micro Devices surged by 7.1%, and Texas Instruments soared by 4%. On the earnings front, Travelers Company jumped 6.7% after the insurer's fourth-quarter profit more than doubled, while Fifth Third Bancorp added 2.9% after beating estimates for both revenue and earnings. Moreover, Michigan consumer sentiment unexpectedly reached 2021 highs, and inflation expectations for the year ahead fell to the lowest in three years. For the week, the S&P 500 rose 1.1%, the Nasdaq jumped by 2%, and the Dow Jones ended 0.5% higher.
The German DAX 40 was unable to sustain early gains and closed marginally below the flatline at 16,555 on Friday, booking a 0.9% decline on the week in a period marked by persistent hawkish remarks from ECB policymakers. New data revealed that German producer prices fell more than expected in December, showing an 8.6% year-on-year decrease. Still, investors focused on remarks by ECB Governing Council members that pushed back against the market’s expectations of imminent rate cuts. On the corporate front, chemical giant BASF erased its early jump and closed 1.4% lower after its operating income in 2023 fell short of forecasts. Auto giants also booked losses, with Mercedes and Volkswagen both dropping close to 1.5%.
The BSE Sensex added 496 points, or 0.7% to close at 71,683.23 on Friday, breaking its three-day losing streak. The upswing was led by top IT and tech firms like Bharti Airtel (+3.5%), while major bank shares remained subdued. Traders maintained their focus on the outlook for interest rates and corporate earnings, particularly with the spotlight on results from heavyweight Reliance Industries. However, for the week, the index saw a 1.2% decline, reversing the previous week's rise, influenced by negative global cues, notably concerns over delayed rate cuts by major central banks and escalating tensions in the Middle East.
The S&P/ASX 200 Index jumped 1.02% to close at 7,421 on Friday, snapping a five-day decline .Australia’s resource-heavy bourse was lifted by a rebound in commodity prices on hopes of further stimulus from China and an improving demand outlook for oil. Mining and energy stocks led the charge, with gains from Rio Tinto (0.9%), Fortescue Metals (2%) and Woodside Energy (1.6%). Whitehaven Coal also rallied 3.8% on robust production and acquisition talks. Heavyweight financial, healthcare and technology stocks advanced as well. Still, the benchmark index declined 1.03% for the week.
The Nikkei 225 Index jumped 1.4% to close at 35,963 while the broader Topix Index gained 0.72% to 2,510 on Friday, with Japanese shares snapping a three-day decline as easing inflationary pressures in the country reinforced a dovish outlook on Bank of Japan monetary policy. Data showed that Japan’s headline inflation rate fell to a 17-month low of 2.6% in December from 2.8% in November, while the core inflation print dropped to an 18-month low of 2.3%. Investors now look ahead to the central bank’s policy decision next week. Japanese shares also tracked gains on Wall Street overnight as strong corporate earnings powered US technology stocks higher. Technology stocks led the advance, with strong gains from Tokyo Electron (6%), Advantest (8.2%), Disco Corp (3.8%), Renesas Electronics (7.6%) and SoftBank Group (1.3%). The Nikkei and Topix indexes finished the week 1.08% and 0.63% higher, respectively.
The Shanghai Composite fell 0.47% to close at 2,832 while the Shenzhen Component lost 0.68% to 8,787 on Friday, with mainland stocks failing to build on gains from the previous session as investors waited for signs of fresh stimulus measures from Beijing. Earlier this week, data showed that China’s economy grew 5.2% year-on-year in the fourth quarter, missing forecasts for a 5.3% expansion. Markets are betting that the country’s deflationary environment and shaky economic recovery will force authorities to implement more policy support measures this year. Notable losses were seen from heavyweight firms such as Longi Green Energy (-3.1%), Eoptolink Technology (-2.9%), iSoftStone (-9.3%), Shanghai Dragon (-6.3%) and Ja Solar(-2.1%). The Shanghai and Shenzhen indexes finished the week 1.72% and 2.33% lower, respectively.
