Stocks in the US closed sharply higher on Friday, fuelled by a tech sector rebound and significant gains across major indices. The S&P 500 rose 1%, and the tech-heavy Nasdaq 100 advanced 1.6%, the Dow Jones climbed 0.8%, or 334 points. Big tech stocks led the rally, with Tesla jumping 3%, Nvidia gaining 3.1% and Microsoft rising 1%. Consumer discretionary stocks also outperformed with Amazon up 2.4%. Sentiments improved on reports of easing inflation pressures and solid earnings from major banks, fuelling optimism for potential interest rate cuts. As Donald Trump prepares for his second presidential term, investors are also watching for policy shifts amid concerns over tariffs and tax changes. The three major indices posted their first weekly gain of 2025, with the Dow and S&P 500 up 3.2% and 3.4%, respectively—marking their largest weekly gains since November. The Nasdaq saw a 3.9% weekly gain, ahead of the Martin Luther King Jr. holiday.
The BSE Sensex finished about 0.6% lower at 76,619.3 on Friday, halting gains in the prior three sessions, mid concerns over slowing earnings and foreign fund outflows. Market sentiment was further dampened by uncertainty surrounding the incoming Trump administration and rising crude prices. IT stocks weighed heavily on the index, with Infosys dropping 5.8% as the worst performer after multiple brokerages raised concerns about the quality of its quarterly results, citing a higher proportion of third-party items in its deal pipeline. HCLTech also missed revenue expectations, while Axis Bank dropped nearly 5% after its earnings report, as brokerages revised their price targets downward, putting pressure on the banking sector. On the upside, Zomato (+2.8%) was the top gainer, followed by Reliance (+2.6%), after it topped Q3 profit estimates. For the week, India's stock market fell roughly 1%, notching the 2nd consecutive weekly decline.
The DAX rose about 1.2% to close at 20,897.5 on Friday, marking its fourth consecutive day of advances and reaching new record highs. Market sentiment was bolstered by strong corporate earnings and signs of cooling inflation across both sides of the Atlantic, while stronger-than-expected growth data from China further fuelled optimism. Among single stocks, top gainers included Siemens Energy, Heidelberg Materials and Beiersdorf, adding between 2.8% and 3.1%, while Sartorius (-1.6%), Merck (-1.6%) and Brenntag (-1.2%) posted the biggest losses. For the week, the DAX rose about 3.4%, its strongest weekly performance since early December 2024.
The MOEX Russia Index rose to 2,875 in January, the highest level in five months, to hold the surge from December triggered by the Bank of Russia’s unexpected decision to not extend its interest rate hiking cycle. The decision preceded reports that CBR Governor Nabiullina met with politicians and business leaders that have warned the central bank against warning interest rates. Despite the hold at 21%, the central bank raised inflation forecasts, and markets expect the inflation rate to have reached a near two-year high at the end of the year. The hold drove heavyweights Sberbank, Rosneft, and Lukoil to rebound sharply from their near 18-month lows from the mid-December. On the other hand, Gazprom remained relatively close to its record low after gas flows from Russia to Europe through Ukraine at the turn of the year. Also, Surgut and Gazpromneft, major seaborne exporters for oil and fuel, recorded sharp losses since the start of January after being sanctioned by the US.
