The world’s biggest stock market is heading for its best start for a new US president since Ronald Reagan was sworn in to power in 1985.
Equities hovered near all-time highs on Friday, with the S&P 500 climbing over 2% this week. That was after President Donald Trump talked up policies to boost economic growth and lower taxes, while appearing to soften his stance toward tariffs on China — even as he continues to threaten sweeping action. The dollar fell to a one-month low and was poised for its largest weekly slide since November 2023.
“It is early days but nothing that President Donald Trump has said or done has caused a bad reaction in financial markets,” said Chris Iggo at AXA Investment Managers. “Quite the contrary. It is paying to stay invested.”
Wall Street also waded through a slew of economic data on Friday.
US consumer sentiment declined in January for the first time in six months. Consumers expect prices will climb at an annual rate of 3.2% over the next five to 10 years, up from the 3% expected in December. Existing-home sales picked up, while business activity moderated as growth in services cooled.
The S&P 500 was little changed. The Nasdaq 100 wavered. The Dow Jones Industrial Average fell 0.3%. A Bloomberg gauge of the “Magnificent Seven” megacaps added 0.3%. The Russell 2000 fell 0.4%. Meta Platforms Inc. climbed on plans to invest as much as $65 billion on projects related to artificial intelligence in 2025. Texas Instruments Inc. slid on a disappointing earnings forecast.
The yield on 10-year Treasuries was little changed at 4.64%. The Bloomberg Dollar Spot Index fell 0.5%. The yen erased earlier gains as Bank of Japan Governor Kazuo Ueda offered little guidance on the timing of the next interest-rate hike.
Corporate Highlights:
- American Express Co. profits increased 12% as well-heeled consumers spent more than analysts expected on their credit cards over the holidays, a tailwind the firm said it expects will continue.
- Boeing Co. suffered another quarter of fresh charges and losses, highlighting the long road ahead for Chief Executive Officer Kelly Ortberg as he tries to stabilize the US aircraft manufacturer.
- Novo Nordisk A/S’s experimental shot delivered as much as 22% weight loss in an early-stage trial, boosting investors’ hopes for the drugmaker’s pipeline.
Some of the main moves in markets:
Stocks
- The S&P 500 was little changed as of 10:04 a.m. New York time
- The Nasdaq 100 was little changed
- The Dow Jones Industrial Average fell 0.3%
- The Stoxx Europe 600 fell 0.2%
- The MSCI World Index rose 0.2%
- Bloomberg Magnificent 7 Total Return Index rose 0.3%
- The Russell 2000 Index fell 0.4%
Currencies
- The Bloomberg Dollar Spot Index fell 0.5%
- The euro rose 0.8% to $1.0499
- The British pound rose 0.7% to $1.2445
- The Japanese yen fell 0.1% to 156.21 per dollar
Cryptocurrencies
- Bitcoin rose 2.4% to $105,577.76
- Ether rose 4.5% to $3,393.86
Bonds
- The yield on 10-year Treasuries was little changed at 4.64%
- Germany’s 10-year yield advanced three basis points to 2.58%
- Britain’s 10-year yield advanced two basis points to 4.65%
Commodities
- West Texas Intermediate crude fell 0.3% to $74.42 a barrel
- Spot gold rose 0.8% to $2,778.12 an ounce
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