U.S. stock markets began the year with modest gains. The S&P 500 rose 0.2% to close at 6,858.47, while the Dow Jones Industrial Average increased by 0.7% to 48,382.39. In contrast, the Nasdaq Composite saw a slight decline of less than 0.1%, closing at 23,235.63, largely due to declines in key technology stocks.
The technology sector was decisive in market performance. Nvidia’s shares advanced by 1.3%, buoyed by its progress in artificial intelligence. However, this was offset by Microsoft’s stock dropping 2.2% and Tesla’s shares falling 2.6%, the latter attributed to reports of declining sales over the past couple of years. These movements highlight how much major tech companies influence overall market trends.
Internationally, markets in the UK and South Korea hit record highs, signaling strong global economic activity. In the U.S., the furniture sector thrived after President Trump announced a delay in tariff hikes on upholstered furniture, benefiting companies like RH and Wayfair, whose stocks surged by 8% and 6.1%, respectively.
Commodity markets remained stable, with crude oil prices dipping slightly; U.S. crude fell by 0.2% to $57.32 per barrel, and Brent crude also decreased by 0.2% to $60.75 per barrel. Gold prices declined by 0.3%, while Treasury yields were steady, with the 10-year note rising to 4.19%.
Looking ahead, investors await crucial economic reports on the services sector, consumer sentiment, and employment data, which could impact the Federal Reserve’s upcoming meeting. Analysts expect the Fed to keep interest rates unchanged amid ongoing inflation and trade concerns.
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