By Vivek Kumar
Moving Markets Today: Tech Rally Sparks Global Stocks; Meta Soars Over 15%, Amazon Climbs Over 7%; Apple Drops 3%, Oil Prices Surge; Focus Shifts to U.S. Non-Farm Payrolls
U.S. stocks closed higher, anticipating major tech earnings despite the Federal Reserve’s hawkish stance. In Asia, markets were lifted by a late surge in U.S. tech stocks on Friday, driven by strong results from Meta and Amazon. Meta Platforms’ shares soared over 15% in after-hours trading, while Amazon.com gained over 7%; however, Apple saw a nearly 3% dip in its shares. As the week concludes, all eyes are on the U.S. jobs market, with the Department of Labor set to publish the January employment report, capturing significant attention. Here are five key takeaways for your day.
Shares of Meta and Amazon Impress, While Apple Disappoints Investors
Meta Platforms surged over 15% in after-hours trading following its robust revenue report, announcement of its first dividend, and a $50 billion buyback. Amazon.com also rose by over 7% post-earnings, beating revenue expectations with strong holiday sales and growth in AWS. However, Apple Inc. dipped nearly 3% as its China sales missed targets, leading to a forecasted revenue drop. Qualcomm fell 5.0% due to concerns over Android sales in China.
China Property Sector Downturn Moderating, Says China Index Academy Survey
Recent data and a survey indicate a significant increase in China’s new home prices, the fastest in almost two and a half years, Reuters reported. Additionally, government land sales ended a 23-month decline, suggesting a potential slowdown in the property sector‘s downturn. In January, average prices across 100 cities rose for the fifth consecutive month, with a 0.15% month-on-month increase, surpassing December’s 0.10% rise. This growth represents the quickest rise since August 2021. Moreover, the number of cities experiencing month-on-month price increases rose to 49 in January from 47 in December.
Oil Prices Rise as OPEC+ Maintains Output Reductions
Oil prices rose in early Friday trade after OPEC+ decided to maintain its output policy, rebounding from losses driven by unconfirmed reports of a ceasefire between Israel and Hamas. Brent crude futures increased by 0.6% to $79.20 a barrel, while U.S. West Texas Intermediate crude futures rose by 0.5% to $74.22 a barrel. Thursday’s decline of over 2% was attributed to the ceasefire uncertainty, which was later denied by a Qatari official, mentioning Hamas’ positive reception of a ceasefire proposal earlier in the week.
What’s Coming Up
Scheduled for release later today, the closely observed nonfarm payrolls report will be eagerly awaited by traders for further cues on the Federal Reserve’s policy path. Economists project that the U.S. economy expanded by 180,000 new jobs in January, while the unemployment rate is expected to edge up from 3.7% to 3.8%.
Asian Markets Rise on Heels of U.S. Tech Rally
Major U.S. stock indices showed gains, with the S&P 500 climbing 1.25% to close at 4,906.19 points, the Nasdaq rising 1.30% to 15,361.64 points, and the Dow Jones Industrial Average increasing by 0.97% to 38,519.84 points. In Asia, Japan’s Nikkei 225 index went up by 1%, contributing to a weekly gain of 1.7%, while MSCI’s index of Asia-Pacific shares, excluding Japan, also saw a rise of 1.1%, marking a 0.6% weekly increase. Hong Kong’s Hang Seng index surged by 1.5%, while China’s blue-chip CSI300 index edged up by 0.1%.
In the bond market, long-term Treasury yields remained steady at 3.8802% after dropping 10 basis points to 3.817%, while shorter-term two-year yields held firm at 4.204% following a 4-basis point decline to 4.134% overnight. The decline in yields put pressure on the U.S. dollar, which fell 0.5% against other major currencies, trading around 103.02, near its recent low. Gold prices remained unchanged at $2,054.78, and Bitcoin traded flat at $43,085.
