WEEKLY SUMMARY: US, European and Japan equities hit new ATHs
The S&P 500 Index hit new intraday highs, as did the Nasdaq Composite Index, which posted its biggest daily gain in about a year on Thursday, when NVIDIA added a record USD 277 billion to its market capitalization. The chipmaker reported strong quarterly revenue and earnings that topped Wall Street estimates. The pan-European STOXX Europe 600 Index climbed to a record level, ending the week 1.15% higher. Japanese equities ended Thursday at a new all-time high, with the Nikkei 225 Index breaking the previous record set more than 30 years ago in 1989. Chinese equities rallied as recovery hopes rose following buoyant holiday spending during the prior week’s Lunar New Year holiday. The Shanghai Composite Index rose 4.85%. In Fixed income, US Treasuries were bid with the long-end outperforming overall. Gold gained during 6 of the last 7 days to close at the highs since the start of the month. Oil prices tested up to January's highs (WTI $79) before fading. On the economic side, US initial and continuing jobless claims both came in below consensus estimates, suggesting that the labor market remained tight. The S&P Global manufacturing activity unexpectedly rose to 51.5, its highest level in 17 months. The services PMI reading remained above 50. In the Eurozone, early PMI data for February suggested that the economy could be stabilizing, helped by a recovery in the services sector. Separately, final data confirmed Germany’s economy contracted 0.3% in the fourth quarter.
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The S&P 500 closed at a fresh all-time high on Friday, rising for a 5th consecutive week, its longest weekly winning streak since 2024. This brings the index up +15% since the March 30 low, also marking April as the best month for stocks since November 2022. Stocks largely shrugged off the stream of sometimes conflicting headlines about the war in the Middle East and a surprisingly hawkish Federal Reserve policy meeting to post solid gains in most major indexes. Large-cap stocks outpaced small-caps, and value outperformed growth. Five of the “Mag 7” companies reported earnings, with financial results generally meeting or exceeding expectations for these bellwether firms. Meanwhile, major central banks keep rates on hold amid war uncertainty.


