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WEEKLY SUMMARY: The S&P 500 just hit its highest weekly close ever
The Nasdaq was the week's best performing major equity index (up almost 3%) followed by the S&P 500. The laggard was Small Caps which ended the week unchanged. Growth stocks outperformed value shares as Technology, Energy, & Materials all outperformed with only the Healthcare sector in the red for the week. Stocks had their best day of the week on Thursday, largely in response to President Donald Trump’s decision to not introduce new global tariffs, instead signing an order that—following further study—could lead to the implementation of reciprocal tariffs on a country-by-country basis by April 1. On the macro side, the headline consumer price index (CPI) rose 0.5% month over month and 3.0% year over year in January, accelerating from December’s readings of 0.4% and 2.9%, respectively. U.S. Treasuries were somewhat volatile, with the 10-year Treasury yield touching an intraday high of 4.66% following Wednesday’s CPI report, before decreasing later in the week. The dollar tumbled for the 4th week in the last 5, back to its lowest since Dec 2024. The pan-European STOXX Europe 600 Index ended 1.78% higher after reaching a fresh record level. Hopes of an end to the Ukraine-Russia conflict and robust earnings reports buoyed sentiment. In Hong Kong, the Hang Seng Index surged 7.04%, driven by strength in tech shares as investors bought up AI names. Gold is up for the 8th straight week, despite getting hammered on Friday (worst day since Dec 18th), back below $2900. Bitcoin rallied on the week.
Have a great week-end
Charles for the team