Major U.S. stock indexes finished the week lower as concerns regarding the disruptive potential of AI weighed on stocks across a broad range of industries. The Nasdaq Composite fared worst, shedding 2.10%, while the S&P500 Index and Dow Jones Industrial Average fell 1.39% and 1.23%, respectively. The Russell 1000 Value Index outperformed its growth counterpart for the 7thconsecutive week, extending its YTD lead to over 1,100 basis points. On the macro side, hiring in the U.S. was stronger than expected in January as U.S. employers added 130,000 jobs during the month, the highest monthly gain in over a year. The unemployment rate also declined to 4.3% from 4.4% in December. On Friday, US CPI data for January indicated that prices rose 0.2% MoM and 2.4%YoY, down from December’s readings of 0.3% and 2.7%, respectively. Both readings were generally below consensus estimates. U.S. Treasuries generated positive returns for the week, with yields across most maturities declining from where they ended the prior week. The STOXX Europe 600 Index hit a new high during the week but ended broadly unchanged (+0.09%). Japan’s stock markets rose sharply over the week, with the Nikkei 225 Index gaining 4.96%. JGB yields little changed; yen strengthens after government verbal intervention. Chinese stocks ended the week modestly higher ahead of the Lunar New Year holidays. The dollar and bitcoin both ended the week lower. Gold managed gain on the week, holding back above $5000 on Friday.
Have a great weekend and happy Valentine’s day !
Charles & Syz Research Lab