This week marked a tentative start to trading. However, bolstered by a roll-back on Federal Reserve cuts, the US dollar seems set for its strongest weekly performance since July 2023.
Asian stocks performance trips up global equities
According to Reuters data, the MSCI’s Asia-Pacific shares index recorded a 0.18% Hang Seng (.HSI) decline during Friday morning trades. The MSCI’s world index performance displayed no drastic fluctuations and is set to close the week on a 1.7% negative. An exception to these mediocre movements, the Japanese Nikkei (.N225) was up by 0.5% following an increase in US Treasury yields, which are just below the 4% benchmark.
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Stock futures ended Thursday’s trading on a mingled note. The Dow Jones Industrial Average and S&P 500 gained 0.06% and 0.04%, respectively, while the Nasdaq Composite dipped by 0.04%. This performance followed the fourth consecutive drop in the S&P 500 and fifth in the Nasdaq Composite. Although the Dow Jones ended its Thursday trading on a higher note, it still signalled red for the first week of the year so far.
These movements are affecting the 9-week winning streak of the three major averages. The Nasdaq Composite took the biggest knock with a 3.3% loss so far.
Investment managers also seem to be taking a step back from big tech stocks such as Apple (AAPL). CNBC quoted Amy Kong, a partner in the Corient wealth management firm, who, in a Closing Bell interview, commented:
We are pausing on any new dollars going into this group of stocks. In general, the market after this great burst of optimism last quarter, is now sitting at a price-to-earnings ratio of 20-times this year’s earnings.
