U.S Stocks Continue March toward Record Highs as Trump Era Starts

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Main Content:

1.    Major indexes weekly performance 

2.    U.S stocks weekly wrap 

3.    S&P 500 sector index weekly/month performance 

4.    China/Hong Kong stocks weekly wrap 

5.    Singapore stocks weekly wrap 

6.    Major indexes weekly chart and technical support & resistance levels

U.S.

For the week of Jan 24, major stock indexes finished the holiday-shortened week higher, with the S&P 500 Index(SPX) notching a new record high on Thursday before dipping modestly lower on Friday. Large-cap indexes generally outperformed their smaller-cap peers. Headlines during the week were largely dominated by political developments in the wake of Monday’s inauguration of President Donald Trump. The developments seemed to be generally well received by investors and helped drive positive sentiment early in the week. Refer to below major indexes performance table for the week.

Key highlights for the week and next:

1.    Tariffs: Trump did not impose a new round of tariffs on day one—as some had feared—and instead, called on federal agencies to conduct a review of U.S. trade policies to determine the impact of potential future tariffs, although he did pledge to impose 25% tariffs on Canada and Mexico as soon as February. 

2.    Trump also stated that he would “rather not have to use” tariffs on China, which helped fuel optimism for a potential trade deal between the world’s two largest economies. The developments seemed to be generally well received by investors and helped drive positive sentiment early in the week. 

3.    Stargate project: Trump also announced a new joint venture between Softbank, OpenAI, Oracle, and investment firm MGX called Stargate, which will reportedly provide up to USD 500 billion toward the construction of data centers and other artificial intelligence (AI)-related infrastructure in the U.S. over the next several years. Stocks with exposure to AI rallied following the announcement in anticipation of the potential jump in spending. 

4.    Consumer Sentiment fell in January for the first time in six months to 71.1, from 74.0 in December, largely due to rising inflation expectations and concerns about unemployment. 

5.    Important events coming week: FOMC meeting scheduled on 28-29 Jan next week. FedWatch tools shows 97.9% chance the Fed current rate of 4.25%-4.50% will be remained. No change. 

SPX sectors in play

All but one the 11 SPX sectors recorded weekly gain. Energy(XLE) was the only sector lagged as Trump “ Drill, baby drill” plan to support oil and gas production in the U.S. Growth and tech stocks outperformed, Communication Services(XLC) and Health Care(XLV) were among top gainers. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

All the three major indexes continue their rebound into 2^nd week, SPX index hit new record high intra-week, both SPX and Nasdaq Composition Index(COMP) closed at their recent top, while Dow just 1.4% below its recent high. All uptrend well intact. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

China stocks rose amid news that President Trump may be taking a softer stance on China tariffs. The Shanghai Composite Index(SSE) added 0.33%, while the blue chip CSI 300 was up 0.54%. In Hong Kong, the benchmark Hang Seng Index gained 2.46%. (Refer to the above weekly performance table).

Key highlights for the week and outlook for China/HK:

1.    Chinese banks left their one- and five-year loan prime rates unchanged at 3.1% and 3.6%, respectively, for the third straight month. In October, Chinese lenders slashed the benchmark lending rates by a greater-than-expected 25 basis points to revive the economy. Analysts anticipate that the central bank will continue easing monetary policy this year, including potentially cutting the reserve requirement ratio and interest rates, as Beijing steps up efforts to combat the market uncertainty ushered in by a second Trump presidency. 

2.    China's youth unemployment rate eased for the fourth consecutive month since hitting its highest level of 2024 in August. The jobless rate for 16- to 24-year-olds excluding students declined to 15.7% in December from 16.1% in November, according to official data. Data released the prior week showed the nationwide jobless rate ticked up to 5.1% in December from 5% the prior month.

 Click below SSE and .HSI indexes for their weekly charts. 

SSE weekly chart

.HSI weekly chart

Singapore

The Straits Times Index (STI) edged lower 0.17% this week, closing at 3804.26 level. The index appears been in sideway consolidation around 3800 level for the eight weeks. HKLand, Venture and YZJ Ship are among the top gainers. Refer to below STI stocks weekly performance table.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports.