U.S. Stocks Lower Amid Tariff Uncertainty, Chinese Stocks Rally Led by Tech and EV Players

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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 Feb 7, major stock indexes declined during the week, although the S&P 500 Index(SPX) held up best, falling just 0.24%. Stocks opened sharply lower to start the week in response to the prior Friday’s announcement from Trump stating that the U.S. would be implementing 25% tariffs on imports from Mexico and Canada, along with 10% levies on Chinese imports, as of February 1. However, by the end of the day Monday, Trump had agreed to postpone tariffs on Mexico and Canada for 30 days, which provided some relief and seemed to help stocks recover some of their early losses by the end of the week. Refer to below major indexes performance table for the week.

Key highlights for the week and next:

1.    U.S. manufacturing PMI expanded in January for the first time in 27 months. Services PMI for January declined from December, although the reading remained in expansion territory at 52.8. ISM Manufacturing Business Survey Chair Timothy Fiore noted that potential tariffs represent a “huge threat” to a sustained recovery in the U.S. manufacturing sector. 

2.    Earnings Report: data shows 77% of S&P 500 Index companies that have reported fourth-quarter results through Friday have posted consensus-topping earnings, with an average growth rate of 16.4% (compared with estimates for 11.9% earnings growth). Of the companies that have reported thus far, 63% have also surpassed sales expectations.

3.    US Jobs gradual cooling. Nonfarm payrolls reported 143k jobs were added in January, down from December. The unemployment rate also declined unexpectedly, to 4.0% from 4.1% in the prior month.

SPX sectors in play

Seven out of the 11 SPX sectors recorded weekly gain. Energy(XLE) and Technology(XLK) were among top gainers while consumer Discretionary(XLY) lagged as Amazon(AMZN) dropped 4.05% after its releasing its earnings. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

All three indexes have been in sideway rangebound within its four-week trading range. Uptrend still intact well on their weekly charts. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

China stock markets rose in an abbreviated trading week as evidence of strong consumer spending over the Chinese New Year holiday offset Trump’s decision to slap a 10% tariff on Chinese imports. The Shanghai Composite Index(SSE) added 1.63% while the blue chip CSI 300 gained 1.98% in the shortened trading week. In Hong Kong, the benchmark Hang Seng Index advanced 4.49%, its best weekly performance in four months, driven by gains in technology companies. (refer to the above weekly performance table).

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

1.    Travel and retail spending over the Chinese New Year holiday, a key consumption period for China, pointed to improved domestic demand. Box office receipts over the eight-day holiday jumped 18% to USD 1.3 billion over last year’s holiday, Bloomberg reported, citing data from ticketing site Maoyan. The number of domestic trips rose to a record 501 million during the holiday, up 5.9% from last year, while spending on domestic trips rose 7% to the equivalent of USD 94.4 billion, according to China’s Ministry of Culture and Tourism.

2.    Despite the solid holiday sales data, other readings signaled weakness in the broader economy. The Caixin China General Services Purchasing Managers’ Index (PMI) slipped to 51 in January, down from 52.2 in December. Though the PMI reading surpassed the 50 level that separates growth from contraction, it revealed that the pace of expansion in business activity and new orders both slowed to their lowest rates in four months, according to an economist at Caixin. Earlier in the week, Caixin reported that its manufacturing PMI slowed to 50.1 in January, down from December’s 50.5 reading and missing economists’ forecasts. The readings from Caixin, a private survey, came a week after China’s official manufacturing PMI unexpectedly contracted in January.

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

SSE weekly chart

.HSI weekly chart

Singapore

The Straits Times Index (STI) edged up 0.15% for the week after fully recovering from early losses in the week. SGX stock price was a standout with 14% surge to close at 13.99, hitting 17 year high, after it released record first-half revenue and net profit for 1HFY2025 ended Dec 31, 2024. 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.