US stock futures rose on Friday, propelled by better-than-expected earnings from tech giants like Apple (AAPL) and Intel (INTC), amidst a complex backdrop of economic indicators and policy threats. Apple’s shares rose nearly 4% to $247 a share in pre-market trading after reporting first-quarter profits that exceeded expectations, despite weaker iPhone and China sales. This positive outlook for future revenue suggested a recovery on the horizon, lifting investor spirits. Intel also contributed to the tech sector’s rebound with earnings that topped forecasts, countering earlier concerns from the introduction of low-cost AI models by Chinese startup DeepSeek.
The anticipation of key economic data, including an inflation report, has added a layer of tension to market dynamics. Investors are closely watching these figures as they could influence the Federal Reserve’s policy decisions. Inflation has been a focal point, with the market expecting the upcoming data to show a moderate increase, potentially impacting monetary policy.
However, the week’s gains were not uniform across all indices. While the Dow Jones Industrial Average (DJIA) was poised for a gain, both the S&P 500 (SPX) and Nasdaq Composite (COMP) were set for slight weekly declines, primarily due to the tech sector’s earlier turbulence. The tech market’s volatility was largely driven by fears of competition from innovative, yet cheaper, AI technologies from China, which had initially unsettled investors.
Adding to the economic uncertainty, President Trump’s recent threats to impose tariffs have reintroduced trade war concerns. He has warned of a 25% tariff on imports from Canada and Mexico starting February 1st, reviving fears of economic repercussions from strained trade relations with major US partners. Moreover, Trump’s social media comments aimed at BRICS countries, threatening 100% tariffs if they move away from the US dollar, have introduced a geopolitical dimension to market movements. This rhetoric has bolstered the dollar, which was on track for its strongest weekly performance since November.
The juxtaposition of these economic and political elements has created a multifaceted scenario for investors. On one hand, better-than-expected corporate earnings provide a positive signal for stock markets, particularly in technology. On the other, looming tariffs, inflation reports, and international trade tensions introduce significant variables that could sway market direction in the coming weeks. As January draws to a close, the major stock indices are looking at potential monthly gains, with the Dow particularly well-positioned for a decent increase, highlighting a market persistent in remaining green yet wary in the face of multifaceted challenges.
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