Weekly Market Update

Weekly Market Update

• US stocks saw a mixed performance throughout the week, with the Dow closing above 50,000 for the first time on Monday.
• Tech-heavy Nasdaq Composite (^IXIC) fell over 2% on Thursday as fears of AI-driven disruption prompted investors to rotate out of technology shares.
• Inflation cooled more than expected in January, data released Friday by the Bureau of Labor Statistics showed. The Consumer Price Index showed that consumer prices increased 0.2% in January from a month earlier, and 2.4% on an annual basis.

Notable Stocks
• Nvidia (NVDA) shares fell over 10% as its gloomy profit outlook overshadowed a rise in sales amid Big Tech's AI buildout.
• Microsoft (MSFT) gained over 2% despite the overall decline in tech stocks.
• Rivian (RIVN) shares soared by more than 25% following its fourth-quarter earnings beat late Thursday.

Earnings and Economic Data
• The January jobs report signaled a resilience in the labor market, but also bolstered the case for interest rates to stay on hold for the foreseeable future.
• A softer reading on inflation will build hopes that price pressures are easing while economic growth remains intact.

Investor Takeaways
• The strong January jobs report has reduced the likelihood of near-term interest-rate cuts, a key driver of recent equity gains.
• Despite the decline in tech stocks, investors should remain cautious and keep an eye on developments in AI disruption and its impact on various sectors.