Last Friday, the major stock indexes on Wall Street in the United States showed mixed results. The Nasdaq 100 rose by 0.4%, reaching a record high closing level. In the tech sector, Nvidia increased by 2.6%, Apple was up 1.3%, while Microsoft fell by 0.5%, and Amazon slipped by 0.7%. The market was broadly influenced by U.S. economic data and Trump's trade policies, with U.S. Treasury yields dropping for the second consecutive day. The 10-year Treasury yield closed at 4.44%, down about 7 basis points.
Data released by the U.S. Department of Commerce showed that January retail sales fell by 0.9%, a steeper decline than expected, though December's data was revised up to show a 0.7% increase. In addition, the Producer Price Index for January rose, but a key component of the Federal Reserve’s preferred measure of inflation, the Core Personal Consumption Expenditures (PCE) Price Index, suggested a more moderate inflation trend, which bolstered market sentiment last week.
On trade policy, former President Trump directed his economic team last Thursday to develop a "reciprocal tariffs" plan, which means imposing equivalent tariff measures on all countries that levy tariffs on U.S. exports. However, this plan did not involve any new tariff increases. Commerce Secretary nominee Wilbur Ross stated that the government would evaluate the affected countries individually and aims to complete the relevant research by April 1.
Market participants are closely watching Trump's trade policy developments. Dennis Dick, a trader at Triple D Trading, noted that "Currently, all market focus is on Trump's next moves. A tariff war could become a key factor dominating market trends." Meanwhile, Federal Reserve Chairman Jerome Powell’s recent hawkish comments, along with previous U.S. tariffs on imported steel and aluminum, have further heightened market volatility.
