Wall Street’s main indexes closed lower on Friday but the market still had its best start to a presidential term since Ronald Reagan assumed power in 1985.
Investors stepped back while they digested a mixed bag of economic data and earnings reports and prepared for a week filled with economic releases and a Federal Reserve meeting.
The S&P 500 lost 0.3 per cent on Friday, the Dow Jones Industrial Average fell 0.3 per cent and the Nasdaq Composite lost 0.50 per cent.
However, the indexes advanced for the second week in a row, with the S&P 500 up 1.7 per cent, while the Nasdaq rose 1.65 per cent and the Dow climbed 2.15 per cent.
The technology sector was the biggest drag on the market as megacap stocks, including artificial intelligence chip leader Nvidia, reversed a sharp rally seen earlier in the week.
“For now, sentiment towards US stock markets remains positive mainly because the technology sector is continuing to remain the gift that keeps on giving,” said Fawad Razaqzada, market analyst at City Index and Forex.com.
“The latest wave of optimism has been fuelled by advancements in AI and solid corporate earnings. President Trump’s announcement of a $500 billion investment in AI infrastructure, including the Stargate project with OpenAI, Oracle and Softbank, has been the centrepiece of this momentum.
"For now, valuation concerns and rising debt levels have been pushed to the backburner.”
Traders are betting the Fed will keep borrowing costs unchanged at its January 28-29 meeting, and expect its first rate cut in June, according to the latest data from CME Group’s FedWatch tool.
After lowering rates three times in late 2024, Fed Chair Jerome Powell and his colleagues are expected to hold rates steady until they see inflation make more downward progress towards their 2 per cent target.
The Big Tech earnings season starts next week. Investors are eager to see whether demand for AI will live up to expectations. The industry was buoyed when SoftBank Group, OpenAI and Oracle formed a $100 billion joint venture to fund AI infrastructure.
“Mr Trump’s massive AI spending commitment has driven megacap tech stocks higher, countering the cautious tone set by his protectionist trade policies,” Mr Razaqzada said.
“Despite the lingering threat of tariffs on Europe and China, investors seem focused on the growth potential offered by this ambitious investment.
“This ‘buy-the-dip’ mentality remains strong, with traders balancing optimism from growth initiatives against risks from potential trade disputes. Mr Trump’s moderated tariff proposals, including a 10 per cent levy on Chinese goods, offer some relief compared to the 60 per cent rate discussed during his campaign.”
Investors are also bracing for next week’s key inflation and economic growth data and the Fed meeting, while also waiting for policy updates from the Trump administration.
They worry that Mr Trump's proposed tariffs could exacerbate inflationary pressures and slow Fed rate cuts.
Mr Trump has said tariffs on Mexico, Canada, China and the EU could be announced on February 1.
The benchmark S&P 500 had ended Thursday with a record high, after Mr Trump called for taxes, oil prices and interest rates to be lowered during the first international appearance of his second term, at the World Economic Forum in Davos.
The S&P 500's biggest drag was Nvidia, which lost 3.1 per cent. Other heavyweight laggards were Microsoft, down 0.6 per cent and Tesla, which fell 1.4 per cent.
Dragging on the blue-chip Dow was Boeing, which lost 1.4 per cent after the plane maker warned of a fourth-quarter loss of about $4 billion.
Cryptocurrency-linked companies rallied following Mr Trump’s executive order favouring the industry.
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
KILLING OF QASSEM SULEIMANI
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
EXPATS
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
SPECS
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The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
Jebel Ali Dragons 26 Bahrain 23
Dragons
Tries: Hayes, Richards, Cooper
Cons: Love
Pens: Love 3
Bahrain
Tries: Kenny, Crombie, Tantoh
Cons: Phillips
Pens: Phillips 2
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Day 3 stumps
New Zealand 153 & 249
Pakistan 227 & 37-0 (target 176)
Pakistan require another 139 runs with 10 wickets remaining
