On Wall Street, stock indices fell on Thursday, losing part of the gains from the previous day, primarily due to the decline in stock prices in the technology sector. Dow Jones weakened by 0.16 percent, to 43,153 points, while S&P 500 slid 0.21 percent, to 5,937 points, and Nasdaq index fell 0.89 percent, to 19,338 points.
The decline in the indices is mainly due to pressure on the technology sector. The price of Apple shares fell the most, by about 4 percent, following news of a sharp decline in iPhone sales in China. Other tech giants, such as Tesla, Nvidia, and Alphabet, also saw their stock prices decline slightly. On the other hand, stock prices in the banking sector rose the most as several of the largest American banks reported better-than-expected quarterly results.
Investors were also focused on new economic data showing that American consumer spending remains strong and that the labor market is still robust. This opens up space for the American central bank to slow the pace of interest rate cuts.
The day before, stock prices rose sharply as a slight easing of inflation in the U.S. revived speculation about interest rate cuts. The market estimates that the Fed could reduce rates at its meeting in June. Until then, analysts say, central bank leaders will monitor the impact of Donald Trump’s policies, who will take over the White House next week, on the economy and inflation.
Meanwhile, European stock prices rose yesterday. The London FTSE index strengthened by 1.09 percent, to 8,391 points, while the Frankfurt DAX rose by 0.39 percent, to 20,655 points, and the Paris CAC by 2.14 percent, to 7,634 points.
Asian Investors Cautious, Focusing on Chinese GDP
On Asian markets, trading was cautious on Friday, with stock prices on Chinese exchanges rising slightly after it was announced that the Chinese economy grew last year in line with government estimates. MSCI Asia-Pacific index was down 0.2 percent at 7:00 AM. The Japanese Nikkei index weakened by 0.4 percent, while stock prices in Australia and South Korea fell between 0.2 and 0.3 percent. In Shanghai and Hong Kong, prices rose by about 0.3 percent.
The slight rise in Chinese markets followed the announcement that the country’s gross domestic product in the last quarter of last year grew by 5.4 percent year-on-year, more than expected. Thus, the targeted growth of Chinese authorities of 5 percent was achieved for the entire last year.
Dollar Weakens, Oil Prices Rise
On the currency markets, the value of the dollar against a basket of currencies slightly fell for the fourth consecutive day, heading for its first weekly loss after six weeks of growth. The dollar index, which shows the value of the U.S. dollar against the other six major world currencies, is around 108.94 points this morning, while it was 109.02 points yesterday at this time.
The dollar’s exchange rate against the Japanese currency slipped from yesterday’s 156.05 to 155.55 yen. The American currency also weakened against the European one, with the euro price reaching 1.0295 dollars, while it was 1.0285 dollars yesterday at this time.
Oil prices, on the other hand, recovered some of yesterday’s losses. The price of a barrel on the London market strengthened by 0.58 percent, to 81.75 dollars, while on the American market, a barrel rose by 0.80 percent, to 79.30 dollars.
