A week of two halves early AI-driven losses and geopolitical friction gave way to a sharp Friday recovery after the Supreme Court struck down sweeping global tariffs, lifting the Nasdaq to its first positive week since January.
However, the full impact of the ruling which may prove more nuanced, plus a divided Fed, sticky core PCE, and emerging private credit liquidity concerns keep the macro outlook unsettled.
Technology stocks endured their worst week in months as investors reassessed AI capital spending returns; however, broader markets demonstrated resilience with a strong late rally pushing the Dow briefly past 50,000 for the first time.
While the US-India trade deal offers a geopolitical reprieve for Indian markets, the macro focus in the US is narrowing on the health of the labor market.
With the January jobs report delayed and layoff announcements surging, markets are increasingly assessing whether the 10th consecutive quarter of earnings growth can resist emerging cracks in the employment.
Markets navigate a volatile backdrop: from divergent U.S. earnings and violent precious‑metal moves to shifting Fed leadership and AI deal dynamics.
Focus shifts to Trump’s surprise pick of Kevin Warsh for Fed Chair, which adds a hawkish tilt to policy expectations.
