United States 

U.S. stocks rose during the week, with the S&P 500 hitting a new record high. Growth stocks outperformed value stocks, and large-cap stocks generally performed better than smaller ones. The S&P 500 gained 0.5% during the last session, pushing its 2025 year-to-date performance to +3.48%, the strongest start to a year since 2019. The Dow Jones Industrial Average climbed 0.9%, while the Nasdaq Composite added 0.2%.

The tech sector led the rally, with notable gains from Netflix (+9.69%) and Nvidia (+4.43%). AI-related stocks also saw strong momentum following President Trump's announcement of a $500 billion AI investment partnership involving Softbank, OpenAI, Oracle, and MGX. Oracle surged 6.75%, while Microsoft rose 4.13%.

President Trump’s inaugural actions dominated headlines, including his support for tax cuts and deregulation. While no immediate tariffs were imposed, Trump suggested a review of U.S. trade policies and raised the possibility of tariffs on Canada and Mexico. However, his decision to avoid tariffs on China sparked hopes for a potential trade deal.

U.S. Treasury yields moved higher, with the 10-year yield increasing to 4.61%. Growing doubts about the Federal Reserve’s potential rate cuts and renewed fiscal concerns contributed to this movement. Meanwhile, oil futures fell to their lowest in two weeks after President Trump announced plans to pressure Saudi Arabia and OPEC to lower prices.

United Kingdom

The FTSE 100 dropped 0.7% on Friday, closing at 8,502.35, as the British pound strengthened to its highest level in over two weeks, nearing $1.25. Positive UK economic data and expectations of a softer U.S. trade policy boosted the pound but pressured the FTSE. For the week, the FTSE 100 remained nearly unchanged, while the FTSE 250 declined by 0.4%.

In the UK labor market, wage growth excluding bonuses rose to 6.0% for the three months through November, but the unemployment rate unexpectedly increased to 4.4%. A decline in the number of payroll employees and fewer job openings signaled potential challenges ahead.

Europe

European markets rallied as the STOXX Europe 600 Index rose 1.23% amid optimism about potential rate cuts from the European Central Bank (ECB). Major indexes such as France’s CAC 40 (+2.83%) and Germany’s DAX (+2.35%) posted gains, while Italy’s FTSE MIB fell slightly by 0.18%.

ECB officials hinted at another interest rate cut at their January 30 meeting. President Christine Lagarde noted the need for a gradual approach, while other ECB members supported cuts as inflation trends toward the 2% target.

Japan

Japan’s core consumer inflation surged to 3.0% in December, the fastest pace in 16 months, driven by rising fuel and food prices. The Bank of Japan raised its short-term policy rate to 0.5%, marking its first hike since the 2008 financial crisis and the highest level in 17 years. Governor Kazuo Ueda signaled further hikes may follow if wage growth supports consumer spending and inflationary pressures persist.