U.S. stocks climbed yesterday after additional companies reported end-of-year profits that exceeded analysts’ expectations.
The S&P 500 increased by 0.9%, ending the day at 6,049.24, while the Dow Jones Industrial Average advanced 1.2% to 44,025.81. The Nasdaq Composite also saw gains, rising 0.6% to reach 19,756.78.
Meanwhile, yields on the benchmark 10-year U.S. Treasury notes decreased to 4.56% from 4.62% late on Friday. Notably, both the U.S. stock market and bond trading had been closed on Monday in observance of Martin Luther King Jr. Day.
Asian markets largely extended the global rally as investors cautiously welcomed President Donald Trump’s first full day in office, buoyed by expectations that he might adopt a less aggressive stance on trade than initially feared.
Software investment giant SoftBank surged more than 9%, lifting Tokyo-listed chipmakers in the process. This jump came after the president announced that SoftBank would be part of a new $500 billion (£405 billion) initiative to develop U.S. infrastructure for artificial intelligence.
However, markets in Hong Kong and Shanghai declined after warnings from a notable tycoon, who suggested that China could face new tariffs on February 1 due to its alleged role in sending fentanyl to Mexico and Canada.
Tokyo’s Nikkei 225 emerged as the top performer, while Taipei experienced a significant rise, with chip heavyweight TSMC up more than 2%. Seoul also benefited from substantial gains in SK hynix and LS Electric.
Other markets reporting gains included Sydney, Singapore, Wellington, and Manila, though Hong Kong dropped over one percent following a six-day rally, as renewed tariff concerns dampened investor confidence. Shanghai also suffered considerable losses.
