Global stock markets steadied on Friday after a tumultuous week marked by the release of a new low-cost Chinese AI model and worries over US tariffs targeting Mexico and Canada. Overnight, Apple’s strong sales forecasts buoyed market sentiment, with European and Wall Street indices showing early gains.
Earlier in the week, technology stocks faced significant losses, including major players like Nvidia and Oracle. However, they regained some ground as leaders from Microsoft and Meta defended their investments in artificial intelligence. Meanwhile, the prospect of US President Trump’s 25% tariffs on Mexico and Canada loomed large, elevating the dollar and impacting gold and currency values.
The market’s complacency over tariff implications was highlighted by experts, who also considered similar risks for Europe. Economic indicators, such as Friday’s anticipated US inflation data, hold potential for adjusting interest rate expectations, following the Federal Reserve’s pause earlier. Meanwhile, central banks in Europe and Japan made notable monetary policy moves, impacting currency performance.
(With inputs from agencies.)