Wall Street continued its upward momentum on Thursday, with the S&P 500 logging its third consecutive gain as investors evaluated a fresh round of corporate earnings and central bank decisions. While the Nasdaq also posted modest gains, the Dow Jones Industrial Average edged lower, weighed down by declines in key stocks such as Ford and Honeywell. European markets surged to record highs, boosted by a rate cut from the Bank of England, while Asian markets largely shrugged off trade tensions and disappointing US tech earnings. Meanwhile, investor sentiment remained cautious ahead of Friday’s critical US jobs report, with Treasury yields rising and oil prices dipping amid fresh supply concerns.
- S&P 500 Extends Winning Streak: The S&P 500 gained 0.36%, closing at 6,083.57, marking its third consecutive session of gains. The broad market index continued to rise as investors assessed a new round of corporate earnings.?
- Dow Jones Declines Over 125 Points: The Dow Jones Industrial Average fell 125.65 points, or 0.28%, to settle at 44,747.63. The decline was driven by sharp losses in Honeywell (-5%) and Ford (-7%), both of which faced investor scrutiny following weaker-than-expected guidance.?
- Nasdaq Rises as Tech Stocks Lead Gains: The Nasdaq Composite climbed 0.51%, closing at 19,791.99, extending its upward momentum. The index benefited from gains in select technology stocks, though semiconductor names struggled.?
- European Markets Surge to Record Highs as Bank of England Cuts Rates: European equities soared after the Bank of England (BoE) cut its benchmark interest rate by 25 basis points to 4.5%, marking its first reduction of the year. The Stoxx 600 gained 1.26%, erasing losses from prior trade-related volatility, while the FTSE 100 jumped 1.3% (103.99 points) to hit a record high. France’s CAC 40 added 1.47% (116 points), Germany’s DAX rose 1.47% (316 points), and Italy’s FTSE MIB climbed 1.48% (540 points). The BoE’s decision was seen as a dovish move, with all nine policymakers voting for a cut and two advocating for an even larger 50-basis-point reduction, signalling further easing ahead. The central bank also slashed its 2025 growth forecast to 0.75% from 1.5%, citing economic weakness. Meanwhile, Germany’s industrial sector provided an unexpected boost to economic sentiment, with industrial orders surging 6.9% in December, far exceeding expectations.?
- Asia-Pacific Markets Rally Despite Trade Uncertainty: Asian stocks closed mostly higher, mirroring Wall Street’s gains, as investors brushed off lingering concerns over US trade policy. Japan’s Nikkei 225 rose 0.61% to 39,066.53, while the Topix added 0.25% to 2,742.2. South Korea’s Kospi gained 1.1% to 2,536.75, while the Kosdaq advanced 1.28% to 740.32. Hong Kong’s Hang Seng Index climbed 1.04%, while China’s CSI 300 added 1.26% to 3,842.83. Australia’s S&P/ASX 200 jumped 1.23% to 8,520.7. However, Indian markets bucked the trend, with the Nifty 50 down 0.48% and the BSE Sensex slipping 0.43%, as investors awaited a key interest rate decision from the Reserve Bank of India.
- US Jobless Claims Edge Higher as Labour Market Remains Resilient: The latest US labour data signalled a modest uptick in jobless claims, with weekly initial unemployment filings rising by 11,000 to 219,000 for the week ending February 1. While this exceeded the 213,000 forecast by economists, it remains within a range consistent with a gradually cooling labour market. Investors are now keenly awaiting Friday’s January nonfarm payrolls report, expected to show 169,000 job additions, down from 256,000 in December.
- US Treasury Yields Rise Ahead of Jobs Data: Treasury yields edged higher as investors positioned ahead of key employment data. The 10-year US Treasury yield rose nearly 2 basis points to 4.438%, while the 2-year Treasury yield climbed more than 2 basis points to 4.212%.?
- Oil Prices Dip as Trump Pledges to Boost US Production: Crude oil prices declined on Thursday amid renewed concerns over supply. Brent crude futures slipped 33 cents (0.44%) to $74.28 per barrel, while West Texas Intermediate (WTI) crude fell 49 cents (0.75%) to $70.53 per barrel. The drop followed a statement from President Donald Trump, who reiterated his commitment to increasing US oil output in an effort to lower energy prices. Despite the decline, losses were contained by fresh US sanctions on Iranian crude, which kept supply concerns in focus.
- EUR/USD Struggles Below 1.0400 Amidst Market Uncertainty: The EUR/USD pair edged lower on Thursday, closing at 1.0384, down 0.17% as the euro failed to hold above the key 1.0400 level. The pair remains within a broader downtrend after failing to reclaim the 50-day moving average at 1.0411. A move below 1.0350 would likely lead to another test of 1.0300, where buyers previously provided support. If EUR/USD manages to stay above 1.0350, another attempt toward 1.0450 could be on the horizon. A break above this level would shift momentum in favour of buyers, targeting 1.0500 next.?
- GBP/USD Declines as BoE Rate Cut Sparks Selloff: The British pound slumped against the US dollar after the Bank of England unanimously voted to cut interest rates by 25 basis points to 4.5%. GBP/USD tumbled below 1.2400, hitting a daily low of 1.2359 before settling at 1.2437, down 0.54% from the previous session. The pair failed to break above the 50-day moving average at 1.2502, reinforcing this level as key resistance. If GBP/USD continues to decline, the next support lies at 1.2400, followed by last week's low of 1.2360. A move above 1.2500 would be required to shift momentum in favour of buyers, with the next upside target at 1.2600.?
- USD/JPY Breaks Below 152.00, Extends Selloff: The USD/JPY pair continued its downward trajectory on Thursday, sliding 0.72% to 151.49, marking its second consecutive session of sharp losses. The pair has now fallen below the 100-day moving average at 152.50, confirming increased downside pressure. The next key support level lies at 151.00, a region last tested in December. If this level fails to hold, a further decline toward 150.00 is likely. On the upside, any recovery would need to break back above 152.00 to shift momentum. A move above 152.50 could see USD/JPY retesting the 50-day moving average at 154.78, where selling pressure previously emerged.?
- USD/CHF Rebounds but Lacks Momentum: The USD/CHF pair edged higher on Thursday, gaining 0.34% to trade at 0.9048 as the pair found support near the 50-day moving average at 0.8998. Despite today’s recovery, USD/CHF remains within a corrective phase after failing to hold above 0.9150 last week. If buyers sustain momentum above 0.9050, the next upside target is 0.9100, where resistance has been seen in recent sessions. However, failure to hold above 0.9000 could see another test of the 100-day moving average at 0.8825. A break below this level would open the door for further losses toward 0.8800, aligning with the 200-day moving average.?
- Gold Retreats as US Yields Climb Ahead of Jobs Data: Gold prices saw their first decline in over a week on Thursday as US Treasury yields rebounded ahead of the highly anticipated nonfarm payrolls report. Gold slipped 0.40% to settle at 2,854, after reaching an intraday high of 2,873 before facing selling pressure. Despite the pullback, the metal remains well above its 50-day moving average at 2,686, indicating that the broader uptrend remains intact. Strong support lies near 2,830, while a further decline could test the key psychological level of 2,800. If buyers step in at current levels, gold could attempt another push toward 2,880, followed by the next resistance at 2,900. A decisive break above 2,900 would likely open the door for a test of 3,000.00. However, failure to hold above 2,830 could accelerate selling pressure, with the 100-day moving average at 2,676.93 providing additional downside protection.?
- Altus Power Surges on $2.2 Billion Buyout Deal: Shares of Altus Power skyrocketed 27% after the commercial solar power provider agreed to a $5 per share buyout from a unit of TPG, valuing the company at $2.2 billion, including debt.?
- Ford Slumps on Weak 2025 Outlook: Ford shares plummeted 7%, reaching their lowest level in four years, after the automaker issued a soft 2025 guidance. Management cited "headwinds related to market factors" as a primary concern.?
- Honeywell Drops 6% After Announcing Three-Way Split: Honeywell shares tumbled 6% after the industrial conglomerate announced plans to split into three independent companies. The stock decline weighed heavily on the Dow Jones Industrial Average, contributing to the index's losses for the day.
- Roblox Tanks 11% as Quarterly Results Disappoint: Video game company Roblox slumped 11% after missing fourth-quarter estimates on multiple fronts. The company reported $1.36 billion in bookings, falling short of the $1.37 billion expected by analysts.?
- Qualcomm Falls 4% as Analysts Warn of Growth Headwinds: Chipmaker Qualcomm declined 4% despite fiscal first-quarter earnings per share of $3.41, which beat analysts' estimates of $2.96. Revenue came in at $11.67 billion, above the expected $10.93 billion, according to LSEG. However, Wall Street analysts flagged growth challenges ahead, weighing on the stock.
As markets head into the final trading session of the week, investor sentiment remains mixed, with the S&P 500 extending its winning streak while the Dow faced pressure from declines in key stocks such as Honeywell and Ford. European markets surged to record highs following a dovish rate cut from the Bank of England, while Asia-Pacific markets shrugged off trade tensions to post broad gains. In the US, jobless claims ticked higher, and Treasury yields rose ahead of Friday’s closely watched nonfarm payrolls report, which is expected to provide further clarity on labour market conditions and the Federal Reserve’s policy outlook.?
