MARKET RECAP

• Trump was inaugurated, and markets rallied. The SPX was up 1.74% and hit its first record high of 2025 on Thursday.
• Trump launched a crypto coin in his name and then one for the first lady, indicating that traditional ethics don’t matter. But who would expect otherwise?
• Trump held off closing down TikTok for 75 days and issued pardons to all of the January 6th rioters, even the most violent ones.
• Trump announced a $500 billion infrastructure investment by OpenAI, Oracle, Softbank, and a UAE-based company.
• At a virtual address at the World Economic Forum, Trump said “I’ll demand that interest rates drop immediately.” Trump is also going to press OPEC to cut prices.
• Bitcoin hit a record of 109,000 on Monday but has since fallen back to 101,000.
• There were no immediate tariffs on day one, so that helped markets. But indicated that may change on February 1 in regards to Mexico and Canada.
• The SPX earnings yield is 4.1% versus a 10-year yield of 4.63%,the biggest disparity since 2002.

SCOREBOARD

MARKET RECAP

• US stocks had a big rally, with the S&P 500 up by 2.9% and small caps advancing by 3.96%.
• The recent slide in prices reversed when inflation data came in better than expected and bank earnings were strong.
• The yield on the 10-year declined by 16 basis points.
• On the negative side, mortgage rates broke above 7% for the first time since mid-2024

SCOREBOARD

MARKET RECAP

•  SPX -1.94%, Russell 2000 -3.49%.
• Rising interest rates are beginning to cause problems. In addition, fear to the reality of tariffs are increasing inflation expectations.
• Strong jobs growth, +256k. But wage growth of 3.9% was considered mild.
• The 10-year yield is at 4.77%, +17 basis points.

SCOREBOARD

SCOREBOARD