US stocks jumped 2.5 percent on Friday, joining a global rally after surprise stimulus measures by the Bank of Japan (BOJ) raised confidence of further central bank moves to boost growth.
The Dow Jones Industrial Average gained 396.66 points (2.47 percent) to close at 16,466.30. The broad-based S&P 500 advanced 46.88 (2.48 percent) to 1,940.24, while the tech-rich NASDAQ Composite Index rose 107.28 (2.38 percent) to close at 4,613.95.
The Bank of Japan adopted a below-zero-interest-rate policy, essentially charging lenders to park their cash with it. The move helped spur stocks higher in Europe and Asia.
Stocks picked up further momentum following government data showing the US economy grew an anemic 0.7 percent in the fourth quarter.
Analysts said the weak growth reduced the chances the US Federal Reserve would move quickly to increase interest rates again.
“This basically sets the tone that central banks are going to have to boost the economy,” First Standard Financial chief market economist Peter Cardillo said.
Stocks were also bolstered by crude oil prices, which rose for the fourth day in a row. The gain lifted petroleum-linked stocks, including Marathon Oil Corp and Halliburton Co, which jumped 6.1 percent and 4.4 percent respectively.
Chevron Corp rose a more modest 0.6 percent after reporting a surprise loss for the fourth quarter due to the slump in crude oil prices. Chevron lost US$588 million compared with net income of US$3.5 billion the previous year.
Amazon.com sank 7.6 percent after it reported fourth-quarter profits of US$482 million, up from US$214 million the previous year behind a 22 percent rise in revenue.
Some analysts expressed worry about an outlook that included a projection for first-quarter operating income of US$100 to US$700 million, but some other large technology shares rose.
Apple Inc and Intel Corp both surged 3.5 percent, while Cisco Systems advanced 3 percent.
Microsoft Corp jumped 5.8 percent after reporting fourth-quarter net income of US$5.8 billion in better-than-expected results that showed growth in its cloud-computing business.
Banking shares enjoyed a good session, with Citigroup Inc gaining 5.4 percent, JPMorgan Chase & Co 3.9 percent and Bank of America Corp 4.5 percent.
Visa Inc powered 7.4 percent higher on better-than-expected earnings, while Mastercard Inc gained 6.7 percent after also beating analysts’ estimates.
TECH PARTNERSHIP: The deal with Arizona-based Amkor would provide TSMC with advanced packing and test capacities, a requirement to serve US customers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is collaborating with Amkor Technology Inc to provide local advanced packaging and test capacities in Arizona to address customer requirements for geographical flexibility in chip manufacturing. As part of the agreement, TSMC, the world’s biggest contract chipmaker, would contract turnkey advanced packaging and test services from Amkor at their planned facility in Peoria, Arizona, a joint statement released yesterday said. TSMC would leverage these services to support its customers, particularly those using TSMC’s advanced wafer fabrication facilities in Phoenix, Arizona, it said. The companies would jointly define the specific packaging technologies, such as TSMC’s Integrated
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Sales RecORD: Hon Hai’s consolidated sales rose by about 20 percent last quarter, while Largan, another Apple supplier, saw quarterly sales increase by 17 percent IPhone assembler Hon Hai Precision Industry Co (鴻海精密) on Saturday reported its highest-ever quarterly sales for the third quarter on the back of solid global demand for artificial intelligence (AI) servers. Hon Hai, also known as Foxconn Technology Group (富士康科技集團) globally, said it posted NT$1.85 trillion (US$57.93 billion) in consolidated sales in the July-to-September quarter, up 19.46 percent from the previous quarter and up 20.15 percent from a year earlier. The figure beat the previous third-quarter high of NT$1.74 trillion recorded in 2022, company data showed. Due to rising demand for AI, Hon Hai said its cloud and networking division enjoyed strong sales
Protectionism: US trade chief Katherine Tai said the hikes would help to counter unfair trade practices from China, while boosting domestic clean energy investments US Trade Representative Katherine Tai (戴琪) defended stiff tariff hikes against countries such as China, saying that paired with investment, they were a “legitimate and constructive” tool for reinvigorating domestic industries. Tai’s comments come a week after sharp tariff increases on Chinese electric vehicles (EVs), EV batteries and solar cells took effect — with levies down the line on other products also recently finalized. The latest moves targeting US$18 billion in Chinese goods come weeks before next month’s US presidential election, with Democrats and Republicans pushing a hard line on China as competition between Washington and Beijing intensifies. In an interview on Thursday
RSS