The stock market experienced a pause in its recent rally as chipmakers faced headwinds, following the US announcement of a review of the Economic and Trade Agreement with China. This move has raised concerns about the stability of trade relations, particularly affecting the technology sector, which is sensitive to such geopolitical developments. President Donald Trump's recent comments on economic policies, including potential tax cuts and a softer stance on tariffs, have added to the market's uncertainty, despite his continued threats of sweeping actions.
In response to these developments, Treasury bonds saw a rally, with yields declining as investors sought safer assets amid the geopolitical tensions. The dollar weakened, marking its worst week since November 2023, as lower Treasury yields made US exports more competitive. Meanwhile, oil prices experienced their first weekly drop of the year, influenced by Trump's calls for OPEC to reduce prices, which could have broader implications for global energy markets and inflation expectations.
The S&P 500 Index is currently at 6,101.24 as of 16:13 on January 24, reflecting a slight decline from its last close of 6,118.71. The index opened at 6,121.43, reaching an intraday high of 6,128.18 and a low of 6,088.74, as investors digest the implications of the US-China trade review and other macroeconomic factors.