What Happened Last Week

The S&P 500 Index fell 1.00 percent, the Nasdaq Composite Index fell 1.64 percent, and the Dow Jones Industrial Average gained 0.27 percent.^1,2

A Volatile End To January

The week started on a down note with news that a Chinese artificial intelligence (AI) startup had made a breakthrough, which put pressure on a wide range of tech stocks. The tech-heavy Nasdaq fell 3 percent for the day, but the Dow Industrials ended the trading session slightly higher.³

Stocks were under pressure again mid-week as investors waited on news from the Federal Reserve. The Fed voted to hold firm on short-term interest rates. Even though the decision was widely expected, markets were under pressure again after the Wednesday afternoon announcement.⁴

Stocks rallied Thursday but reversed course Friday afternoon as traders adopted a more “risk-averse” position going into the weekend. There was a bit of anxiety knowing that the new administration’s tariffs on Mexico and Canada were scheduled to take effect on Saturday.

Interestingly, it was the Dow Industrial’s fourth-straight week outperforming both the S&P and the Nasdaq.⁵

DeepSeek Suprise

The markets were caught off guard by Monday’s news related to the success of a new AI startup based in China.⁶

What unsettled investors was the company’s claim that it developed a competitive AI model that performs as well as its Western counterparts at a fraction of the cost. As the week progressed, markets started to process the news and began to evaluate whether it was truly a “black swan” event or just another development in the fast-moving world of AI.⁶

Economic Data To Watch

Monday:  ISM Manufacturing. Construction Spending.

Tuesday:  Motor Vehicle Sales.

Wednesday:  ADP Employment Report. Factory Orders. ISM Services Index. Beige Book.

Thursday:  Jobless Claims. International Trade in Goods and Services. Productivity and Costs.

Friday:  Employment Situation.

^{Source: Investors Business Daily - Econoday economic calendar; January 30, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

Upcoming Earnings Reports

Monday:  Palantir Technologies Inc. (PLTR)

Tuesday:  Alphabet Inc. (GOOG, GOOGL), Merck & Co., Inc. (MRK), PepsiCo., Inc. (PEP), Advanced Micro Devices, Inc. (AMD), Pfizer Inc. (PFE), Amgen, Inc. (AMGN), KKR & Co. Inc. (KKR), Spotify Technology (SPOT)

Wednesday:  The Walt Disney Company (DIS), Qualcomm Incorporated (QCOM), Boston Scientific Corporation (BSX), Uber Technologies, Inc. (UBER), Fiserv, Inc. (FI)

Thursday:  Amazon.com, Inc. (AMZN), Eli Lilly and Company (LLY), Philip Morris International Inc. (PM), Honeywell International Inc. (HON), Bristol Myers Squibb Company (BMY), ConocoPhillips (COP)

^{Source: Zacks, January 30, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

Footnotes and Sources

^{1. The Wall Street Journal, January 31, 2025}

^{2. Investing.com, January 31, 2025}

^{3. CNBC.com, January 27, 2025}

^{4. The Wall Street Journal, January 29, 2025}

^{5. CNBC.com, January 30, 2025}

^{6. CNBC.com, January 30, 2025}

^{Source: YCharts.com, February 1, 2025. Weekly performance is measured from Monday, January 27, to Friday, January 31. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.}