China’s economy expanded 5% in 2024, meeting Beijing’s official target of “around 5%”. The fourth-quarter gross domestic product grew 5.4%, beating estimates. However, analysts are still hoping for more policies to boost the country’s economy.
The S&P 500 fell on Thursday, snapping its three-day winning streak, while Treasury yields retreated further on waning inflation fears. Asia-Pacific stocks were mixed, with Japan’s Nikkei 225 losing 0.45%. Apple shares slumped 4%, nearly 12% from their peak in December, after falling to third place in smartphones sold in China.
US President-elect Donald Trump’s plan to impose tariffs may threaten retail stocks, according to Wolfe Research. Apple was the worst-performing stock in the “Magnificent 7”, which drove half of the S&P 500’s gains in 2024. Other affected stocks include Tesla, Nvidia, and Alphabet.
Despite a strong start to earnings season, with 77% of companies beating expectations, indexes still struggled. The S&P slipped 0.21%, the Dow Jones lost 0.16%, and the Nasdaq Composite fell 0.89%. However, US Federal Reserve Governor Christopher Waller suggested that rate cuts could happen sooner than expected if inflation data is benign.
If this happens, shares of Apple and other tech stocks could surge again.
Source: https://www.cnbc.com/2025/01/17/cnbc-daily-open-chinas-gdp-meets-official-target.html