LGT Navigator

US stocks hit new record highs

US stock indices reached new record highs on Wednesday, despite the Federal Reserve (Fed) taking a cautious stance on inflation and tariffs. Meanwhile, European stocks tumbled sharply, with the Euro Stoxx 50 dropping 1.3% and Germany’s DAX slipping 1.8%, due to tariff concerns and worries about the security situation in Ukraine. Asian markets also declined heavily on Thursday. Geopolitical tensions and tariff headlines continued to drive investors towards safe-haven assets, pushing gold prices to a record high and the yen to its strongest level in over two months on Thursday. Gold's 2025 gains have reached 12%, with central bank demand bolstering its rise. The yellow metal continues to trade around USD 2940 per ounce, near all-time highs.

Date
Author
Shane Strowmatt, LGT
Reading time
5 minutes

Wall Street green light
© Shutterstock

US stock indices reached new record highs on Wednesday, with the S&P 500 rising by 0.2% to 6144.15 points and the Nasdaq 100 increasing slightly by 0.1% to 22,175.60 points. The Dow Jones Industrial Average also gained 0.2% to close at 44,627.59 points but remained below its previous all-time high. Despite these gains, the market moved little overall, unaffected by the latest Fed minutes, which cited concerns by officials regarding inflation and the impact of President Donald Trump's tariffs. The minutes highlighted that the current policy allows time to assess economic conditions and policy shifts from the new administration.

Asia markets decline amid US tariff threats

Asian markets fell on Thursday as investors reacted to US President Donald Trump's proposed tariffs on autos, chips, and pharmaceuticals, which could take effect as early as April. Concerns over the Federal Reserve maintaining higher interest rates for an extended period also weighed on sentiment. Japan’s Nikkei 225 was down 1.3% with 10-year Japanese government bond yields hitting a new 15-year high on Thursday. Korea’s Kospi fell 0.7% after the Producer Price Index showed inflation on wholesale items increased by 1.7% on the year in January. Australia’s S&P/ASX 200 declined 1.2%, despite the country adding more jobs in January than the market had expected. Hong Kong’s Hang Seng Index slipped 1.1%, while mainland China’s CSI 300 was trading essentially flat.

UK inflation jumps to 3% in January

The United Kingdom's inflation rate surged to 3% in January, exceeding market expectations, according to data released by the Office for National Statistics on Wednesday. Core inflation, excluding volatile items, increased to 3.7% from 3.2% in December. The rise was mainly driven by higher costs in transport, food, and non-alcoholic beverages. Despite this, the British pound remained relatively stable against the US dollar.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Alibaba Group Holding, Anglo American, Booking Holdings, Mercedes-Benz Group, NN Group, Schneider Electric, Walmart, and Zurich Insurance. Annual general meetings at Infineon and Siemens Energy.

Economic data in focus: German Producer Price Index (08:00), Swiss trade balance (08:00), Turkish Central Bank interest rate decision (12:00), US weekly initial jobless claims (14:30), Philly Fed Manufacturing Index (14:30), euro-area consumer confidence (16:00).

LGT helps you make informed investment decisions

Global economic and market trends at a glance

You can also follow us on Facebook or LinkedIn – or visit Insights and discover interesting background articles. If you have questions, a consultant from the bank will be happy to help you.

Imprint
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.

Contact us