Market Commentary

The US equity market delivered a robust performance in January, with the S&P 500 posting a 2.7% gain. Sector-wise, consumer discretionary and financials showed strong momentum, while technology stocks struggled under competitive pressures from Chinese tech advances. Nvidia and other key technology firms saw declines amid concerns about losing market share to China’s DeepSeek. Economic indicators painted a mixed picture as job growth slowed, with 143,000 new positions added below expectations, but the unemployment rate edged down to 4%. Inflation data suggested persistent but slightly easing price pressures. Hopes for a potential Federal Reserve pivot toward rate cuts later in 2025 supported market sentiment alongside stronger-than-expected corporate earnings.