Market Commentary - Foreign Markets
27-Feb-2025 09:38
Stock Market Sees Mixed Performance Amid Strong AI and Semiconductor Stocks
The AI darling and market leader pulled back off its best levels but closed up by 3.7% ahead of the release of its fourth quarter financial results. The Commerce Department released a report showing a substantial pullback by new home sales in the U.S. in the month of January. new home sales plunged by 10.5% to an annual rate of 657,000 in January after spiking by 8.1% to an upwardly revised rate of 734,000 in December.
Networking stocks were substantially strong, with the NYSE Arca Networking Index surging by 2.8%. semiconductor stocks were significantly strong, as reflected by the 2.1% jump by the Philadelphia Semiconductor Index. Computer hardware, gold and brokerage stocks too were notably strong while housing stocks came under pressure over the course of the session.
Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index fell by 0.3% while China's Shanghai Composite Index jumped by 1% and Hong Kong's Hang Seng Index spiked by 3.3%. The major European markets all moved to the upside on the day while the German DAX Index shot up by 1.6%, the French CAC 40 Index surged by 1.2% and the U.K.'s FTSE 100 Index climbed by 0.7%.
In the bond market, treasuries moved higher over the course of the session, adding to recent gains. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 4.9 bps to a new two-month closing low of 4.24%.
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