Trump cheers on towards 100,000! Will the Dow continue its surge after breaking through 50,000 point

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Weekly Financial Express: US major indexes all rose, Dow breaks 50,000 for the first time! China’s foreign exchange reserves hit over a decade high

Last week, US technology stocks rebounded strongly after falling due to panic sentiment. The Dow Jones Industrial Average broke through the 50,000-point mark for the first time, and all three major US stock indexes closed higher. Meanwhile, China's foreign exchange reserves have risen to a more than 10-year high, with the central bank increasing its gold reserves for 15 consecutive months. In Japan, the results of the House of Representatives election were announced, with the ruling coalition securing more than half of the seats. Canada has introduced a new electric vehicle strategy. What market logic is hidden behind these global events? Let us further observe and discuss.

Content compiled by the 'Harbor Family Office' under Henry Group. It does not constitute any investment or trading advice. Stay tuned.

Hotspot Focus >>>

– President of the Federal Reserve Bank of San Francisco says fragile labor market may require one or two more interest rate cuts

Last week, Mary Daly, President of the Federal Reserve Bank of San Francisco, stated that she believes one or two more interest rate cuts may be necessary to address the weak labor market. Rising prices and scarce new job opportunities are making life difficult for workers.

– China's foreign exchange reserve scale rises to over a decade high as central bank increases gold holdings for 15th straight month

China’s foreign exchange reserves increased by over $41 billion in January, bringing the total to nearly $3.4 trillion, the highest level in over a decade. The People's Bank of China has been adding to its gold reserves for 15 consecutive months, with the value of gold holdings reaching approximately $370 billion, setting a new record high.

– Results of Japan’s House of Representatives election show ruling coalition secures majority of seats

In the House of Representatives election held on February 8 local time, the ruling coalition comprising the Liberal Democratic Party and Japan Innovation Party won over half of the 465 seats, with the LDP securing 316 seats and the Japan Innovation Party obtaining 36 seats. This election, taking place just 16 days after the dissolution of the House of Representatives on January 23, marks the shortest interval between dissolution and voting since the end of World War II.

– Canada announces new electric vehicle strategy

On February 5 local time, Canadian Prime Minister Mark Carney announced a new electric vehicle strategy, including the reintroduction of purchase subsidies, and expressed plans to cooperate with China to promote the production and export of electric vehicles in Canada. According to a statement released by the Prime Minister’s Office, Canada will make full use of existing and new trade agreements, including the recent electric vehicle cooperation agreement reached with China, to drive the development of related industries and enhance its competitiveness in the global electric vehicle industry.

– South Korean cryptocurrency exchange mistakenly distributed 620,000 Bitcoin

On February 7 local time, South Korean cryptocurrency exchange Bithumb issued an announcement stating that during a promotional rewards distribution, an operational error occurred where they mistakenly distributed 620,000 Korean won as 620,000 Bitcoin, worth over 44 billion US dollars at the time. Bithumb has since apologized and stated that the majority of the erroneously distributed assets have been recovered.

Stock market >>>

– US Market: Strong rebound in US stocks, all three major indices closed higher

After US technology stocks fell last week due to panic sentiment, substantial capital flowed back into US equities on Friday to purchase technology stocks and other shares whose prices had dropped. Coupled with the US consumer confidence index rising to its highest level in nearly half a year, this eased concerns about the US employment situation to a certain extent. Due to these multiple factors, US stocks experienced a strong rebound, with all three major indices advancing. The Dow Jones Industrial Average surpassed the 50,000-point mark for the first time, and the S&P 500 Index, which reflects the performance of large US companies, rose by nearly 2%.

As of Friday's close, the Dow Jones Industrial Average rose 2.47% to 50,115.67 points; the S&P 500 Index gained 1.97% to 6,932.30 points; and the Nasdaq Composite Index climbed 2.18% to 23,031.213 points. In terms of sector indices, the chip sector, which had just suffered a major decline, surged by 5.3%, while the AI robotics sector rose over 4.5%.

The Mag 7 index closed up 1.02% on Friday, with NVIDIA gaining 7.87%, Tesla rising 3.50%, Microsoft up 1.90%, Google A dropping more than 2.5%, and Amazon falling 5.55%. The Nasdaq Golden Dragon China Index rose 3.71% to 7,808.54 points, turning positive on the week. Pony AI increased by 9.4%, new energy vehicle makers Nio and Li Auto gained over 6.5%, Xpeng and BYD rose over 4%, Alibaba closed up about 3%, and Tencent gained 2.2%.

– European Market: European stocks mostly closed higher on Friday, with the pan-European index up 1% for the week

European stock markets mostly closed higher on Friday, with the pan-European index rising 1% for the week. The pan-European STOXX 600 Index rose 0.89% to 617.12 points, accumulating a 1.00% gain for the week; the telecommunications index rose 6.16%, while the food and beverage index gained 6.20%. The pan-European STOXX 50 Index rose 1.23% to 5,998.40 points, accumulating a 0.85% increase for the week.

Germany’s DAX Index rose 0.94% to 24,721.46 points, accumulating a 0.74% gain for the week; the UK FTSE 100 Index gained 0.59% to 10,369.75 points, rising 1.43% for the week; and France’s CAC40 Index climbed 0.43% to 8,273.84 points, accumulating a 1.81% increase for the week.

– Asia-Pacific Market: Major Asia-Pacific stock markets showed mixed performance on Friday, generally opening lower but narrowing losses

Last Friday, the major stock markets in the Asia-Pacific region were initially hit by a global market turmoil triggered by the selloff in US chip and technology stocks, causing declines. However, as panic subsided during the session, the Asia-Pacific markets ended mixed. By the close, the Nikkei 225 Index rose 0.81% to 54,253.68 points, and the Tokyo Stock Price Index gained 1.28% to 3,699.00 points. The KOSPI Index fell 1.44% to 5,089.14 points. In other key indices, the Singapore Straits Index dropped 0.83% to 4,934.41 points, the Thailand SET Index increased 0.58% to 1,354.01 points, and the Australia S&P/ASX200 Index fell 2.03% to 8,708.80 points.

– Hong Kong stocks: All three major indices declined, with the Hang Seng Tech Index falling about 20% from its 2025 peak

Last Friday, all three major Hong Kong stock indices closed lower, with the Hang Seng Tech Index dropping more than 1.1%, representing an approximately 20% decline from its October 2025 high. By the close, the Hang Seng Index fell 1.21% to 26,559.95 points, the Hang Seng Tech Index dropped 1.11% to 5,346.2 points, and the Hang Seng China Enterprises Index declined 0.68% to 9,031.38 points. Sector-wise, new energy vehicle stocks performed strongly, with Li Auto up 3.61%, Nio rising nearly 7%, and Leapmotor gaining nearly 6%. Technology stocks generally declined, Alibaba fell 2.88%, Meituan dropped over 2.5%, while Baidu and NetEase both slid over 2%.

– A-share Market: All three major indices closed lower last Friday

The A-share market opened weakly due to Thursday's volatility in US stocks, with the three major indices once falling more than 1%. They then quickly rebounded to narrow losses. By the close, the Shanghai Composite Index fell 0.25% to 4,065.58 points, the Shenzhen Component Index dropped 0.33% to 13,906.73 points, and the ChiNext Index fell 0.73% to 3,236.46 points. Sector-wise, chemical stocks stood out, with Cangzhou Dahua and JinNiu Chemical ending limit-up. Oil and gas stocks strengthened, with Continental Oil and Gas opening limit-down but closing limit-up. Robotic concept stocks were active, with Wuzhou Xinchun and Liancheng Precision both ending limit-up. Retail, tourism, aerospace, and liquor sectors saw significant declines.

Bonds >>>

– US Treasuries: Yields on US Treasuries rose last Friday; the 10-year Treasury yield fell 2.95 basis points for the week

Last Friday, yields on US Treasuries rose but failed to fully recover the early-week losses. At the New York close, the two-year Treasury yield was up 4.71 basis points to 3.4976%, with a cumulative weekly drop of 2.49 basis points. The 10-year Treasury yield rose 2.59 basis points to 4.2060%, with a cumulative weekly fall of 2.95 basis points.

– Non-US bond markets: Yields on Eurozone government bonds generally rose last Friday

Yields on 10-year Eurozone government bonds overall increased last week. By the European market close last Friday, the 10-year German government bond yield remained largely unchanged from the previous trading day at 2.842%, with a cumulative weekly decline of 0.1 basis points. The 10-year French government bond yield rose 2.2 basis points, and the Italian 10-year government bond yield increased 1.0 basis point.

– Government Bonds: Chinese government bonds closed generally higher last Friday

Last Friday, government bond futures closed generally higher. By the close, the 30-year main contract rose by 0.42%, the 10-year main contract increased by 0.08%, the 5-year main contract was up by 0.03%, and the 2-year main contract gained 0.02%.

Foreign exchange >>>

– US Dollar: The ICE US Dollar Index fell by 0.21% to 97.623 points, with a cumulative weekly increase of 0.65%

The US dollar declined on Friday but finished the week higher overall. As of the end of foreign exchange trading on Friday, the ICE US Dollar Index fell by 0.21% to 97.623 points, with a cumulative weekly gain of 0.65%; the Bloomberg US Dollar Index dropped by 0.36% to 1,190.76 points, with a cumulative weekly rise of 0.20%.

– Non-US currencies: The US dollar generally fell against major currencies last Friday, remaining nearly flat against the Japanese yen compared to the previous trading day level

The US dollar generally fell against major currencies last Friday, with little change in its exchange rate against the Japanese yen compared to the previous trading day. By the end of foreign exchange trading on Friday, the US dollar was nearly flat against the Japanese yen, at 157.1 yen; the euro rose by 0.37% against the US dollar to 1.1822 dollars; the British pound rose by 0.62% against the US dollar to 1.3614 dollars; and the Australian dollar surged by 1.29% against the US dollar.

– Chinese Yuan: The US dollar closed at 6.9301 yuan against the offshore Chinese yuan last Friday

By the end of trading in New York last Friday, the US dollar stood at 6.9301 yuan against the offshore Chinese yuan, an increase of 104 points from the previous trading day (Thursday); the onshore yuan stood at 6.9401 yuan against the US dollar, a rise of 7 points from the previous trading day.

– Cryptocurrencies: The cryptocurrency market rebounded strongly last Friday, with Bitcoin prices rising about 11%

The cryptocurrency market rebounded last Friday after experiencing consecutive days of declines. Bitcoin rose by approximately 11.5%, while Ethereum surged about 11% last Friday.

Products >>>

– Energy: Oil prices rose last Friday

Oil prices rose last Friday as the market continued to focus on geopolitical uncertainties in the Middle East. Brent crude oil futures settled at $68.05 per barrel, up approximately 0.74%. US crude oil futures settled at $63.55 per barrel, rising about 0.41%.

– Precious Metals: Precious metals collectively rebounded last Friday, with overall price movements initially falling before recovering.

Gold:Precious metal prices initially fell but then recovered, with gold reclaiming losses from last week. In New York trading, spot gold rose 3.78% to close at $4,960.64 per ounce, gaining 1.37% for the week; US gold futures climbed 1.96% to settle at $4,985.10 per ounce, surging 5.05% for the week.

Metal Futures Market:Spot silver prices dropped nearly 10% at one point but then surged about 20% from the intraday low, closing at $77.8825 per ounce, down approximately 8.5% for the week; US silver futures rose 10.19% to settle at $77.790 per ounce, down around 1.1% for the week. US copper futures climbed 1.14% last Friday to $5.8875 per pound, declining roughly 0.6% for the week; spot platinum rose 5.66% last Friday, down about 4.2% for the week; spot palladium increased by about 2.7% last Friday, down roughly 0.6% for the week.

[Disclaimer]

The content above is provided by Harbor Family Office (hereinafter referred to as "Harbor Family Office"), sourced from market information gathered from various channels. Neither Harbor Family Office nor its group members participated in preparing the content, nor did they explicitly or implicitly endorse or approve it. This article is for reference only and does not constitute any investment or trading advice. Investment involves risks. Readers should independently evaluate and judge this information and are advised to consult professionals before making any investment or trading decisions. Without authorization, no one may reproduce, copy, or publish the content in whole or in part to the public in any manner. Copyright belongs to Harbor Family Office and relevant providers.

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