Under the New York Stock Exchange during morning trading on January 22, 2025.
Michael M. Santiago | Getty Images
This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open informs investors about everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Intraday record for S&P 500
the US market popped up on wednesday. The S&P 500 touched a new intraday high, although it pulled back after the closing bell. Asia-Pacific shares were mixed on Thursday. China’s CSI 300 advanced roughly 1%, leading the rise in the region, as authorities forced of state funds and insurers for the purchase of shares. South Korea Kospi index retreated by 0.8% following the release of disappointing gross domestic product data.
South Korea’s GDP exceeds expectations
South Korea’s economy grew by 1.2% year-on-year in the fourth quarter, according to previous data. That missed the 1.4% expected in a Reuters poll and was lower than the country’s 1.5% growth in the third quarter of 2024. However, full-year GDP growth was 2%, higher than growth from 1.4% in 2023.
SK Hynix’s operating profit jumps more than 2,000%
Shares in SK Hynix, one of the world’s largest memory chip makers, fell about 2.7% after the company warned that demand in 2025 was uncertain. In addition, the South Korean chip maker announced record operating profit of 8.08 trillion won ($5.6 billion) in the fourth quarter, up a whopping 2.236% year-over-year, thanks to strong sales of high-bandwidth memory used in generative AI chipsets.
Dimon says the tariffs aren’t all bad
JPMorgan Chase CEO Jamie Dimon said tariffs planned by US President Donald Trump could lead to positive resultsdespite fears of higher prices and trade wars. “If it’s a little inflationary, but it’s good for national security, so be it,” Dimon told CNBC’s Andrew Ross Sorkin on Wednesday in Davos, with comments on “hug[ing[ it out” with Elon Musk and the stock market being “kind of inflated.”
Musk undercuts Trump’s Stargate
Musk dismissed the Stargate project, a joint venture between OpenAI, Oracle and Softbank to invest up to $500 billion in artificial intelligence infrastructure, which Trump announced on Tuesday. “They don’t really have money,” Musk wrote Tuesday in response to an OpenAI post on X, undermining Trump’s announcement.
[PRO] Stay away from US stocks: Morgan Stanley
With the S&P 500 hitting a new all-time high on Wednesday, U.S. stocks remaining expensive and valuations looking stretched, investors should take care to maintain a diversified portfolio, according to Morgan Stanley Wealth Management. The bank advised investors to invest in of this property instead of overconcentration in US stocks.
Conclusion
The S&P 500 shook off December’s lows and touched a new intraday high of 6,100.81 on Thursday. Although the broad index returned to 6,086.37 when the closing bell rang, it was just a hair away from its all-time high of 6,090.27.
It marks a change in pace from December, during which the S&P lost 2.5 percent expectations of a smaller reduction in rates from the US Federal Reserve reverberated through the market. Technology stocks – no surprise here – were the main driver of the benchmark’s gains on Thursday.
Stocks such as Oracle and Nvidia paid attention to Trump’s announcement of Stargate, a mega deal to invest in AI infrastructure. Netflix jumped 9.7% as investors welcomed the streaming service earnings growth in the fourth quarter and paid membership fees. The stock market appeared to be returning to its peak in 2024, when the S&P broke more than 50 records at the close.
Jamie Dimon, however, takes a more cautious tone.
“Asset prices are kind of inflated, by any measure. They’re in the top 10% or 15%” of historical valuations, Dimon told CNBC’s Andrew Ross Sorkin on World Economic Forum in Davos, Switzerland.
He’s not necessarily suggesting that the brakes will slam or that a crash is imminent, but that there needs to be a solid base of support to keep that kind of horsepower behind the sections.
“You need pretty good results to justify those prices,” Dimon said. “Having strategies that encourage growth helps make that happen, but there are downsides that may surprise you.”
This opinion is echoed by the asset management department of JP Morgan.
“The number one risk we’re looking at this year is valuations, which is why we strongly believe you need to back this up with earnings,” Phil Camporeale, multi-asset portfolio manager at JP Morgan Asset Management, told CNBC’s “Money Movers.”
While Trump’s pro-business and low-tax policies may provide the spark to ignite, corporations are ultimately the engine that keeps stocks going.
— CNBC’s Hugh Son, Samatha Subin, Alex Harring and Sarah Min contributed to this report.
