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The floor of the New York Stock Exchange during morning trading on January 22, 2025.
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This is a report from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open provides investors with information on 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 high for S&P 500
US markets popped up on wednesday. The S&P 500 hit a new intraday high, although it was pulled back by the closing bell. Asia-Pacific stocks were mixed on Thursday. China’s CSI 300 index rose about 1%, leading the region, authorities said urged public funds and insurers buy shares. South Korea Kospi index fell 0.8% after the release of disappointing gross domestic product figures.
South Korea’s GDP lives up to expectations
South Korea’s economy grew by 1.2% year-on-year in the fourth quarter, according to preliminary data. That missed the 1.4% expected by a Reuters poll and was lower than the 1.5% increase in the third quarter of 2024. However, GDP growth for the full year was 2%, higher than the 1.4% growth in 2023.
SK Hynix’s operating profit jumps more than 2,000%
Shares in SK Hynix, one of the world’s largest makers of memory chips, fell about 2.7% after the firm warned that demand in 2025 was uncertain. At the same time, the South Korean chip maker published a message record operating income of $8.08 trillion ($5.6 billion) in the fourth quarter, up a staggering 2,236% year-over-year, driven by strong sales of high-bandwidth memory used in generative AI chipsets.
Diman says the rates aren’t bad
JPMorgan Chase CEO Jamie Dimon said US President Donald Trump’s planned tariffs could lead to positive resultsdespite fears of rising 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, along with comments on “hug” with Elon Musk and the stock market is “somewhat inflated.”.”
Musk is undermining Trump’s Stargate
Musk declined Project StargateOpenAI Joint Venture, Oracle and Softbank to invest up to $500 billion in artificial intelligence infrastructure, which Trump announced on Tuesday. “They don’t really have any money,” Musk wrote Tuesday in response to OpenAI’s post on X. undermining Trump’s statement.
(PRO) Diversification 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 make sure to maintain a diversified portfolio, according to Morgan Stanley Wealth Management. The bank advised investors to invest in these assets instead of overconcentrating on US stocks.
Bottom line
The S&P 500 snapped a December slump to hit a new intraday high of 6,100.81 on Thursday. While the broad index returned to 6,086.37 at the closing bell, it was just a hair’s breadth away from its all-time high of 6,090.27.
That marks a change in gear from December, during which the S&P lost 2.5%. expectations of smaller rate cuts from the US Federal Reserve reflected in the market. Technology stocks – no surprises here – were the main driver of Thursday’s gains in the benchmark.
Stocks like Oracle and Nvidia jumped on Trump’s announcement of Stargate, a mega-investment deal in artificial intelligence infrastructure. Netflix jumped 9.7% as investors backed the streaming service a surge in profits in the fourth quarter and paid membership. The stock market appeared to be returning to its 2024 heyday, when the S&P broke more than 50 records.
Jamie Dimon, however, strikes a more cautious tone.
“Asset prices are somewhat inflated by any measure. They’re in the top 10% or 15%” of ratings historically, Dimon told CNBC’s Andrew Ross Sorkin. World Economic Forum in Davos, Switzerland.
He doesn’t necessarily suggest that the brakes will slam or that a crash is imminent, but that there must be a solid base of support to sustain such power behind the stock.
“You need pretty good results to justify those prices,” Dimon said. “Having strategies that promote growth helps that happen, but there are downsides, and they can surprise you.”
This sentiment is echoed by JP Morgan’s asset management division.
“The number one risk we’re looking at this year is valuations, so we believe you have to support those returns,” Phil Camporeale, multi-asset portfolio manager at JP Morgan Asset Management. , told CNBC’s “Money Movers.”
While Trump’s pro-business, low-tax policies may provide a spark, corporations are ultimately the engine that keeps stocks running.
— CNBC’s Hugh Song, Samata Subin, Alex Haring and Sarah Min contributed to this report.
