Stock Market Rises as Trump Administration Begins and Cathie Wood Invests in AI

The Dow Jones Industrial Average rose nearly 300 points, buoyed by optimism surrounding the new Trump administration, while Apple lagged with a 3% drop. Small caps and sectors like utilities and real estate showed strength, with Cathie Wood’s ARK Invest making significant moves in AI stocks despite risks. China stocks experienced mixed results amid hopes for improved U.S.-China relations, while Trump hinted at potential tariffs on Canada and Mexico.

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Chinese Stocks Decline Amid Stimulus Concerns and Economic Weakness

Mainland Chinese equities led a regional decline as weak economic data and a lack of commitment to further stimulus from Beijing raised concerns. The CSI 300 Index dropped as much as 5.1%, erasing gains from the previous day, while Hong Kong shares fluctuated after a significant drop. In contrast, US tech stocks rebounded, driven by chipmakers, as the market recovered from its worst session in a month.

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China’s Efforts to Revive Stock Market and Economic Growth in 2024

China’s government is taking steps to revive the country’s struggling stock exchanges amid economic challenges. Efforts include incentivizing listed firms to drive scientific and technological self-reliance, injecting capital into the market, and addressing issues in the property sector and local government debt. Despite these measures, skepticism remains about their impact on the stock market’s performance.

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