Here are the top news stories of the week that could impact the markets and investment strategies:
Tech Stocks Experience a Decline
After a prolonged period of steady growth, the S&P 500 index saw its largest daily drop since April last week, decreasing by 1.39%. The Nasdaq, heavily weighted with tech stocks, recorded its biggest decline since late 2022, falling by 2.77%. This drop was primarily driven by the falling stock prices of leading chip and semiconductor manufacturers such as ASML, Nvidia, and TSMC, which are significant components of both indices. Contributing factors include statements by former U.S. President Donald Trump, who suggested that Taiwan, which produces about a third of the world's chips, should pay for U.S. protection and accused Taiwan of depriving U.S. companies of profits. Additionally, reports surfaced that the current U.S. administration might impose stricter export controls on chip technology to China, further negatively impacting U.S. tech stocks.
🌐 Impact: The drop in tech stocks could affect overall market sentiment and investment strategies, particularly in tech sectors.
Netflix Adds 8 Million Subscribers
Streaming giant Netflix added 8 million subscribers last quarter, reaching a total of 278 million. This growth has also led to an increase in profits, now standing at $2.1 billion. The main driver behind this success is the introduction of ad-supported subscription tiers priced at $6.99. For comparison, the most expensive subscription in Croatia is priced at €9.99. The increase was further boosted by new content such as the third season of "Bridgerton" and the special "The Roast of Tom Brady."
🌐 Impact: Netflix’s subscriber growth and increased profits may signal a strong position in the streaming market and could influence future content and pricing strategies.
Fitch Confirms Mexico’s Credit Rating
On Thursday, Fitch Ratings reaffirmed Mexico’s credit rating at BBB-. The country maintains stable outlook prospects, and its bonds are expected to remain close to high-quality investment grade. This stability is attributed to government plans for a more efficient economy and stable currency. Additionally, Mexico’s public debt is expected to remain below the average for similar countries. However, Fitch warns of a potential slight economic slowdown in the near future due to factors such as reduced government spending by the new administration, high interest rates set by the local central bank, and slower economic growth in neighboring the United States, which heavily influences Mexico’s economy. Moreover, comments from Donald Trump regarding a potential 10% general tariff on all foreign imports could negatively impact Mexican exports to the U.S.
🌐 Impact: Mexico’s credit rating stability might support investment confidence, though economic uncertainties and potential trade policy changes could present risks.
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