A Breather for US Stocks and Key Global Insights!

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Hello, my friends!

It’s the end of the first week of 2025, and US stocks finally took a breather, snapping a 5-day decline.

European equities, on the other hand, felt the pressure, especially miners, amid concerns about Chinese demand.

Why does China’s economy matter so much?

It’s the second-largest economy in the world, and its actions ripple across global markets.

Here are some key updates from China that caught our attention:

  • Private Sector Relief: China plans to tackle the issue of unpaid debts in the private sector, according to Xiaoqiang.

  • Historic Low Yields: The 10-year bond yield dropped below 1.6% for the first time ever.

  • Treasury Bond Plans: China is gearing up to increase the issuance of longer-maturity special treasury bonds in 2025.

  • Monetary Boost: The central bank injected 19.3 billion yuan through 7-day reverse repos at 1.50%.

Back to the US markets, where news-driven volatility kept traders on their toes (and you know how much I thrive on volatility!). Here's a snapshot of what stirred the action:

US Market Key Points:

  • ISM Manufacturing PMI: Reported at 49.3, beating the forecast of 48.2 and up from 48.4.

  • Fed's Barkin Speaks:

    • "As long as employment and asset values remain strong, consumers will spend."

    • "The story of 2025 will be less about monetary policy, more about economic fundamentals and perhaps geopolitics."

    • "Rate cuts? Only if we see confidence in inflation hitting 2% or a clear demand slowdown."

As we roll into the second week of January, our focus turns to mindset and emotional discipline, tied to the theme of our Daily Checklist.

This Monday, we’ll dive deeper into how this simple yet powerful tool sets the tone for success in trading and beyond.

Stay tuned for insights, strategies, and that much-needed dose of motivation.

See you Monday, ready to crush the week ahead!

Dub app raises $17M for first regulated copy trading platform

On Dub, you don't pick the stocks you want to invest in. You pick the people you want to copy, with portfolios based on hedge fund managers, investing experts, and even law makers.

When you copy a portfolio on Dub, you execute the same trades as them automatically. Dub’s team hopes this will make investing more transparent and accessible.

Dub is SEC-registered, member FINRA. All deposits are SIPC-insured.

Not investment advice. Full disclosures here.

Until next time,
Steve B
Founder, The Daily Impulse

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