US stocks ended lower on Friday, with the S&P 500 declining 0.20%, the Nasdaq 100 falling 0.50%, and the Dow slipping 0.30%. This came as markets took a breather following a week of gains, reflecting mixed corporate earnings and policy signals from President Trump. Despite the dip, all three indices logged weekly gains of nearly 2%. A steep drop in semiconductor stocks dragged tech-heavy indices lower, with Nvidia falling 3.10% and Texas Instruments plunging 7.50% on disappointing forecasts. While Trump’s softened stance on China tariffs provided some relief, warnings of potential trade actions against other partners kept uncertainty high. Consumer sentiment also declined for the first time in six months amid ongoing inflation concerns. Investors now await the Federal Reserve’s likely decision to hold rates steady next week, given that long-term inflation expectations remain stable.

In Europe, stocks closed flat after nine consecutive sessions of gains as markets balanced corporate updates and trade risks linked to U.S. policies under President Trump. The STOXX 50 ended unchanged at 5,223, its highest level since 2000, while the STOXX 600 dipped less than a point to 530, staying near record highs. Luxury stocks outperformed, buoyed by strong fourth-quarter sales from Burberry.

Locally, the Johannesburg Stock Exchange rebounded on Friday, gaining 0.41% after two consecutive days of losses. The rand also strengthened, closing at R18.28/$ by 18h00.

In Asia, the Hang Seng Index surged 1.90% to 20 066 on Friday, snapping a two-day losing streak. The rally followed a "friendly" conversation between President Trump and Chinese leader Xi Jinping, during which Trump expressed hopes for a trade deal. For the week, the Hang Seng gained 2.50%, marking its second consecutive weekly increase, aided by Chinese regulators urging insurers and mutual funds to boost stock purchases. Meanwhile, Japan’s Nikkei slipped 0.070% to 39 932, ending a four-day winning streak. The Bank of Japan raised interest rates by 25 basis points to 0.5%, the highest in 16 years, and projected inflation reaching its 2% target in the latter half of its forecast period. Japan’s core inflation rate hit a 16-month high of 3% in December, supporting the rate hike decision.

On the commodities front, Brent crude oil futures eased to $78 per barrel after six straight days of losses. The weekly decline of over 3%, the steepest since November, followed President Trump’s call for lower crude prices during the Davos forum. Trump also urged Saudi Arabia and OPEC to reduce oil prices while threatening tariffs on China, Canada, and Mexico, raising concerns about global growth and oil demand.