Dow Jones Industrial Average reaches a historic milestone, Bitcoin surpasses $70,000 mark Strategy(MSTR.US) rises over 26%

Friday, the three major indices closed higher, with the Dow Jones reaching a high of 50,169.65 points, surpassing the 50,000 mark for the first time in history and hitting a new intraday high. The Dow first broke through 40,000 points on May 16, 2025. Tech stocks rebounded after several days of large-scale sell-offs, and Bitcoin surged significantly after being halved.

【U.S. Stocks】At the close, the Dow rose 1,206.95 points, or 2.47%, to 50,115.67; the Nasdaq increased 490.63 points, or 2.18%, to 23,031.21; the S&P 500 gained 133.90 points, or 1.97%, to 6,932.30. Strategy (MSTR.US) rose over 26%, AMD (AMD.US) up over 8%, NVIDIA (NVDA.US) up over 7.8%, CoreWeave (CRWV.US) up over 20%.

【European Stocks】Germany’s DAX 30 index rose 270.95 points, or 1.11%, to 24,719.53; the UK FTSE 100 index increased 58.12 points, or 0.56%, to 10,367.34; France’s CAC 40 index gained 35.67 points, or 0.43%, to 8,273.84; Europe’s STOXX 50 index rose 71.55 points, or 1.21%, to 5,997.25; Spain’s IBEX 35 index increased 189.24 points, or 1.07%, to 17,935.54; Italy’s FTSE MIB index rose 36.93 points, or 0.08%, to 45,856.50.

【Cryptocurrency】Bitcoin surged over 12%, returning above $70,000. Previously, Bitcoin briefly fell below $61,000 overnight, hitting its lowest level since October 2024; Ethereum rose over 12.6%, standing above $2,050.

【Metals】Spot gold increased 3.98%, to $4,966.48; spot silver rose 9.95%, now at $77.949 per ounce.

【Crude Oil】March WTI crude oil rose 0.4% in New York, settling at $63.55 per barrel; April Brent crude oil increased 0.7% to $68.05 per barrel.

【Macro News】

Dow hits historic 50,000 milestone. On Friday during U.S. trading hours, the Dow reached a historic milestone of over 50,000 points. This marks a new milestone for the U.S. economy after years of strong growth. During this period, the U.S. economy not only outperformed other developed economies but also attracted significant global investment. Chris Hyzy, Chief Investment Officer at Bank of America Merrill Lynch Private Bank, said, “Regardless, we don’t believe the opportunities in the U.S. market are over.” The recent climb of the Dow over the past few months signals a reversal from earlier this year when tariffs imposed by Trump caused market turbulence. However, since then, many concerns about tariff impacts have not materialized, and with the U.S. economy continuing to grow strongly, investors remain optimistic that the Federal Reserve will continue to lower interest rates this year. Nonetheless, despite the Dow steadily approaching the 100,000 mark, some warning signs remain. Price pressures continue to squeeze the lives of millions of low- and middle-income Americans, and U.S. employment growth remains sluggish. Meanwhile, overseas economic growth and expansionary government policies have led international markets to outperform the overvalued U.S. market in recent months. This could mean that some individual stocks driving the Dow higher may face greater pressure in the future.

Federal Reserve Vice Chairman Jefferson hints: No policy adjustments needed in the short term. Vice Chairman Jefferson stated that the Fed’s current interest rate stance is “completely appropriate” for a stable economy, indicating he is not in a rush to restart the rate cuts that were paused in January. Jefferson pointed out that although inflation has remained above the Fed’s 2% target, a downward trend in inflation is expected to reemerge later this year. He also estimates that the overall economy is in good shape, with economic growth in 2026 potentially reaching about 2.2%. He said, “I see some signs that the labor market is stabilizing, inflation is expected to return to our 2% target, and sustainable economic growth will continue.” Jefferson noted that the three rate cuts implemented by the Fed from September to December last year brought rates to a range of 3.5% to 3.75%—close to the market’s “neutral level,” which neither stimulates nor restrains the economy. He added that this stance strikes a reasonable balance between the two major risks faced by the central bank.

Federal Reserve Daly: The Fed must balance dual mission risks. Daly wrote that if they communicate with businesses, they will show cautious optimism. The economy is growing well, consumer spending remains stable, job supply is ample, and productivity gains are helping control costs. However, after speaking with workers, they are not entirely sure. This is also reflected in recent polls showing Americans expect fewer job opportunities and an increase in unemployment. From many perspectives, this disconnect is understandable. We are currently in a period of relatively low hiring and firing activity, and this has persisted for some time. This situation may continue, but workers are clearly aware that conditions could change rapidly, leading to a labor market with reduced hiring and increased layoffs. Because inflation remains above the FOMC’s 2% target, this situation indeed feels unstable. What does this mean for policy? We must balance the two sides of our mission. Americans need price stability and full employment, and we cannot take either for granted.

U.S. Treasury Secretary Yellen: Trump administration policies show support for a strong dollar. Treasury Secretary Yellen said on Friday that despite recent dollar depreciation, Trump still advocates for a strong dollar policy because his administration is taking measures to make investing in dollar assets more attractive. When asked in an CNBC interview whether the dollar’s decline to a four-year low in late January, which Trump called a “good thing,” indicates the U.S. still pursues a strong dollar policy, Yellen responded, “The so-called strong dollar policy is about whether we are taking measures to create a favorable environment for the dollar. Our tax policies, trade policies, deregulation, energy policies, and reaffirming sovereignty in key mineral sectors—do these initiatives make the U.S. the best destination for global capital? I believe no one has done better than Trump in this regard.” Yellen also said that Trump’s weekend comment that he would sue Federal Reserve Chair nominee Kevin W. Warsh if he did not cut rates was purely a joke. “And the President respects the independence of the Fed very much.”

Survey shows slight rebound in U.S. consumer confidence; concerns about inflation and employment remain. A survey indicates that despite ongoing worries about the labor market and rising living costs, U.S. consumer confidence slightly improved in early February. The University of Michigan Consumer Sentiment Index rose to 57.3 this month, up from the January final of 56.4. Joanne Hsu, director of the survey, said, “Although the current confidence index is the highest since August 2025, the gains over the past few months have been modest. From a historical perspective, overall confidence remains very low. Persistent high prices erode personal finances, and concerns about rising unemployment risks are still widespread.” Consumers’ inflation expectations for the next year decreased from 4.0% in January to 3.5% this month; their five-year inflation outlook increased slightly from 3.3% last month to 3.4%.

【Stock News】

Apple plans to allow third-party voice-controlled AI chatbots to access CarPlay. According to informed sources, Apple (AAPL.US) is preparing to permit other companies’ voice-controlled AI applications to access the CarPlay system. This move will enable users to interact with AI chatbots via their vehicle’s interface for the first time. The sources said the company will work over the coming months to support applications within the CarPlay system. This change marks a strategic shift for Apple. Previously, Apple’s popular in-car infotainment software only allowed its own Siri assistant as a voice control option. With this initiative, AI providers like OpenAI, Anthropic PBC, and Google will be able to launch CarPlay versions supporting voice control. However, some restrictions remain. Insiders say Apple will not allow users to replace the Siri button on CarPlay or wake the service with a wake word. Users will need to open the relevant app to activate third-party voice control features.

【Major Bank Ratings】

UBS: Downgrade Amazon (AMZN.US) target price from $311 to $301.