Stocks Gain on US Manufacturing Strength

Economic Indicators - China's January manufacturing PMI unexpectedly fell by -0.8 to 49.3, below expectations of no change at 50.1, indicating contraction in the manufacturing sector [1] - The January non-manufacturing PMI also fell by -0.8 to 49.4, weaker than the expected increase to 50.3, marking the steepest pace of contraction in three years [1] - The January ISM manufacturing index in the US expanded by the most in over 3.25 years, suggesting strength in the US economy [4][9] Stock Market Movements - The Shanghai Composite Stock Index dropped more than -2% to a 4-week low [1] - The S&P 500 Index rose by +0.39%, the Dow Jones Industrial Average increased by +0.84%, and the Nasdaq 100 Index was up by +0.64% [5] - Chip makers and AI infrastructure stocks rebounded, contributing to the overall market gains [4][13] Earnings Reports - 150 S&P 500 companies are scheduled to report earnings this week, with 78% of the 167 companies that have reported so far beating expectations [7] - S&P earnings growth is projected to increase by +8.4% in Q4, marking the tenth consecutive quarter of positive year-over-year growth [7] Sector-Specific Developments - US rare-earth stocks are rising as President Trump plans to launch a strategic stockpile of critical minerals with $12 billion in seed money to reduce reliance on China [14] - Energy producers are facing pressure, with WTI crude oil prices falling by more than -4% [15] - Cryptocurrency stocks are retreating, with Bitcoin down more than -6% to a 9.75-month low, and nearly $590 million in long Bitcoin positions liquidated over the weekend [2][16] Future Economic Expectations - The markets are anticipating various economic indicators this week, including job openings, employment changes, and nonfarm payrolls [6] - The University of Michigan's January consumer sentiment index is expected to fall by -1.5 to 54.9 [6]