World Street | Tech rally lifts S&P 500, LinkedIn faces data lawsuit, Dollar holds steady and more

World Street offers sneak peak into top global news developments

Some of the top global developments include rising concerns among U.S. businesses in China, a tech-driven rally pushing the S&P 500 to new highs, LinkedIn facing a lawsuit over user data, and the dollar staying steady amid tariff uncertainty. Japan’s exports continued their upward trend, while South Korea's economy showed muted growth amid political turmoil. Dive into this January 23 World Street edition for more insights!

Rising Concerns Among U.S. Firms in China

Over half of American businesses in China, the highest level in five years, express concerns about a potential worsening of the bilateral relationship between the world’s two largest economies, according to a survey released on Janaury 23. The annual American Chamber of Commerce (AmCham) in China survey revealed that 51% of respondents were worried about future U.S.-China relations.

Tech Rally Lifts S&P 500 to New High

Wall Street's indexes climbed on Janaury 22, with the S&P 500 hitting an intraday record high, as investors welcomed Netflix's strong quarterly results and President Donald Trump's private-sector AI investment initiative. The technology sector surged 2.5%, leading the S&P 500's 11 major industry groups, driven by gains in AI leaders Nvidia and Microsoft. Netflix shares soared 9.7%, becoming the S&P's top performer, after the company reported a record increase in holiday-quarter subscribers, allowing for price hikes across most service plans.

LinkedIn Faces Lawsuit Over User Data Sharing for AI Training

LinkedIn, owned by Microsoft, faces a lawsuit from Premium customers alleging the platform shared their private messages with third parties without consent to train generative AI models. The proposed class action claims LinkedIn introduced a privacy setting last August, allowing users to opt in or out of data sharing discreetly.

Dollar Steadies Against Major Currencies

The dollar remained steady against major currencies on Janaury 23, maintaining its subdued movement from the past two days as markets awaited clearer announcements on tariffs from U.S. President Donald Trump. The dollar index, which tracks the greenback against six key peers, held steady at 108.25 after modest gains of 0.1% over the previous two days.

Japan's Exports Rise for Third Consecutive Month

Japan's exports climbed for the third consecutive month in December, indicating companies may have accelerated shipments in anticipation of potential tariffs proposed by U.S. President Donald Trump. Exports grew 2.8% year-on-year in December, exceeding market expectations of a 2.3% rise but slowing from November’s 3.8% gain. Shipments to China, Japan’s largest trading partner, dropped 3%, while exports to the U.S. fell 2.1%. Imports increased 1.8%, falling short of the forecasted 2.6% rise but reversing November's 3.8% decline. This resulted in a trade surplus of 130.9 billion yen ($836.8 million) for December, defying expectations of a 53 billion yen deficit.

South Korea's Q4 Growth Falls Short Amid Political Crisis

South Korea's economy showed minimal growth in the fourth quarter of 2024, falling short of market expectations, as domestic demand was affected by the country’s most severe political crisis in decades, increasing speculation for further fiscal and monetary measures to stimulate growth. The country’s GDP grew by just 0.1% quarter-on-quarter, according to advanced central bank estimates released on January 23, matching the previous quarter’s growth but below the 0.2% forecast in a Reuters survey.

(With inputs from Reuters and other agencies)