CNBC Daily Open: Concerns over sluggish U.S. consumer spending

Nikkei edges closer on all-time high #

Asian markets rallied on Friday as Japan’s Nikkei 225 reached a new 34-year high, coming close to all-time record levels. This positive movement comes after Japan slipped into a technical recession and lost its position as the third-largest global economy to Germany. In the U.S., the S&P 500 set a new record despite a decline in retail sales in January. The Dow Jones Industrial Average experienced a late-day rally, and the Nasdaq Composite also gained.

BOJ ’s balancing act #

A former Bank of Japan board member expects the central bank to make policy changes, including exiting from negative interest rates, in the spring. BOJ Governor Kazuo Ueda is under pressure to address yen weakness resulting from interest rate divergence between the U.S. and Japan.

Riding on Nvidia’s success #

Shares of several artificial intelligence companies soared after filing documents revealed that Nvidia had taken stakes in them. This reflects investors’ strong interest in leveraging Nvidia’s AI growth story.

Forget Tesla look at Ford #

Ford CEO Jim Farley suggested that investors shift their focus from Tesla to Ford’s “Pro” fleet business, which has half a million subscribers and a 50% gross margin. Farley urged investors to consider Ford as the future of the auto industry.

Asia’s AI standouts #

Morgan Stanley identified Asia-Pacific companies in the IT and communications sectors as “underappreciated beneficiaries” of the artificial intelligence boom.

The bottom line #

Consumer spending in the U.S. experienced a significant drop of 0.8% in January following robust spending in December. This decline raises questions about the strength of consumer activity, which is a crucial driver of economic growth in the country. Despite these concerns, the labor market has shown strength, with jobless claims continuing to surprise on the downside. Additionally, regional surveys in the Federal Reserve’s Philadelphia and New York districts indicate better-than-expected performance in the manufacturing sector.