Last Friday, the stock market ended on a positive note, with both the S&P 500 and Nasdaq breaking a streak of five consecutive days of losses. The Dow climbed by 73.92 points, or 1.26%, concluding at 5,942.47. The S&P 500 saw an increase of 339.86 points, marking a 0.8% rise, to finish at 42,732.13.
Stock Market Updates, Jan 8: Sensex and Nifty ended FLAT as gains from RIL countered HDFC Bank declines; Oil PSU index up by 1.5%#Nifty #Sensex #StockMarket #StockMarketIndia https://t.co/KoiMUAfKMK
— ET NOW (@ETNOWlive) January 8, 2025
The Nasdaq surged 340.88 points, equivalent to a 1.77% increase, closing at 19,621.68. The tech sector was the primary driver of this uptrend, with Nvidia, a major player in the chip market, rising by 4.7% and Super Micro Computer, a server manufacturer, soaring by 10.9%. These companies stand to gain from ongoing investments in artificial intelligence.
Analysis | India’s lackluster performance in international markets: Could the decline in US tech stocks and a weakening dollar indicate a pivotal change?📈
Join @nikunjdalmia as he discusses the global factors influencing market sentiment!#US #Dollar #Nvidia #TechStocks #StockMarket pic.twitter.com/ObEGArAGHF
— ET NOW (@ETNOWlive) January 8, 2025
Forecast: “Dow Jones futures increased Monday morning, alongside S&P 500 and notably Nasdaq futures, prompting a report that President-elect Donald Trump is considering tariff increases solely on essential imports.” https://t.co/t0KgGtS6pi
— Scott Lincicome (@scottlincicome) January 6, 2025
Energy producers Constellation Energy and Vistra followed suit with gains of 4% and 8.5%, respectively, propelled by Microsoft’s announcement of an $80 billion commitment to AI-driven data centers for the fiscal year 2025. Jeremiah Buckley, a portfolio manager at Janus Henderson Investors, commented, “The fundamental growth factors that have been driving earnings and market advances over the previous two years remain solid and are likely to continue to enhance earnings.”
Tech Sector Drives Significant Market Gains
Nvidia $NVDA was the poorest performer within the Dow Jones today 📉 pic.twitter.com/q4fi5GKM6S
— Barchart (@Barchart) January 7, 2025
The S&P 500 dipped by 0.48%, the Dow experienced a 0.60% decline, while the Nasdaq Composite moved down by 0.51%. The anticipated “Santa Claus” rally did not materialize this year. Mark Hackett, chief market strategist at Nationwide Financial, remarked, “In recent times, many have chosen to step back following a rather harsh four-week period.”
He added, “The absence of panic selling hints that what we’re observing is a structured consolidation rather than the onset of a prolonged downturn.”
Sentiments in Washington also affected stocks. U.S. Steel shares fell by 6.5% after President Biden announced his intent to halt its acquisition proposal by Nippon Steel. Companies in the alcoholic beverage sector, such as Molson Coors, which dropped 3.4%, were impacted by a surgeon general’s warning regarding alcohol-related cancer risks.
Looking ahead, David Lefkowitz of UBS anticipates a sustained bull market in 2025, projecting the S&P 500 to reach 6,600 by the end of the year, supported by robust profit growth of 9%. However, he cautioned that shifts in trade policies, fiscal disputes in Congress, inflation concerns, and the future of artificial intelligence may introduce volatility.
