Market Recap (1/12/25)
Market Recap of the Week of Jan 6, 2025 - Jan 10, 2025
Source: Apple Stocks Application
Overall Market Trends:
Last week, stocks closed lower with all four major indices declining. The New York Stock Exchange Composite (NYSE) fell 293 points (-1.52%), the S&P 500 slid 115 points (-1.93%), the NASDAQ Composite tumbled 465 points (-2.37%), and the Dow Jones Industrial Average posted weekly losses of 792 points (-1.85%).
On Monday, the tech-heavy indices - NASDAQ and S&P 500 - rose on the backs of chipmaker stocks while the Dow Jones ended flat. Foxcomm (OTCMKTS: HNHPF) reported record fourth-quarter revenue, prompting other big chipmaker stocks to soar. Nvidia (NASDAQ: NVDA) climbed 3.4%, Broadcom (NASDAQ: AVGO) gained 1.7%, and Micron Technology (NASDAQ: MU) surged 10.5%.
Stocks fell on Tuesday after questionable economic report put 2025 interest rate cuts back into question. The Institute for Supply Management (ISM) services report reflected faster-than-expected growth, raising concerns about inflation. Nvidia declined over 6% while Tesla fell 4% after the company was downgraded by Bank of America due to its high valuation and strategy.
Markets continued to decline during Wednesday’s trading session. The Fed’s minutes from their december policy meeting showed all members agreed that there were increased risks with inflation outlook. This did not help the market’s already cautious sentiment from the report during Tuesday’s session. Investors continue to grow weary of the amount of rate cuts for this year.
Markets were closed on Thursday in remembrance of former President Jimmy Carter.
Stocks tumbled on Friday after another economic report weakened the likelihood of increased rate cuts this year. The U.S. job payrolls rose by 256,000 in december, far higher than the expected 155,000. Fed futures now sees a 97% probability of no rate cut at the january meeting and a 25% chance of the March meeting featuring a rate cut after the negative inflation data released throughout the week.
Past Earnings Report:
Looking Towards the Future
Upcoming Important Economic Events:
Tuesday: NFIB optimism index; Producer price index (PPI); Core PPI; Fed Beige Book
Wednesday: Consumer price index (CPI); Core CPI; Empire State manufacturing survey; Richmond, New York, and Chicago Fed President’s speak
Thursday: Initial jobless claims; Import price index; Philadelphia Fed manufacturing survey
Friday: Housing starts; Building permits; Industrial production; Capacity utilization
Future Earnings Reports: