Market Recap (1/19/25)

Written By Jayden Kahn

Market Recap of the Week of Jan 13, 2025 - Jan 17, 2025

Source: Apple Stocks Application

Overall Market Trends:

Last week, stocks skyrocketed with all four major indices finishing the week up over 2.4%. The New York Stock Exchange Composite (NYSE) soared 645 points (+3.40%), the S&P 500 rose 170 points (+2.92%), the NASDAQ Composite posted weekly gains of 471 points (+2.46%), and the Dow Jones Industrial Average surged 1,557 points (+3.71%).

On Monday, the market saw investors rotating out of tech stocks and into non-tech stocks like Caterpillar (NYSE: CAT), JP Morgan (NYSE: JPM), and UnitedHealth (NYSE: UNH), causing the Dow Jones to rise while the tech-heavy NASDAQ declined. Nvidia (NASDAQ: NVDA) and Palantir (NASDAQ: PLTR) both fell drastically during Monday's session, losing 6% and 15%, respectively.

Despite big-tech companies continuing to fall on Tuesday, a lighter-than-expected Producer Price Index (PPI) report caused the Dow to rise. The PPI came in at 0.2%, far lower than the 0.4% estimate.

Stocks rallied during Wednesday’s trading session after a Consumer Price Index (CPI) and Core CPI report came in lower-than-anticipated with all indices up over 1.5% on the day. The low inflation-gauge reports are a good sign for future rate decisions, eliminating fears of potential rate hikes and making it more likely for future rate cuts. Indices were also propelled by the major bank earnings reports (see section titled Past Earning Reports for more).

Despite more positive earning reports, markets fell on Thursday after three straight days of gains as tech shares pulled back. Apple (NASDAQ: AAPL) dropped 4%, Tesla (NASDAQ: TSLA) declined 3%, and Nvidia (NASDAQ: NVDA) fell 1%.

Stocks finished off the week on a positive note with the Dow, Nasdaq, and S&P rising 0.78%, 1.51%, and 1%, respectively. This comes after big-tech stocks rebounded with Tesla climbing 3% and Nvidia increasing 3.1%.

Past Earnings Report:

JP Morgan rose roughly 2% on Wednesday after beating both EPS and revenue expectations. Goldman Sachs soared 6% on Wednesday on revenue and profit beats. Wells Fargo surged 6% on Wednesday after the company said its net interest income would increase by 1-3%. Similarly, Citi Group also rose 6% on Wednesday after beating its fourth-quarter earnings estimates.

Morgan Stanley saw a 4% gain on Thursday after exceeding earning expectations. Bank of America fell 1% despite beating net earnings estimates.

Looking Towards the Future

Upcoming Important Economic Events:

  • Monday: Markets closed for Martin Luther King Jr. holiday

  • Tuesday: NFIB optimism index; Producer price index (PPI); Core PPI; Fed Beige Book

  • Wednesday: U.S. leading economic indicators

  • Thursday: Initial jobless claims

  • Friday: Consumer sentiment (final); S&P flash U.S. services PMI; S&P flash U.S. manufacturing PMI

Future Earnings Reports:

Jayden Kahn
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Market Recap (1/12/25)