Market Recap (1/26/25)
Market Recap of the Week of Jan 21, 2025 - Jan 24, 2025
Source: Apple Stocks Application
Overall Market Trends:
Last week, stocks skyrocketed with all four major indices finishing positive for the second straight week. The New York Stock Exchange Composite (NYSE) soared 386 points (+1.97%), the S&P 500 rose 104 points (+1.74%), the NASDAQ Composite posted weekly gains of 322 points (+1.64%), and the Dow Jones Industrial Average surged 933 points (+2.14%). These results were largely influenced by actions and remarks made by President Trump.
Stocks pushed higher on Tuesday after investors viewed President Trump’s first-day actions revolving around international trade as softer than anticipated. Trump mentioned that he was considering placing a 25% tariff on Mexico and Canada on February 1 due to their border policies. He also threatened to enforce tariffs on China if they did not approve the sale of TikTok.
Sentiment continued into Wednesday’s session followed by artificial intelligence optimism, boosting stocks. Oracle (NYSE: ORCL) climbed 6% while Nvidia (NASDAQ: NVDAO rose 4% after Trump announced “Stargate”, a new joint venture with AI giants OpenAI, Softbank, and Oracle. The program will oversee an investment of roughly $500 billion into AI infrastructure within the United States. Investors also expect Trump to pull back on regulations and decrease corporate taxes which also lifted stocks as this agenda could boost profits.
Stocks continued to rise on Thursday after President Trump called for lower interest rates and oil prices. This pulled oil futures and short-term treasury yields into the red.
However, stocks pulled back on Friday due to profit-taking, snapping the four-day win streak for indices. The mega-cap companies that contributed to the market's recent increase also put downward pressure on equities- Nvidia fell 3% and Tesla declined 1%.
Past Earnings Report:
On Tuesday, 3M (NYSE: MMM) rose about 4% after beating earnings expectations.
Netflix (NASDAQ: NFLX) soared on Wednesday after the company exceeded the 300 million subscribers mark and released a strong earnings report, rising over 9% on the day. Proctor & Gamble (NYSE: PG) also surpassed earnings expectations, rising 2%.
Novo Nordisk (NYSE: NVO) surged 8% on Friday after the company released impressive early-stage results for a weight loss drug. Texas Instruments (NASDAQ: TXN) fell 7% after releasing weak guidance.
Looking Towards the Future
Upcoming Important Economic Events:
Tuesday: Durable-goods orders; S&P Case-Shiller home price index (20 cities); Consumer confidence
Wednesday: FOMC interest-rate decision; Fed Chair Powell press conference
Thursday: Initial jobless claims; GDP
Friday: Fed Gov. Michelle Bowman speaks; Personal Consumption Expenditures (PCE); Core PCE; Chicago Business Barometer (PMI)
Future Earnings Reports: