Weekly Market Recap Week Ended January 3, 2025

Stocks Surge as 2025 Kicks Off

The markets shook off early-year pessimism on Friday, with every sector of the S&P 500 posting gains. Chipmakers like Nvidia and a Tesla rebound led the charge, pushing all three major indexes into positive territory.

The rally came after the S&P 500 and Nasdaq Composite had both snapped five-day losing streaks earlier in the week, which had slightly trimmed the gains from the market’s strongest two-year run in 25 years. But on just the second trading day of 2025, worries over high valuations and fading hopes for interest rate cuts seemed to vanish.

Steel Blocked, Optimism Prevails
Despite the upbeat tone, U.S. Steel shares tumbled 6.5% after President Biden blocked the company’s planned sale to Japan’s Nippon Steel, citing national security concerns. The move hinted at a more protectionist stance from Washington, with potential implications for future foreign investment.

Political Developments and Economic Policy
On Capitol Hill, Mike Johnson secured re-election as House Speaker by a slim margin. With the incoming Trump administration preparing to push tax cuts, spending reductions, and new tariffs that could impact consumer prices, Johnson’s win signals a fragile but united Republican caucus—for now.

Market Highlights

• U.S. Stocks: The Nasdaq jumped 1.8%, leading Friday’s gains, while the S&P 500 climbed 1.3%—its best day since Nov. 6. The Dow rose 0.8%, or 340 points.
• Treasuries: The 10-year Treasury yield edged higher, settling at 4.596%.
• Currency: The dollar retreated from a multiyear high, with the WSJ Dollar Index slipping from Thursday’s close of 103.18, its highest since November 2022.
• Oil: U.S. crude futures surged 4.8% this week to $73.96 a barrel, the highest since Oct. 11.
• Overseas Markets: Mixed results abroad, with gains in Hong Kong’s Hang Seng Index and South Korea’s Kospi, while the Shanghai Composite fell. European markets mostly declined.
• Big Movers: Rivian soared 24% after exceeding Wall Street expectations for deliveries.

Holiday Trade Hits New Highs
In the world of commodities, live-cattle futures for December wrapped up their 20th consecutive profitable year, recently hitting record highs. The bullish streak continues.

Source: https://www.wsj.com/livecoverage/stock-market-today-dow-sp500-nasdaq-live-01-03-2025

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