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Stocks on Wall Street rallied on Friday to end the first week of 2025 on a positive note amid fresh signs of manufacturing stability, snapping a multi-day streak of losses.
The S&P 500 closed the day 1.3 percent higher, its biggest gain since Nov. 6 — the day after Donald TrumpAmerican election victory. The benchmark index’s results on Friday also ended a five-day streak of losses – the longest rally since April.
The tech-heavy Nasdaq Composite rose 1.8 percent, helped by a more than 8 percent gain for electric vehicle maker Tesla, after it reported a slide in its shares a day earlier. First discount on annual vehicle transportation More than ten years. Semiconductor giant Nvidia rose more than 4 percent.
The gain came at the end of the short New Year’s Day weekend, which resulted in thin trading. Analysts said that some investors on Monday He said they are simply preparing for a “real” launch in 2025.
But the day’s stock price readings came in with fresh readings on U.S. manufacturing activity as consensus forecasts rose, bolstering investor sentiment and Trump ally Mike Johnson as well. He was re-elected as the Speaker of the US House of Representatives.
“It’s really a combination – I call it a popover of different factors,” said Christina Hooper, chief global market strategist at Invesco. “Initially we’ve seen some selling — and so at some point, I think investors will recognize that there are buying opportunities created when you have more days to sell.”
At the same time, Hooper added: “We got some good news today in terms of production[numbers]and I think that’s definitely a positive feeling.” We had a relatively peaceful election in the House which contributed to a more positive mood.
The ISM’s manufacturing purchasing managers’ index reading on Friday came in at 49.3 for December — below the 50 threshold that would indicate expansion, but above economists’ forecasts and higher than the 48.4 reading for November.
“The S&P 500 (investors) saw a broad rally as they took comfort in the orderly re-election of the US House Speaker,” said Dick Mularkey, managing director of SLC Management.
Referring to the group of Big Tech names that have come to dominate the U.S. stock market, he says, “The Magnificent Seven, in particular, remain strong even when valuations are at their peak.” Investors are still confident that they will pay big returns on (artificial intelligence) investment and gain first-mover advantage.
Even after Friday’s big gains, the S&P and Nasdaq still posted small weekly losses.
Invesco’s Hooper believed “the overall environment is favorable for risk assets,” meaning “we’re likely to have more positive days than negative days” as the new year progresses. However, she said, “there can be great flexibility.”
Let’s be honest, there’s more uncertainty, and as we get closer to January 20 (Trump’s inauguration), I think there will be more question marks around what might come from the new administration.
Additional reporting by Will Schmidt
