After a strong year for U.S. stocks, investors are looking to continue the momentum into mid-January, with expectations that upcoming economic data and political changes in Washington could influence market movements. The S&P 500 rose 25% in 2024 by December 27, while the Nasdaq Composite surged over 31%. However, stocks saw a selloff on Friday due to profit-taking and concerns about January’s performance.
Stocks often perform well during the last few trading days of December and into early January, a phenomenon known as the “Santa Claus rally,” which has historically boosted the S&P by an average of 1.3% since 1969. Despite Friday’s drop, the S&P rose 1.77% over the last five trading days, while the Nasdaq gained 1.8%.
Looking ahead, U.S. employment data, set for release on January 10, will give investors insight into the economy’s health. Additionally, corporate earnings reports for Q4 will test the market’s strength, with projected earnings growth of 10.33% in 2025, slightly lower than the 12.47% expected growth in 2024. President-elect Donald Trump’s policies, particularly on taxes and regulation, are expected to benefit sectors like banking, energy, and crypto.
Trump’s inauguration on January 20 may bring volatility, as he is expected to introduce numerous executive orders that could impact various industries, including trade policies that might affect tariffs and immigration. The potential consequences for global currency markets are also a concern.
Finally, the Federal Reserve’s meeting later in January could challenge the stock rally, particularly if its monetary policy signals fewer interest rate cuts in 2025. While this disappointed some investors, it could benefit alternative assets like cryptocurrencies. With the incoming Trump administration’s crypto-friendly stance, Bitcoin has surged above $107,000, boosting investor optimism.
I like this site because so much utile stuff on here : D.
My brother recommended I may like this web site. He was once entirely right. This put up truly made my day. You can not believe simply how so much time I had spent for this info! Thanks!
A powerful share, I simply given this onto a colleague who was doing a little evaluation on this. And he in truth bought me breakfast as a result of I found it for him.. smile. So let me reword that: Thnx for the treat! However yeah Thnkx for spending the time to discuss this, I feel strongly about it and love reading extra on this topic. If potential, as you grow to be expertise, would you mind updating your blog with extra particulars? It is highly helpful for me. Huge thumb up for this weblog publish!
Pretty nice post. I just stumbled upon your weblog and wanted to say that I have really enjoyed browsing your blog posts. In any case I will be subscribing to your rss feed and I hope you write again very soon!
One important issue is that while you are searching for a student loan you may find that you will need a co-signer. There are many scenarios where this is true because you could find that you do not have a past history of credit so the loan company will require that you’ve got someone cosign the financing for you. Thanks for your post.