S&P 500 Has Its Best Week Since November Election: Markets Wrap
Jan 18, 2025 - ndtvprofit.com
The S&P 500 experienced its best week since the November presidential election, rising 2.9% for the week, driven by gains in megacap stocks like Nvidia and Tesla, and a significant jump in Intel shares following acquisition rumors. Positive sentiment was bolstered by discussions between Donald Trump and Chinese President Xi Jinping on trade, TikTok, and fentanyl, as well as easing inflation data and favorable earnings reports from financial companies. The Nasdaq 100 and Dow Jones also saw gains, while bonds rebounded with 10-year yields decreasing. Analysts suggest that the market's recent rally is supported by oversold conditions and expectations of pro-growth policies from the incoming Trump administration.
Corporate highlights include Microsoft's $13 billion investment in OpenAI raising concerns about its dominance in AI, the Supreme Court's ruling against TikTok due to national security risks, and investigations into General Motors over engine failure risks. Additionally, Novo Nordisk faces challenges with its drug Wegovy, and Bumble's founder Whitney Wolfe Herd is set to return as CEO. In the commodities and currencies markets, Bitcoin and Ether saw significant increases, while West Texas Intermediate crude and spot gold prices fell.
Key takeaways:
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The S&P 500 had its best week since the November presidential election, rising 2.9% for the week.
Trump and Chinese President Xi Jinping discussed trade, TikTok, and fentanyl, influencing market sentiment positively.
Microsoft's $13 billion investment in OpenAI raises concerns about its dominance in the AI market.
The Supreme Court upheld a law threatening to shut down TikTok in the US due to national-security risks.
