Market Update: Stocks Edge Higher After Holiday Break
As trading resumed after the Christmas holiday, US stocks experienced a slight uptick, with the S&P 500 gaining 0.1% and the tech-heavy Nasdaq erasing early session losses to climb above the flatline. The Dow Jones Industrial Average also saw a 0.2% increase.
Jobless Claims Data Takes Center Stage
With a lack of significant economic data points this week, the latest Labor Department data on weekly jobless claims took the spotlight. The data revealed a drop to 219,000, beating expectations of 223,000. However, continuing claims jumped by 46,000 in the week ending Dec. 14 to 1.91 million, the highest level since November 2021, indicating a cooling labor market.
GameStop Stock Surges
GameStop shares rose as much as 10% early Thursday, eventually paring gains to around 6% midday. This surge comes after infamous meme stock trader “Roaring Kitty” posted a mysterious photo on social media, sparking speculation. The stock is now on track to notch a roughly 16% gain over the past five days, bringing its 2024 gains to over 88%.
Tech Stocks See Mixed Performance
Apple stock hit an all-time intraday high after Wedbush analysts raised their price target to a Street high of $325, anticipating a “golden era of growth” for the tech giant in 2025. Meanwhile, AI chip heavyweight Nvidia pared early morning losses to trade just below the flatline. Shares of Google parent company Alphabet and other tech giants wavered, leading to a modest decline in the technology sector.
AI Agents Set to Take Over in 2025
As AI chatbots become increasingly useful, autonomous and semi-autonomous AI systems, or agents, are expected to take over in 2025. Companies like Nvidia, Google, Microsoft, and Salesforce are already touting the potential of agentic AI, which could revolutionize the way enterprises and consumers think of AI technologies.
Market Outlook
Despite a brief pause in the “Santa Claus rally,” the S&P 500 and Nasdaq Composite remain within striking distance of their records. As Wall Street returns from its holiday break, investors will be keeping a close eye on economic data and company earnings to guide their investment decisions.
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