New Year, New Gains: Stocks Rally on First Trading Day
The first trading day of the year saw a surge in stocks, with the S&P 500 and Dow Jones Industrial Average both rising 0.8%. The tech-heavy Nasdaq Composite also made gains, up 1% after markets reopened from Wednesday’s closure.
Big Tech Leads the Charge
Several Big Tech stocks led the market higher, with shares of Nvidia, Meta, and Cloudflare all rising. Nvidia, in particular, saw a significant boost, up over 2% after Goldman Sachs analysts upgraded the stock to a Buy recommendation, citing “improving sales and marketing productivity cycle” and “new AI inferencing use cases”.
Tesla Takes a Hit
However, Tesla shares slid almost 6% after the electric vehicle maker posted its first decline in annual deliveries. The news was compounded by a report that a Cybertruck loaded with firework mortars and fuel canisters exploded in Las Vegas, killing one person. The FBI is investigating whether the blast was an act of terrorism.
Economic Data: Mortgage Rates Rise, Jobless Claims Fall
Over the holiday week, US mortgage rates rose to 6.97%, the highest level since early July. This weighed on applications for home purchases and refinancing, according to the Mortgage Bankers Association. On the other hand, weekly jobless claims fell to their lowest level since March, with 211,000 claims filed.
Apple Offers Rare Discounts in China
Apple shares fell around 2% after the iPhone maker offered rare price discounts on its latest models in China, reflecting rising competition from local handset makers.
Cloudflare Sees Double Upgrade from Goldman Sachs
Shares of Cloudflare jumped more than 5% after the cloud platform company received a double upgrade from Goldman Sachs. The analysts see a 28% upside for the stock and raised their price target to $140.
Markets Eye a Comeback
After a year-end slide, markets are eyeing a comeback. The decline capped a blowout 2024 for US stocks, which saw the S&P 500 post two years in a row of over-20% gains – something it hasn’t achieved in almost three decades. Investors are now debating what role the “Magnificent Seven” stocks will play in powering markets in 2025.
Leave a Reply