Market Momentum Shifts as Investors Await Key Data
The US stock market is attempting to rebound from a sluggish start to 2025, with investors eagerly awaiting crucial manufacturing data and Tesla’s efforts to regain momentum. As of Friday, the S&P 500 has risen 0.6%, while the Dow Jones Industrial Average has seen a 0.5% increase. The tech-heavy Nasdaq Composite has led the charge, surging 0.8%.
The Elusive “Santa Claus” Rally
Today marks the final opportunity for the S&P 500 to stage a “Santa Claus” rally, a historical indicator of strong returns in January and throughout the year. However, hopes are dwindling after the benchmark suffered a five-session losing streak, its longest since April. The S&P 500 and Dow are both poised to end the holiday-shortened week with losses exceeding 1%, while the Nasdaq faces a weekly decline of nearly 2%.
Tesla’s China Sales Soar
Meanwhile, Tesla shares have edged up after the electric vehicle manufacturer reported record-high sales in China for 2024. This news comes on the heels of a 6% decline in Tesla’s stock on Thursday, triggered by its first yearly decline in global sales.
US Steel Takes a Hit
In other news, US Steel (X) stock has plummeted almost 8% after President Joe Biden blocked Japanese buyer Nippon Steel’s $14.9 billion takeover of the company. This move has sparked intense political opposition.
Manufacturing Data Takes Center Stage
Later today, an update on US manufacturing is expected to provide valuable insights into the health of the US economy. This data will likely influence the Federal Reserve’s decision on interest rates, with many wondering if the central bank will maintain its reluctance to cut rates.
Earnings and Economic News
In earnings news, JPMorgan (JPM) is in the spotlight after Wolfe Research upgraded the stock. Analyst Steven Chubak cited the bank’s potential to outperform universal broker/trust peers, driven by revised rate expectations and upside to 2026 consensus net interest income. JPM shares have risen about 1% in pre-market trading.
Other Key Stories
Other notable stories include the ISM manufacturing and ISM prices paid reports for December, which are expected to provide further insight into the state of the US economy.
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