Market Recap: Stocks Rally as Trump Returns to White House
Market Performance
On Monday, January 20, 2025, the U.S. stock market demonstrated resilience and optimism as Donald Trump returned to the White House for his second term. Despite the markets being closed for Martin Luther King Jr. Day, futures indicated a positive sentiment among investors.
Major Index Performance
The S&P 500 closed at 5996.66 points on Friday, January 17, showing a 0.999% increase. This upward trend reflects the market’s positive reaction to the incoming administration’s pro-business stance. The Nasdaq Composite and Dow Jones Industrial Average are also expected to open higher on Tuesday, following the holiday.
Magnificent Seven Stocks in Focus
The “Magnificent Seven” stocks continue to dominate market discussions:
1. Apple (AAPL): Shares bounced 1.2% on Friday, trading at $229.98. The stock is currently below its 50-day moving average and a flat base buy point of 237.49.
2. Microsoft (MSFT): The tech giant’s stock moved up 1.1% to $429.03, still below its 50-day level. Microsoft’s cloud computing business remains strong, despite guiding below views for the current quarter’s sales.
3. Nvidia (NVDA): The AI powerhouse rallied 3.3% to $137.71, testing resistance around its 50-day line. CEO Jensen Huang recently unveiled new AI initiatives at CES 2025, including Nvidia Cosmos, a computing platform for accelerating physical AI development.
4. Alphabet (GOOGL): Google’s parent company saw its stock rise 1.6% to $196.00.
5. Amazon (AMZN): The e-commerce giant’s stock performance remains strong, though specific figures for the day were not provided.
6. Meta Platforms (META): Facebook’s parent company continues to be a significant player in the tech sector.
7. Tesla (TSLA): The electric vehicle manufacturer’s stock remains volatile, with investors closely watching its performance amid Trump’s return to office.
Upcoming Market Events
Investors should keep an eye on these upcoming economic events:
1. January 22: German ifo Business Climate report
2. January 23: U.S. Unemployment Claims and Crude Oil Inventories data
3. January 24: Flash Manufacturing and Services PMI for major economies, including the U.S., Eurozone, and UK
Major Stock News
– Apple faces challenges with its iPhone 16 upgrade cycle, as analysts note a slower rollout of AI features.
– Microsoft continues to benefit from strong cloud computing business, despite guiding below views for the current quarter’s sales.
– Nvidia showcased new AI initiatives at CES 2025, including Nvidia Cosmos, signaling continued innovation in the AI sector.
– Tesla investors are watching closely as Trump returns to office, considering potential impacts on the electric vehicle market.
– Google (Alphabet) faces competition from AI rival Perplexity AI, which is reportedly seeking a merger with TikTok.
Market Outlook
As Trump begins his second term, investors remain cautiously optimistic about the potential benefits of his pro-business agenda. However, concerns persist regarding protectionist trade policies, particularly the stance on tariffs. The technology sector, especially AI-focused companies like Nvidia, continues to drive market performance.
The coming days will be crucial as the market digests the new administration’s initial actions and comments. Traders should remain vigilant for potential volatility, particularly in sectors sensitive to trade and regulatory changes.
In conclusion, the stock market enters this new political era with a mix of optimism and caution. The performance of the Magnificent Seven stocks, upcoming economic data releases, and the new administration’s policy implementations will be key factors shaping market trends in the coming weeks.
