Stock Market Recap: Why Was the Market Up Today? – January 13, 2025

Major Indexes Close Mixed as Investors Weigh Rate Cut Outlook

The U.S. stock market ended Monday, January 13, 2025, with mixed results as investors grappled with shifting expectations for interest rate cuts and upcoming economic data. The Dow Jones Industrial Average and S&P 500 managed to eke out gains, while the Nasdaq Composite faced pressure from technology stocks.

Market Performance Breakdown

S&P 500 (^GSPC): Closed at 5,836.22, up 9.18 points or 0.16%
Dow Jones Industrial Average (^DJI): Finished at 42,297.12, gaining 358.67 points or 0.86%
Nasdaq Composite (^IXIC): Ended at 19,088.10, down 73.53 points or 0.38%
Russell 2000 (^RUT): Closed at 2,194.40, up 5.17 points or 0.24%

The S&P 500 staged a remarkable comeback, reversing from an earlier 0.9% decline to close in positive territory. This turnaround marked its largest intraday reversal since September 2024, demonstrating resilience in the face of initial selling pressure.

Why Was the Market Up Today?

The market’s mixed performance can be attributed to several factors:

1. Rate Cut Expectations: Recent strong economic data, particularly the robust payrolls report, has led investors to scale back expectations for Federal Reserve rate cuts in 2025. Markets now anticipate only 27 basis points of cuts for the entire year, with the terminal rate projected around 4.0%.

2. Sector Rotation: While technology stocks faced headwinds, other sectors such as healthcare and energy saw gains, contributing to the Dow’s outperformance.

3. Treasury Yields: The 10-year Treasury yield reached a 14-month high of 4.79%, impacting equity valuations and sector performance.

4. Oil Prices: Crude oil prices surged to four-month highs, with Brent jumping to $81.19 per barrel and U.S. crude reaching $78.07, boosting energy sector stocks.

Major Stock News

Several stocks made significant moves on Monday:

Intra-Cellular Therapies (ITCI): Surged 34.07% on positive drug trial results.
Trump Media & Technology Group (DJT): Climbed 21.52% amid increased investor interest.
Moderna (MRNA): Plummeted 16.80% following disappointing vaccine sales projections.
NVIDIA (NVDA): Fell 1.97% as tech stocks faced pressure from rising yields and AI chip export restrictions.
Tesla (TSLA): Gained 2.17%, bucking the trend in the tech sector.

Upcoming Market Events

Investors should keep an eye on these key events in the coming days:

1. Consumer Price Index (CPI) Release: Wednesday’s CPI data will be crucial, with any core inflation rise above 0.2% potentially dampening hopes for rate cuts.

2. Federal Reserve Speeches: At least five Fed officials are scheduled to speak this week, including New York Fed President John Williams on Wednesday.

3. Earnings Season Kickoff: Major banks including Citigroup, Goldman Sachs, and JPMorgan will report earnings on Wednesday, setting the tone for the Q4 2024 earnings season.

4. Chinese Economic Data: Trade figures for December are due later this week, followed by GDP, retail sales, and industrial output data on Friday.

#h2#Market Outlook#/b#

As we move further into 2025, the stock market faces a complex landscape. The interplay between strong economic data, inflation concerns, and potential policy shifts will likely drive market sentiment. Investors should remain vigilant, particularly as the earnings season unfolds and provides insights into corporate performance amidst these macroeconomic challenges.

The coming days will be critical in shaping market direction, with the CPI data and Fed speeches potentially influencing expectations for monetary policy. As always, diversification and a focus on long-term investment goals remain prudent strategies in navigating these dynamic market conditions.

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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