Jamie Spencer
U.S. stocks climbed on Friday as Wall Street sought to recover from a shaky start to the year. Gains in tech stocks and positive market sentiment drove the major indexes higher, though the broader market remains on track to close the week in negative territory.
Market Performance
- S&P 500: Rose 1%, bouncing back from a five-session losing streak.
- Dow Jones Industrial Average: Gained 271 points, or 0.6%.
- Nasdaq Composite: Outperformed with a 1.4% increase.
Tech stocks were the standout performers, with Nvidia jumping 4%, Super Micro Computer soaring 6%, and Tesla rising 4%, leading the consumer discretionary group.
A Volatile Week for Equities
Friday’s gains followed a choppy session on Thursday when markets fell after an early rally. The recent string of losses has dampened hopes for the so-called “Santa Claus” rally—a historical trend where stocks typically rise during the final five trading days of one year and the first two of the next.
Despite this missed rally, many strategists remain optimistic about the market’s trajectory for 2025.
“The secular growth drivers that have been driving earnings growth and market gains over the last two years, I think they’re still on strong footing and will continue to drive those earnings gains,” said Jeremiah Buckley, portfolio manager at Janus Henderson Investors, during an appearance on CNBC.
Weekly Losses Persist
Even with Friday’s positive momentum, the major indexes are on track for weekly losses:
- Dow Jones: Down about 0.7% for the week.
- S&P 500: Also down 0.7%.
- Nasdaq Composite: Has dropped 0.9%.
Stock Moves Driven by Policy News
Certain individual stocks were affected by developments out of Washington, D.C.:
- U.S. Steel: Shares fell 5% after President Joe Biden announced plans to block its proposed acquisition by Nippon Steel.
- Alcohol Stocks: Declined following a U.S. surgeon general advisory on cancer risks associated with alcohol consumption.
Conclusion: A Balancing Act for 2025
Wall Street’s effort to shake off early-year volatility shows that optimism remains for the year ahead, underpinned by strong secular growth trends. However, geopolitical developments and policy decisions continue to influence market dynamics, leaving investors navigating a complex environment as they look toward the remainder of 2025.
