US Indexes Rallied on Tech Rally, But Policy Outlook Limited Their Upside
Go Wire
January 7, 2025
GoGPT Summarizes Articles
On Monday (January 6th), tech stocks rebound pushed most of the indexes in the US market higher. The market focused on NVIDIA CEO Jensen Huang's speech and Trump's tariff policies.
The S&P 500 index closed up 0.55% on Monday. The NASDAQ Composite index surged 1.24%. The Dow Jones index dipped 0.06%.
In anticipation of Huang's speech, Nvidia $NVDA closed up 3.43% on Monday, with its shares reaching a new all-time peak of $152.15.
Its CEO Jensen Huang spoke at the Consumer Electronics Show in Las Vegas on Monday at 6:30 p.m. PT (10:30 am SGT Tuesday). Nvidia shares outpaced the trading range for much of late 2025 because investors expected to understand more about NVIDIA's upcoming Blackwell AI chip from the speech. They also expect Huang to announce Nvidia's next-generation product line of PCE gaming cards. As a leader in the tech industry, Nvidia's moves partially determine tech stocks performance.
Tech stocks rose collectively on Monday, recovering some of their previous losses.
Microsoft Corporation $MSFT closed up 1.06%. Amazon.com Inc $AMZN closed 1.53% higher. Meta Platforms Inc $META soared 4.23%. Alphabet Inc $GOOGL closed up 2.65%.
However, Trump's statement denying reported broad tariffs and declaring that he would only impose tariffs on targeted industries dampened the market's gains a little.
Uncertainty over Trump's policies made stocks volatile, as he was widely believed to implement policies that could underpin inflation and disrupt global trade. The prospect of monetary tightening and Trump's policy uncertainty made investors constantly anxious, potentially preventing stocks from regaining their losses in the end of 2024.
The S&P 500 closed 2024 down 2.5%, skipping the usual year-end Santa Claus rally. The BofA claimed that in years without this rally, the probability of a January loss is 52%, with an average drop of 0.29%. A January decline could lead to a bearish “January Barometer,” signaling a hard year for stocks.
January's market performance will set the tone for a tumultuous year, especially as the presidential cycle begins in 2025, which traditionally has mixed results.
#2025 Investment Outlook: What's Ahead?#$Nvidia Corp(NVDA)#$Amazon.Com Inc(AMZN)#$Meta Platforms Inc. Class A Common Stock(META)#$Alphabet Inc. Class A Common Stock(GOOGL)#usmarket