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Dad pranks class president daughter while picking up from school
You are watching: Investors grapple with big risks, sending stocks lower to start 2025
A dad took his daughter’s new role as class president very seriously as he poses as her secret service while picking her up for school in Orlando, Florida.
USA Today
Markets seesawed on the first trading day of 2025 as investors grappled with big questions ahead of a change of power in Washington.
See more : Stock Market Today: Dow Drops Over 300 Points Amid Tech Stock Rout
U.S. stocks jumped in early trading, but by early afternoon the S&P 500 and Dow Jones Industrial indexes were down more than half a percent. The Nasdaq Composite Index, which contains more technology stocks, was off 127 points, or about 0.7%.
“The market can’t get a firm grip,” said Michael Grant, co-CIO and head of long/short strategies at Calamos Investments, which has $40 billion in assets.
“It’s easy to imagine that the second coming of Trump will amplify these extraordinary premiums that exist for U.S. risk assets,” Grant told USA Today. “The conundrum is that this is actually going on for a long time.”
Even though December’s “Santa Rally” fizzled, the S&P 500 gained more than 23% in 2024. Stocks have notched double-digit annual returns most years in the decade, thanks largely to strong corporate profits in many sectors of the economy and expansive fiscal policy.
Some unease about whether those trends can continue may be starting to creep into the financial markets, Grant said.
“Investors need to scale back their expectations,” he added. “They need to avoid areas like Tesla, the AI narrative, and excessively valued growth stocks. Because that’s where the real risk lies, particularly if interest rates stay higher for longer in 2025, which is one possible scenario.”
Shares of Tesla, Inc. were down nearly 7% in the afternoon after the electric-car company announced quarterly and full-year 2024 delivery numbers that were slightly lower than those in 2023. Investors may also have been reacting to the New Year’s Day explosion of a Tesla Cybertruck, which killed the driver, and is under investigation.
Investors are also digesting the likelihood that the Federal Reserve will have to scale back its interest rate cuts – if not reverse course and hike rates at some point in 2025. The 10-year U.S. Treasury note has gained nearly a full percentage point since mid-September, when the central bank delivered its first rate cut in four years. Bonds lose their value, making yields rise, when inflation is higher.
Source link https://www.usatoday.com/story/money/markets/2025/01/02/stocks-lower-to-start-2025/77402056007/
Source: https://incomestatements.info
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