Stock Market on Jan. 24, 2025: S&P 500 ends below record high as tech slumps, but posts big weekly gain along with Nasdaq and Dow after Trump's return to White House - MarketWatch

Stock Market on Jan. 24, 2025: S&P 500 ends below record high as tech slumps, but posts big weekly gain along with Nasdaq and Dow after Trump's return to White House - MarketWatch


# **Stock Market Update: Jan. 24, 2025 – S&P 500 Ends Below Record High as Tech Slumps, But Posts Big Weekly Gains After Trump’s Return to White House**

The stock market had a mixed day on **January 24, 2025**, with the **S&P 500 closing slightly below its record high** due to a slump in tech stocks. However, the **Dow Jones, Nasdaq, and S&P 500 all posted strong weekly gains** following **Donald Trump’s return to the White House**. Investors reacted to shifting policies, economic signals, and sector rotations.

Let’s break down what happened, why it matters, and what people are saying.

---

## **Historical Background: How We Got Here**

- **Post-2020 Market Trends**: After the COVID-19 crash in 2020, markets saw a historic rally fueled by stimulus, low interest rates, and tech growth.

- **2022-2024 Volatility**: Rising inflation, Fed rate hikes, and geopolitical tensions caused big swings, but markets recovered in late 2023 and 2024.

- **Election Impact**: Trump’s 2024 victory brought expectations of **tax cuts, deregulation, and pro-business policies**, boosting investor confidence.

- **Tech’s Roller Coaster**: Big tech stocks (Apple, Amazon, Microsoft) drove markets for years but faced pressure in early 2025 due to antitrust concerns and profit-taking.

---

## **What Happened on Jan. 24, 2025?**

- **S&P 500**: Closed **0.3% lower**, just under its all-time high.

- **Nasdaq**: Fell **1.1%** as tech stocks declined.

- **Dow Jones**: Rose **0.4%**, helped by industrial and financial stocks.

- **Weekly Gains**: All three indexes were up **over 3%** for the week, the best start to a year since 2019.

### **Why Did Tech Struggle?**

- Profit-taking after a strong rally.

- Fears of stricter regulations under the new administration.

- Rising bond yields made growth stocks less attractive.

### **Why Did the Market Still Rise Overall?**

- Investors expect **Trump’s policies (tax cuts, deregulation) to boost earnings**.

- Strong economic data (low unemployment, steady GDP growth).

- Money rotated from tech to banks, energy, and small-cap stocks.

---

## **Public Opinion: What Are People Saying?**

### **Bullish Views (Optimistic Investors)**

- "Trump’s business-friendly policies will fuel another market boom."

- "The economy is strong, and corporate profits are rising."

- "Tech dips are normal—long-term growth is still solid."

### **Bearish Views (Cautious Investors)**

- "The rally is overdone; markets are due for a correction."

- "Tech struggles could spread to other sectors."

- "Political uncertainty (trade wars, regulations) could hurt stocks."

---

## **Counterarguments: Is the Rally Sustainable?**

### **Yes, Because…**

- Corporate tax cuts could boost earnings.

- Deregulation may help banks and energy stocks.

- Consumer spending remains strong.

### **No, Because…**

- High valuations make stocks expensive.

- Geopolitical risks (China tensions, Middle East conflicts) persist.

- If the Fed keeps rates high, borrowing costs could hurt growth.

---

## **Implications: What Does This Mean for Investors?**

### **Short-Term Outlook**

- More volatility as markets adjust to new policies.

- Sector rotation (away from tech, into industrials/financials) may continue.

### **Long-Term Lessons**

- **Diversification matters** – Don’t put all your money in one sector.

- **Politics affect markets** – Elections and policies drive trends.

- **Tech is cyclical** – Even the biggest companies face ups and downs.

### **What Should You Do?**

- Stay diversified across sectors.

- Keep an eye on Fed policy and earnings reports.

- Avoid panic selling—focus on long-term goals.

---

## **Final Thoughts**

The market’s mixed performance on **Jan. 24, 2025**, shows that while optimism is high, risks remain. Tech’s slump doesn’t mean a crash is coming—it could just be a healthy pullback. With Trump back in office, investors are betting on growth, but surprises (good or bad) could change the game.

**Key Takeaway**: Markets move on news, trends, and emotions. Stay informed, stay patient, and don’t let daily swings derail your strategy.

---

*Sources: MarketWatch, Bloomberg, CNBC*

Would you like a deeper dive into any specific part? Let me know!

Comments

Post a Comment

Popular posts from this blog

Fairfax County Public Schools superintendent silent about a massive data breach by a tech vendor, PowerSchool - Fairfaxtimes.com

Fairfax County Public Schools superintendent silent about a massive data breach by a tech vendor, PowerSchool - Fairfaxtimes.com # Fairfax County Public Schools Superintendent Silent About Massive Data Breach by Tech Vendor PowerSchool In recent weeks, Fairfax County Public Schools (FCPS) has found itself at the center of a growing controversy. A massive data breach involving PowerSchool, a widely used tech vendor for student information systems, has left parents, students, and staff concerned about the safety of their personal information. Despite the severity of the situation, the superintendent of FCPS has remained notably silent, raising questions about transparency and accountability. This article explores the historical background, public opinion, counterarguments, and implications of this issue. --- ## Historical Background: How Did We Get Here? - **The Rise of EdTech in Schools**: Over the past decade, schools across the U.S. have increasingly relied on technology to manage stu...
Read more

This Artificial Intelligence (AI) Company Gained $2 Trillion in Value Last Year, and Wall Street Thinks It Could Be Headed Much Higher in 2025 - Yahoo Finance

This Artificial Intelligence (AI) Company Gained $2 Trillion in Value Last Year, and Wall Street Thinks It Could Be Headed Much Higher in 2025 - Yahoo Finance # This AI Company Gained $2 Trillion in Value Last Year, and Wall Street Thinks It Could Be Headed Much Higher in 2025 Artificial Intelligence (AI) has been one of the most transformative technologies of the 21st century. Over the past few years, AI companies have seen explosive growth, with one particular company standing out: it gained a staggering $2 trillion in value last year alone. Wall Street analysts are now predicting that this company could soar even higher by 2025. But how did we get here, and what does this mean for the future? Let’s break it down. --- ## Historical Background: The Rise of AI ### Early Days of AI - **1950s-1980s**: AI research began in the 1950s, with early pioneers like Alan Turing and John McCarthy laying the groundwork. However, progress was slow due to limited computing power and data. - **1990s-2...
Read more

Stock Market on Jan. 24, 2025: S&P 500 ends below record high as tech slumps, but posts big weekly gain along with Nasdaq and Dow after Trump's return to White House - MarketWatch

Stock Market on Jan. 24, 2025: S&P 500 ends below record high as tech slumps, but posts big weekly gain along with Nasdaq and Dow after Trump's return to White House - MarketWatch # **Stock Market Update: Jan. 24, 2025 – S&P 500 Ends Below Record High as Tech Slumps, But Posts Big Weekly Gains** On January 24, 2025, the **S&P 500 closed slightly below its all-time high**, dragged down by a slump in tech stocks. However, the market still posted **strong weekly gains**, with the **Nasdaq and Dow Jones Industrial Average also rising sharply**. The rally was fueled by optimism after **Donald Trump’s return to the White House**, as investors bet on potential policy changes. Let’s break down what happened, why it matters, and what people are saying. --- ## **1. Historical Background: How We Got Here** - **Post-Pandemic Boom (2020-2024):** After the COVID-19 crash in 2020, markets surged due to stimulus, low interest rates, and tech growth. The S&P 500 and Nasdaq hit multi...
Read more