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 record high**, dragged down by a slump in tech stocks. However, the market still posted strong weekly gains, along with the **Nasdaq and Dow Jones**, following **Donald Trump’s return to the White House**.

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

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

- **Post-Pandemic Recovery (2020-2024):** After the COVID-19 crash in 2020, markets surged due to stimulus, low interest rates, and tech growth.

- **Inflation & Rate Hikes (2022-2024):** The Fed raised interest rates to fight inflation, causing market volatility.

- **Election Impact (2024):** Trump’s victory in November 2024 led to a market rally, as investors expected deregulation and tax cuts.

- **Tech Boom & Bust:** Big tech stocks (like Apple, Microsoft, Nvidia) drove markets for years but faced recent pullbacks due to high valuations.

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

- **S&P 500:** Closed **0.5% lower** but still up **3% for the week**.

- **Nasdaq:** Fell **1.2%** (tech weakness) but gained **4% weekly**.

- **Dow Jones:** Slipped **0.3%** but rose **2.5% for the week**.

**Why the Drop?**

- **Tech stocks declined** after mixed earnings reports.

- **Profit-taking** after a strong rally earlier in the week.

**Why the Weekly Gain?**

- **Trump’s policies:** Investors expect business-friendly moves (tax cuts, deregulation).

- **Rate cut hopes:** The Fed signaled possible rate cuts later in 2025.

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

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

- **"Markets love stability"** – Trump’s return reduces political uncertainty.

- **"Tech will bounce back"** – AI and innovation still drive long-term growth.

- **"Lower rates ahead"** – Cheaper borrowing could boost stocks.

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

- **"Tech is overvalued"** – Some fear a bigger correction is coming.

- **"Policy risks remain"** – Trade wars or regulatory changes could hurt markets.

- **"Recession fears linger"** – If the economy slows, stocks could drop.

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

Some analysts warn:

- **Short-term hype:** Markets may be too optimistic about Trump’s impact.

- **Earnings matter:** If companies don’t deliver strong profits, stocks could fall.

- **Geopolitical risks:** Conflicts or trade wars could disrupt markets.

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## **Implications: What Does This Mean for the Future?**

### **Possible Outcomes**

✅ **Continued Rally:** If Trump’s policies boost growth, stocks could keep rising.

⚠️ **Volatility Ahead:** Tech corrections and Fed decisions may cause swings.

❌ **Downturn Risk:** If inflation returns or growth slows, a drop is possible.

### **Lessons Learned**

- **Markets move on politics** – Elections have short-term impacts.

- **Tech drives trends** – But high valuations can lead to pullbacks.

- **Diversify** – Don’t bet everything on one sector.

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## **Final Thoughts**

The market had a **strong week but a shaky day**, showing how quickly sentiment can shift. While Trump’s return boosted confidence, risks remain—especially in tech.

**What to watch next:**

- **Fed rate decisions**

- **Tech earnings reports**

- **New policies from the White House**

Stay informed, stay diversified, and don’t panic over daily swings!

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*Sources: MarketWatch, Bloomberg, CNBC*