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 as **tech stocks struggled**, but the market still posted strong weekly gains. The **Nasdaq and Dow Jones** also rose significantly, partly fueled by optimism after **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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## **1. Historical Background: How Did We Get Here?**

- **The Trump Effect (2016-2020):** During Trump’s first term, markets saw big swings—tax cuts boosted stocks, but trade wars caused volatility.

- **Biden Years (2020-2024):** The market recovered from COVID-19, but inflation and high interest rates pressured tech stocks.

- **2024 Election Impact:** Trump’s victory brought back expectations of **business-friendly policies**, including tax cuts and deregulation, lifting investor confidence.

**Why Tech Slumped on Jan. 24?**

- Rising bond yields made high-growth tech stocks less attractive.

- Some investors took profits after a strong rally earlier in the week.

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## **2. General Public Opinion: What Are People Saying?**

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

- **"Markets love stability and pro-business policies."** Trump’s return is seen as good for corporate profits.

- **"The weekly gains show resilience."** Despite a dip, the S&P 500, Nasdaq, and Dow all had strong weeks.

- **"Tech will bounce back."** Many believe this is just a short-term pullback.

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

- **"Tech is overvalued."** Some worry that AI and big tech stocks are in a bubble.

- **"Political uncertainty remains."** Trump’s policies could lead to trade tensions or market swings.

- **"Interest rates are still a risk."** If the Fed doesn’t cut rates soon, stocks could struggle.

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## **3. Counterarguments: Is the Optimism Justified?**

### **Yes, Because...**

- Historically, markets tend to rise in election years.

- Trump’s policies (tax cuts, deregulation) could boost earnings.

- The economy is still growing, avoiding a recession.

### **No, Because...**

- Past performance doesn’t guarantee future results.

- Geopolitical risks (China tensions, Middle East conflicts) could hurt markets.

- If inflation stays high, the Fed may keep rates elevated longer.

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

### **Short-Term Outlook**

- **Volatility expected:** Markets may swing on Fed decisions and political news.

- **Tech could rebound** if earnings reports are strong.

### **Long-Term Lessons**

- **Diversification matters:** Don’t put all your money in one sector (like tech).

- **Politics moves markets:** Elections and policy changes create opportunities and risks.

- **Stay calm during dips:** The market has recovered from bigger crashes before.

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### **Final Thought**

While the S&P 500 dipped slightly on Jan. 24, the overall trend remains positive. Investors are betting on a strong economy under Trump, but risks remain. The key takeaway? **Stay informed, stay diversified, and don’t panic over short-term moves.**

Would you buy the dip in tech stocks, or wait for more clarity? Let us know in the comments! 🚀📉📈