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 Industrial Average** also rose significantly, fueled by optimism after **Donald Trump’s return to the White House**.

Here’s a breakdown of 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 surged due to corporate tax cuts, deregulation, and strong economic growth. However, trade wars and political uncertainty also caused volatility.

- **Biden’s Presidency (2020-2024):** Markets saw mixed performance—tech boomed early, but inflation, interest rate hikes, and geopolitical tensions weighed on stocks.

- **2024 Election Impact:** Trump’s victory in November 2024 led to a market rally, as investors expected business-friendly policies, tax cuts, and reduced regulation.

**Key Events Leading to Jan. 24, 2025:**

- **Tech Slump:** Big tech companies (Apple, Microsoft, Nvidia) dipped due to profit-taking and concerns over new regulations.

- **Weekly Gains:** The S&P 500, Nasdaq, and Dow all rose over the week, driven by financial and industrial stocks.

- **Policy Expectations:** Investors bet on Trump’s promises of tax reforms and infrastructure spending.

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

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

- **"Markets Love Stability"** – Many believe Trump’s return means pro-business policies, boosting stocks.

- **"Tech Will Rebound"** – Some see the dip as temporary, expecting AI and innovation to drive future growth.

- **"Strong Weekly Gains Show Confidence"** – The overall market rise suggests investors are betting on economic growth.

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

- **"Tech Weakness is a Warning"** – If big tech keeps falling, it could drag down the whole market.

- **"Political Risks Remain"** – Trade wars, government shutdowns, or policy delays could hurt stocks.

- **"Overheated Market?"** – Some worry stocks are rising too fast, leading to a potential correction.

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## **3. Counterarguments: Why Some Are Skeptical**

### **Criticism of Trump’s Economic Policies**

- **"Tax Cuts Help Corporations, Not Workers"** – Critics argue past tax cuts boosted stock buybacks but not wages.

- **"Deregulation Could Backfire"** – Less oversight might lead to financial risks (like the 2008 crisis).

- **"Trade Wars Hurt Growth"** – Tariffs under Trump’s first term disrupted supply chains and raised costs.

### **Doubts About the Tech Sector**

- **"Valuations Are Still Too High"** – Even after the slump, some tech stocks may be overpriced.

- **"AI Hype vs. Reality"** – If AI investments don’t pay off, tech earnings could disappoint.

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## **4. Implications: What Could Happen Next?**

### **Possible Positive Outcomes**

- **Stronger Economy:** If Trump’s policies boost jobs and growth, markets could keep rising.

- **Tech Recovery:** If interest rates stabilize, tech stocks may rebound.

- **Infrastructure Boom:** New spending on roads, energy, and manufacturing could lift industrial stocks.

### **Potential Risks**

- **Market Correction:** If optimism fades, a 5-10% drop could happen.

- **Geopolitical Tensions:** Conflicts (China, Russia, Middle East) could disrupt markets.

- **Inflation Fears:** If prices rise too fast, the Fed may hike rates again, hurting stocks.

### **Lessons for Investors**

✔ **Diversify** – Don’t put all your money in tech; spread it across sectors.

✔ **Stay Informed** – Political changes can move markets quickly.

✔ **Think Long-Term** – Short-term dips happen, but history shows markets tend to rise over time.

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## **Final Thoughts**

The stock market had a mixed day on **Jan. 24, 2025**, with tech dragging down the S&P 500, but the overall trend remains positive. Investors are hopeful about Trump’s policies but wary of risks like inflation and tech volatility.

**Key Takeaway:** Markets move on both facts and emotions—staying calm and informed is the best strategy.

Would you buy stocks now or wait? Let us know in the comments! 🚀📉