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**

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 broader market still posted strong weekly gains, with the **Nasdaq and Dow Jones Industrial Average also rising** following former President Donald Trump’s return to the White House.

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

---

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

- **Post-Pandemic Boom (2020-2024):** After the COVID-19 crash in 2020, markets surged due to stimulus spending, low interest rates, and a tech-driven rally.

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

- **Election Impact (2024):** Trump’s victory in the 2024 election led to market optimism over expected deregulation and tax cuts, boosting stocks in late 2024.

- **Tech’s Roller Coaster:** Big tech companies (like Apple, Microsoft, Tesla) drove market gains for years but have recently faced pressure due to high valuations and regulatory concerns.

---

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

- **S&P 500 dipped slightly (-0.3%)**, ending just below its record high.

- **Tech stocks underperformed**, with giants like Nvidia and Meta falling over 2%.

- **Weekly gains were strong**—S&P 500 (+2.1%), Nasdaq (+3.4%), Dow (+1.8%)—fueled by optimism around Trump’s economic policies.

- **Banks and energy stocks rose**, as investors bet on deregulation and higher oil demand.

---

## **Public Opinion: Why Are People Optimistic?**

Many investors and analysts believe Trump’s return will help markets because:

✔ **Pro-Business Policies:** Expected tax cuts and deregulation could boost corporate profits.

✔ **Energy & Banking Boost:** Likely looser rules on fossil fuels and financial sectors.

✔ **Strong Economy:** Low unemployment and steady GDP growth support market confidence.

However, not everyone agrees.

---

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

❌ **Tech Worries:** Stricter trade policies (like U.S.-China tensions) could hurt big tech firms reliant on global supply chains.

❌ **Debt Concerns:** More tax cuts could increase the U.S. deficit, leading to long-term risks.

❌ **Market Overheating:** Some fear stocks are too expensive and due for a correction.

---

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

1. **Short-Term Rally Could Continue** – If Trump’s policies boost earnings, stocks may keep rising.

2. **Tech Volatility Ahead** – Regulatory battles and high valuations could keep pressure on tech stocks.

3. **Sector Shifts** – Energy, finance, and manufacturing might outperform while tech lags.

4. **Global Risks** – Trade wars or political instability could disrupt the rally.

### **Key Lesson:** Markets react to politics, but fundamentals (earnings, interest rates) still drive long-term trends.

---

## **Final Thoughts**

While the S&P 500 missed a new record on Jan. 24, the overall market remains strong. Investors are betting on a business-friendly White House, but risks—especially for tech—remain.

**What to Watch Next:**

- Federal Reserve interest rate decisions

- Corporate earnings reports

- New policy announcements from the Trump administration

Stay tuned—2025 could be another wild year for the markets! 🚀📉📈

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