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 as **tech stocks slumped**, 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**.

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

---

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

- **The Trump Effect (2017-2021):** During Trump’s first term, markets surged due to **tax cuts, deregulation, and pro-business policies**. However, his trade wars and unpredictable tweets also caused volatility.

- **Biden’s Presidency (2021-2025):** Markets saw mixed performance—strong tech growth but also inflation, rate hikes, and geopolitical tensions.

- **Trump’s 2024 Election Win:** Investors initially reacted with caution, but his promises of **lower taxes and reduced regulations** boosted market confidence in early 2025.

---

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

- **S&P 500 (-0.3%)** dipped after a record high but still gained **2.5% for the week**.

- **Nasdaq (-1.1%)** fell due to a **tech slump** (Apple, Microsoft, and Nvidia dropped).

- **Dow Jones (+0.4%)** rose, led by industrial and financial stocks.

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

- Rising bond yields made **growth stocks (like tech) less attractive**.

- Some investors shifted money to **industrials and banks**, expecting Trump’s policies to favor them.

### **Why the Weekly Gains?**

- **Trump’s pro-business agenda** (tax cuts, deregulation) boosted market optimism.

- Strong earnings from **some sectors (energy, finance)** offset tech weakness.

---

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

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

- "Trump’s return means **lower taxes and stronger markets**—just like 2017!"

- "The economy will grow faster with **less regulation** on businesses."

- "Weekly gains show **resilience**—this is just a small pullback before another rally."

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

- "Tech is struggling—**AI and chip stocks** could face more pressure."

- "Trump’s trade wars could **hurt global markets** like last time."

- "The market is **overreacting**—politics shouldn’t drive long-term investing."

---

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

### **Yes, Because…**

- Corporate profits are still strong.

- Trump’s policies could **boost manufacturing and energy stocks**.

- The Fed might **cut interest rates later in 2025**, helping stocks.

### **No, Because…**

- Tech is a **huge part of the market**—if it keeps falling, the rally could fizzle.

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

- Inflation could **come back**, forcing more rate hikes.

---

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

### **Short-Term Outlook**

- **Volatility may continue** as markets adjust to Trump’s policies.

- **Tech investors should watch bond yields**—if they rise further, tech could keep falling.

### **Long-Term Lessons**

- **Politics moves markets**, but **earnings and economic data matter more** in the long run.

- **Diversification is key**—don’t bet everything on one sector.

- **Stay calm during swings**—big weekly gains can quickly reverse.

---

## **Final Thoughts**

The market had a **mixed day but a strong week**, showing that investors are **cautiously optimistic** about Trump’s return. While tech took a hit, other sectors benefited.

**Key Takeaway:** Markets react to politics, but **smart investors focus on fundamentals**—strong companies, good valuations, and long-term trends.

Would you buy the dip in tech, or bet on industrials? Let us know in the comments!

---

*Disclaimer: This is not financial advice. Always do your own research before investing.*

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