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

- **The Trump Presidency (2017-2021):** Trump’s first term saw major tax cuts, deregulation, and strong stock market performance, but also trade wars and high volatility.

- **Biden Era (2021-2025):** Markets faced inflation, interest rate hikes, and a tech slowdown, but also infrastructure spending and AI-driven rallies.

- **2024 Election Impact:** Trump’s victory in November 2024 led to a **market rally** on expectations of business-friendly policies, tax cuts, and deregulation.

**Why This Week Mattered:**

- Markets had been rising since the election, but **tech stocks (like Apple, Microsoft, and Nvidia) pulled back** on profit-taking.

- The **S&P 500 still gained over 3% for the week**, showing broader market strength.

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

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

- **"Trump’s policies will boost the economy."** Many expect tax cuts and fewer regulations, helping businesses.

- **"The rally is just getting started."** Some believe the market will keep climbing as confidence grows.

- **"Tech is taking a breather, but it’ll bounce back."** Long-term investors see the dip as a buying opportunity.

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

- **"The market is overreacting to politics."** Some worry stocks are rising too fast without real economic improvements.

- **"Tech is still overvalued."** Critics say AI hype has driven prices too high.

- **"Trade wars could return."** Trump’s history of tariffs could hurt global markets.

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

### **Reasons to Doubt the Rally**

- **Interest rates are still high**, making borrowing expensive.

- **Geopolitical risks (China tensions, wars)** could disrupt markets.

- **Corporate earnings haven’t caught up** with stock prices in some sectors.

### **Reasons to Stay Confident**

- **Strong jobs market** keeps consumer spending high.

- **AI and green energy investments** could drive future growth.

- **Trump’s pro-business stance** might boost corporate profits.

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## **Implications: What This Means for the Future**

### **Possible Outcomes**

✅ **Continued Growth:** If Trump’s policies work, stocks could keep rising.

⚠️ **Short-Term Volatility:** Political uncertainty and Fed decisions may cause swings.

🔻 **Tech Correction:** If earnings disappoint, tech stocks could fall further.

### **Lessons Learned**

- **Markets react strongly to political changes** – but fundamentals still matter.

- **Diversification helps** – while tech slumped, other sectors lifted the market.

- **Don’t panic over short-term dips** – long-term trends often prevail.

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## **Final Thoughts**

The stock market had a **strong week despite a tech slump**, showing resilience after Trump’s return. While some worry about a bubble, others see room for growth. The key takeaway? **Stay informed, diversify, and don’t let short-term moves dictate long-term strategy.**

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