U.S. Stock Market Summary for Thursday, January 30, 2025

 


1. Major Indices Performance:

  • S&P 500: Rose 0.53%, closing at 6,071.17.

  • Dow Jones Industrial Average: Increased 0.38%, ending at 44,882.13.

  • Nasdaq 100: Gained 0.45%, finishing at 21,508.12.

  • Russell 2000: Climbed 1.07%, closing at 2,307.45.

2. Market Overview:

The U.S. stock market closed higher today, despite experiencing some volatility as investors closely monitored earnings from major tech companies. Gains were trimmed late in the session following former President Trump’s comments about imposing a 25% tariff on Mexico and Canada.

Apple reported slightly better-than-expected revenue after the closing bell, but concerns over iPhone sales and weak performance in China led to fluctuations in its stock price.

The S&P 500 index advanced by 0.5%, with 80% of its components finishing higher. Small-cap stocks and cyclical sectors outperformed, fueled by strong consumer spending data.

Treasury Yields:

  • 2-year Treasury yield: Declined from 4.220% to 4.213%.

  • 10-year Treasury yield: Fell from 4.534% to 4.520%.

3. Earnings Reports and Sector Performance:

The equal-weighted S&P 500 index climbed 1%, indicating that the rally extended beyond just mega-cap tech stocks. While Big Tech continues to drive earnings growth, analysts project the slowest profit expansion in nearly two years.

  • Microsoft fell 6% due to weaker-than-expected cloud revenue.

  • Tesla rebounded despite disappointing earnings, as investors focused on its 2025 growth outlook.

  • Meta Platforms soared after posting stronger-than-expected results.

So far, 151 out of 500 S&P 500 companies have reported earnings this season, with an average 6.7% earnings surprise.

4. Economic Indicators & Fed Outlook:

  • Q4 U.S. GDP: Grew by 2.3%, reflecting a resilient economy.

  • Consumer Spending: Rose 4.2%, marking the first consecutive quarters of 3%+ growth since late 2021.

  • Jobless Claims: Unexpectedly declined, signaling continued labor market strength.

Analysts expect the Federal Reserve to maintain its current stance for several months before considering any policy adjustments. Given persistent inflation, the probability of a March rate cut has diminished.

Friday’s Personal Consumption Expenditures (PCE) price index will be closely watched as a key gauge of economic momentum in 2025.

Expert Commentary:

Carol Schleif (BMO Private Wealth): "The timing of the PCE report coincides with heightened market sensitivity to Big Tech earnings, AI trends, and Fed policy uncertainty, which could amplify volatility."

5. Notable Corporate Events:

  • Intel (INTC): Reported earnings below Q1 revenue expectations.

  • Visa (V): Beat earnings expectations.

  • Mastercard (MA): Delivered better-than-expected results.

6. Conclusion:

Despite economic and geopolitical uncertainties, the stock market ended on a positive note, driven by strong consumer spending and earnings optimism. Investors remain focused on upcoming macroeconomic data and the Federal Reserve’s next policy moves, which will play a crucial role in shaping market sentiment in the weeks ahead.

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