01/08/2025 Summary of the US Stock Market

On January 8, 2025, the US stock market closed with mixed results as investors remained cautious ahead of the upcoming employment report. A successful $22 billion 30-year Treasury bond auction provided some relief, leading to a slight decline in Treasury yields.

 

Major Indices:

• S&P 500 Index: Increased by 0.2%, closing at 5,918.25.
• Dow Jones Industrial Average: Rose by 0.3%, ending at 42,635.20.
• Nasdaq Composite: Decreased by 0.1%, finishing at 19,478.88.
• 10-Year Treasury Yield: Fell by 2 basis points to 4.67%.

Market Influences:

• Investor Sentiment: With the employment report due on Friday, investors avoided making significant moves, leading to subdued market activity.
• Treasury Auction: The successful $22 billion 30-year Treasury bond auction eased concerns about rising yields, contributing to a slight decline in the 10-year Treasury yield.
• Federal Reserve Outlook: Minutes from the recent FOMC meeting revealed no major surprises, with officials maintaining a cautious approach to future rate cuts amid ongoing inflation risks.

Sector Highlights:

• Technology: NVIDIA's stock remained flat after a significant drop the previous day, while AMD shares declined following a downgrade by HSBC.
• Retail: Costco exceeded December same-store sales expectations, boosting investor confidence in the retail sector.
• Healthcare: InMode's stock fell after the company issued revenue guidance for 2025 that missed analyst expectations.

Expert Opinions:

• Tom Essaye (Sevens Report): "Investors are hoping for a 'Goldilocks' scenario with labor market cooling and moderating bond yields to support market stability."
• Mike Wilson (Morgan Stanley): "While market volatility may persist in the first half of 2025, conditions are expected to improve in the second half."
• Henry Allen (Deutsche Bank): "Historically, major stock market downturns are tied to recessions. Currently, there are no signs of an economic slowdown, with some leading indicators showing improvement."

Conclusion:

The US stock market exhibited mixed performance on January 8, 2025, as investors exercised caution ahead of key economic data releases. The successful Treasury auction provided some relief, while sector-specific developments influenced individual stock movements. Market participants are closely monitoring upcoming economic indicators to gauge future market direction.