US stocks rally to shake off new year jitters amid light trading

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Wall Street stocks rose on Friday, ending the first week of 2025 on an upbeat note, amid fresh signs of manufacturing stability that halted several days of losses.

The S&P 500 closed the day 1.3 percent higher, posting its biggest gain since Nov. 6 the following day. Donald TrumpVictory in the US elections. The benchmark index’s gain on Friday also ended five consecutive days of losses, the longest such streak since April.

The tech-heavy Nasdaq Composite added 1.8 percent, helped by a more than 8 percent gain in electric car maker Tesla, whose shares fell a day earlier after the announcement. the first decline in annual car supplies Over a decade, semiconductor giant Nvidia is up more than 4 percent.

At the end of the week, which was shortened by New Year’s Day, profits were recorded, which could lead to thinner trading.

But the day’s share price changes also came after a fresh reading of US manufacturing activity beat consensus forecasts, boosting investor sentiment and as Trump ally Mike Johnson. was re-elected to the position of the Speaker of the House of Representatives of the US Congress.

“It’s really a combination. I would call it a potpourri of different factors,” said Christina Hooper, chief global markets strategist at Invesco. “First of all, we’ve seen some selling, and so at some point, I think investors are realizing there’s some buying. opportunities that arise when you have multiple days of sales.”

Meanwhile, Hooper added: “Today we got some good news in terms of production [figures] and I think that certainly sets a positive tone. We had a relatively smooth election in the House, which also contributed to a more positive mood.”

The ISM manufacturing purchasing managers’ index came in at 49.3 in December on Friday, below the 50 mark that marks an expansion but ahead of economists’ forecasts and up from November’s 48.4 reading.

“The S&P 500 saw a broad rally because [investors] Take comfort in the regular re-election of the Speaker of the US House of Representatives as it helps reduce political uncertainty,” said Dec Malarkey, CEO of SLC Management.

Referring to the group of big tech names that dominate the US stock market, he added that “The Magnificent Seven, in particular, remain resilient even when valuations are high. Investors are still confident that big spending.” [artificial intelligence] investment will pay dividends and provide first-mover advantage.”

Even after Friday’s sharp gains, the S&P and Nasdaq continued to post small losses for the week.

Invesco’s Hooper believed that “the overall environment is supportive of risk assets,” meaning that “we are likely to have more positive days than negative days” as the new year progresses, however. there could very well be more volatility,” he said.

“Let’s face it, there is more uncertainty and as we get closer and closer to January 20th. [the day of Trump’s inauguration] I think there will be more question marks about what might come from the new administration.”

Additional reporting by Will Schmidt