Market volatility persists with concerns about indexes and short interest, mixed performance for stocks discussed.

From Nasdaq.: 2025-01-03 13:13:11

The last day to say Happy New Year is today, per Larry David’s statute of limitations. Low-volume trading and a light news ticker led to a quieter week on Wall Street, with stocks struggling and a dramatic pivot lower on the first trading day of 2025. Concerns remain about the Cboe Volatility Index and S&P 500 short interest, despite stellar gains in 2024.

Natural gas prices hit two-year highs after a dire winter forecast, sending an ETF higher before sharply dropping. Electric vehicle delivery numbers for December were a lightning rod, with Tesla underperforming and a key competitor gaining ground. President Biden blocked the U.S. Steel-Nippon merger, causing U.S. Steel stock to plummet.

In the tech world, MicroStrategy bought more Bitcoin as it nears $100,000, while Warren Buffett doubled down on software stock VeriSign. Retail trading frenzy over Unity Software was sparked by Keith Gill, and Synaptics partnered with Alphabet to boost its internet of things network. Signals suggest investing in Chipotle and a media giant, while staying away from drugmaker Pfizer.

As the new year begins, signals are flashing bullish and bearish. Chipotle stock and a media giant may be good investments, while drugmaker Pfizer should be avoided. The SPX’s outsized gains in the past two years don’t guarantee a downward trend, and earnings season is gearing up with Walgreens Boots Alliance on the docket for next week.



Read more at Nasdaq.: New Year, Same Stock Market Volatility