From Nasdaq: 2025-02-03 11:25:14

In January, U.S. equities rose with the S&P outperforming and small-caps rebounding. Treasuries and Gold saw gains, while concerns over supply disruptions and tariffs on oil lingered. AI-related stocks faced a selloff due to China’s DeepSeek model. The Fed held rates steady, with no expected cuts until June. Economic data showed mixed results, with strong job growth but cooling inflation trends.

Earnings season started off mixed, with 77% of companies reporting EPS above estimates. Financials and Communication sectors had positive surprises, while Industrials lagged. The blended earnings growth rate for Q4 2024 is currently 13.2%, the highest in three years. Revenues were slightly below estimates, with Financials and Consumer Discretionary leading in positive surprises.

Looking ahead to February, the focus will shift to the conclusion of earnings season and key economic data releases. With the Fed on hold, investors will closely monitor any developments on tariffs and retaliatory measures. February historically has a modest average return, but in 2024 it was the second-best performing month. Investors are advised to seek advice from a securities professional for investment decisions.



Read more at Nasdaq:: January 2025 Review and Outlook