Investors optimistic about US stock momentum in mid-January; concerns about January market performance

From Investing.com: 2024-12-27 16:51:02

Investors are optimistic about the momentum of U.S. stocks going into mid-January, following a strong 2024 performance. S&P rose 25% and Nasdaq over 31% last year. Concerns about market performance in January have led to some profit taking. Santa Claus rally has historically boosted S&P gains in late December and early January.

Despite a Friday selloff, S&P and Nasdaq saw gains in the last five trading sessions. Upward momentum in 2025 depends on factors like U.S. employment data on Jan. 10 and fourth-quarter earnings reports. Investors anticipate 10.33% earnings per share growth this year, with hopes for a boost from Trump’s policies.

Trump’s inauguration on Jan. 20 could introduce market uncertainties. His proposed policies on tariffs, immigration, and regulations could impact corporate profits and consumer costs. Federal Reserve’s monetary policy meeting in late January may challenge U.S. stocks rally. However, the crypto market is expected to benefit from the Trump administration’s policies.

Bitcoin surged above $107,000 this month on hopes of friendlier Trump policies. Market analysts are closely watching the impact of Trump’s policies on global currency markets, such as the euro, Mexican peso, Canadian dollar, and the . The Fed’s interest rate cuts and inflation outlook could also influence stock market performance in 2025.



Read more at Investing.com: Trump’s first actions and job data to test market in January By Reuters