(Bloomberg) — A rally in the world’s largest tech companies lifted stocks at the start of the first full trading week in 2025. The dollar trimmed losses as President-elect Donald Trump said his tariff plan won’t be pared back.
Most Read from Bloomberg
The group that has powered the equity bull market gained further traction on Monday, with Nvidia Corp. jumping 5% toward a record ahead of a speech from chief Jensen Huang. The yield on US 30-year bonds hit the highest since late 2023 as the market prepares for $119 billion of debt issuance this week. A Bloomberg gauge of the greenback pared a slide of as much as 1% after Trump denied his aides are considering narrowing his tariff plan so that it would only apply to limited critical imports.
“2025 should see a volatile market,” said Paul Nolte at Murphy & Sylvest Wealth Management. “The large swings may provide opportunities for both buyers and sellers in 2025.”
The trading desk of JPMorgan Chase & Co. led by Andrew Tyler says while risks to stocks’ fierce rally are mounting, a bearish downturn remains “extremely unlikely” amid strong economic growth. Gains in US stocks this year will be driven mainly by corporate earnings, according to Goldman Sachs Group Inc.’s David Kostin, who expects the S&P 500 to hit 6,500 by year-end.
“While I do anticipate heightened earnings volatility, I do think we will have a stronger earnings season as the macro data continues to inflect higher,” Tyler at JPMorgan said.
The S&P 500 rose 1.2% to around 6,015. The Nasdaq 100 added 1.6%. The Dow Jones Industrial Average gained 0.7%. A gauge of the “Magnificent Seven” megacaps” climbed 2.2%. Qualcomm Inc. introduced new chips designed to power computers capable of running the latest artificial intelligence software yet cost as little as $600. Citigroup Inc. led gains in banks on a bullish analyst call.
The yield on 10-year Treasuries advanced one basis points to 4.61%. The Bloomberg Dollar Spot Index fell 0.6%. The loonie rose as much as 1.2%, before paring gains. Justin Trudeau resigned as leader of Canada’s Liberal Party. Bitcoin pushed above $100,000.
Traders are also gearing up for Friday’s jobs report, which is expected to show employers tempered hiring to wrap up a year of moderating yet still-healthy labor market. The data is unlikely to alter the view of Federal Reserve officials that they can slow the pace of rate cuts amid a durable economy and inflation that’s dissipating only gradually.
Fed Governor Lisa Cook said Monday that policymakers can proceed more cautiously amid a sturdy labor market and lingering inflation pressures.
US stocks are becoming rate sensitive again, with breadth turning narrow after the US 10-year Treasury yield rose above 4.5%, according to Morgan Stanley strategists led by Michael Wilson.
“In order to see the return of a ‘good is good’ backdrop where hotter economic data drives upside in stocks even amid higher rates, we likely need to see more convincing evidence that animal spirits are inflecting and translating into stronger economic activity,” the strategists wrote.
Meantime, Lori Calvasina at RBC Capital Markets says investor exuberance in the stock market is starting to “self-correct” as a measure of sentiment and positioning fell into the year end.
“While this doesn’t tell us that the recent period of malaise in the stock market is over, we do think this deterioration in sentiment is actually good news for the stock market longer term,” they wrote.
Corporate Highlights:
-
American Airlines Group Inc. was upgraded to buy from hold at TD Cowen, Jefferies and Melius.
-
Uber Technologies Inc. said it entered into an accelerated share repurchase agreement with Bank of America to repurchase $1.5 billion of shares of Uber common stock, as part of its previously announced share repurchase authorization.
-
Walt Disney Co. and streaming provider FuboTV Inc. agreed to combine their online live TV businesses, creating the second-biggest digital pay-TV provider.
-
Paychex Inc. is in advanced talks to acquire Paycor HCM Inc., a smaller rival in payroll processing, according to people with knowledge of the matter.
-
Nippon Steel Corp. and United States Steel Corp. jointly filed lawsuits in a last-ditch effort to preserve the planned merger of the companies, which was blocked last week by President Joe Biden.
-
Hon Hai Precision Industry Co. reported faster-than-expected 15% revenue growth after the server assembly partner to Nvidia rode sustained demand for AI infrastructure.
Key events this week:
-
Eurozone CPI, unemployment, Tuesday
-
US job openings, trade, ISM services, Tuesday
-
Fed’s Thomas Barkin speaks, Tuesday
-
Eurozone PPI, consumer confidence, Wednesday
-
US ADP employment, Fed minutes, consumer credit, Wednesday
-
Fed’s Christopher Waller speaks, Wednesday
-
China CPI, PPI, Thursday
-
Eurozone retail sales, Thursday
-
US state funeral and national day of mourning for former President Jimmy Carter is a federal holiday, Thursday
-
Fed’s Patrick Harker, Thomas Barkin, Jeff Schmid speak and Michelle Bowman, Thursday
-
Japan household spending, leading index, Friday
-
US jobs report, consumer sentiment, Friday
Some of the main moves in markets:
Stocks
-
The S&P 500 rose 1.2% as of 11:26 a.m. New York time
-
The Nasdaq 100 rose 1.6%
-
The Dow Jones Industrial Average rose 0.7%
-
The Stoxx Europe 600 rose 0.9%
-
The MSCI World Index rose 1.2%
-
Bloomberg Magnificent 7 Total Return Index rose 2.2%
Currencies
-
The Bloomberg Dollar Spot Index fell 0.6%
-
The euro rose 0.8% to $1.0390
-
The British pound rose 0.8% to $1.2518
-
The Japanese yen fell 0.1% to 157.46 per dollar
Cryptocurrencies
-
Bitcoin rose 4% to $102,422.45
-
Ether rose 2.3% to $3,730.65
Bonds
-
The yield on 10-year Treasuries advanced one basis point to 4.61%
-
Germany’s 10-year yield advanced two basis points to 2.45%
-
Britain’s 10-year yield advanced two basis points to 4.61%
Commodities
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Andre Janse van Vuuren, Allegra Catelli, Julien Ponthus and Catherine Bosley.
Most Read from Bloomberg Businessweek
©2025 Bloomberg L.P.
EMEA Tribune is not involved in this news article, it is taken from our partners and or from the News Agencies. Copyright and Credit go to the News Agencies, email news@emeatribune.com Follow our WhatsApp verified Channel