Weekly Market Report (January 26, 2025) - Insights and Forecasts
Dive into the market analysis for January 26, 2025, covering SPY, QQQ, IWM, and the week’s key economic data. Stay ahead with expert insights and forecasts.
Weekly Market Report for January 26, 2025
This week was significant for the U.S. and the stock market as Donald J. Trump was inaugurated as the 47th President on Monday, which coincided with Martin Luther King, Jr. Day, keeping the markets closed. When trading resumed on Tuesday, stocks continued their upward trend, driven by Trump's declaration of a national energy emergency and executive orders. A key market-moving event was his decision not to impose tariffs on China, easing investor concerns. Instead, he suggested a 25% tariff on goods from Canada and Mexico starting February 1. Additionally, the announcement of a $500 billion AI infrastructure project, "Stargate," involving OpenAI, SoftBank, and Oracle, further boosted investor confidence.
Stocks climbed higher on Wednesday, led by strong earnings from Netflix (NFLX), Procter & Gamble (PG), and Travelers (TRV), pushing the S&P 500 to record highs. On Thursday, President Trump, in a virtual address at the World Economic Forum in Davos, discussed pressuring OPEC and Saudi Arabia to lower oil prices, urging NATO countries to increase defense spending, and proposing tax incentives for companies manufacturing in the U.S. He also called for immediate interest rate cuts, challenging Federal Reserve Chair Jerome Powell. With the Federal Reserve meeting next week and major earnings reports from Apple, Microsoft, Meta, Amazon, and Tesla, investors are anticipating more market-moving events.
Overall, it was a good week for stocks. Major stock indices went up between 1.1% and 2.2%. Most sectors of the S&P 500 saw gains, with communication services rising the most (4.0%). The only sector that declined was energy (-2.9%), as oil prices dropped due to concerns about too much supply.
Meanwhile, the bond market stayed stable, which helped support stocks. The yield (interest rate) on the 2-year Treasury note remained at 4.27%, while the 10-year Treasury note increased slightly to 4.63%. The U.S. dollar also fell 1.7%, ending at 107.47.
Weekly Market Heatmap
Weekly Sector Performance
Looking Ahead to the Upcoming Week
Next week will be important, as the Federal Reserve (FOMC) meets on January 28-29 to discuss interest rates. While a rate cut is not expected, Trump’s comments have increased interest in the meeting.
Big companies like Apple (AAPL), Microsoft (MSFT), Meta (META), Amazon (AMZN), and Tesla (TSLA) will also report their earnings, which could impact the market. Additionally, the government will release key economic reports, including GDP (which measures economic growth) and inflation data.
Economic Events
Earnings Event
Market Health
The market is in a strong bullish trend, with more advancing stocks than decliners, positive short-term momentum (5DR & 10DR), rising S&P 500 levels, and positive breadth indicators, suggesting continued upside potential unless major reversals occur.
Broader Market - SPY, QQQ, IWM, MDY
The bullish momentum across large-cap (SPY, QQQ), mid-cap (MDY), and small-cap (IWM) indices suggest continued market strength, with a higher probability of further upside, provided no major macroeconomic headwinds emerge.
Watch List
will be shared 01/26…
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