Stock Market News- What’s Driving the Market in Early 2025?
Stock Market News– U.S. stock futures showed little movement Monday morning, as investors turned their attention to upcoming jobs data amid a shortened trading week. With the market still feeling the effects of a shaky start to the year, traders are now looking for fresh insights into the strength of the economy and the future direction of Federal Reserve interest rate policy.
U.S. Stock Futures Edge Higher Ahead of Key Economic Reports
Futures tied to the Dow Jones Industrial Average remained unchanged, while S&P 500 futures rose by 0.16%, and Nasdaq 100 futures gained 0.24%. This slight uptick in futures comes after a volatile trading week that saw the major indexes end the week in the red, despite some positive movements on Friday.
On Friday, the Dow Jones Industrial Average ended the day up by 339.86 points, or 0.8%, closing at 42,732.13. The S&P 500 climbed 1.26%, reaching 5,942.47, while the Nasdaq Composite advanced 1.77% to close at 19,621.68. Despite Friday’s gains, each of the major indexes posted losses for the week.
Investors are entering another shortened trading week with lingering concerns about the Federal Reserve’s interest rate projections and the overall health of the economy. The New York Stock Exchange will be closed on Thursday in observance of the death of former President Jimmy Carter.
Economic Data in Focus: Jobs Report and Fed Rate Projections
With the market already adjusting to the new year, traders are closely watching several key pieces of economic data set to be released this week. Among the most anticipated reports is the December jobs report, which will be released on Friday. This report is expected to provide important clues about the strength of the labor market and the overall economy. As one of the last major pieces of data before the next Federal Reserve meeting at the end of the month, the jobs report could play a crucial role in shaping investor sentiment.
Callie Cox, chief market strategist at Ritholtz Wealth Management, highlighted the importance of the data, saying, “Data shows us that unemployment is climbing and people are having a hard time finding jobs. There are cracks in hiring that could re-appear at any time.” She also pointed out that yields would be another area to watch, especially with the 10-year yield hovering around a high of 4.6%. “Jobs days have rattled bond investors in the past, so it’ll be important to watch yields too,” she added.
In addition to the jobs report, investors will be monitoring the Job Openings and Labor Turnover Survey (JOLTS) on Tuesday and the December ADP Employment Survey on Wednesday. These reports will provide a broader view of the labor market and job vacancies, which could offer additional insight into the economy’s resilience.
High Hopes for 2025, but Risks Remain
Despite recent volatility, many investors are optimistic about the year ahead. According to Cox, both individual investors and Wall Street analysts have high expectations for 2025. “Americans are unusually confident, CEOs are upbeat, and profit growth is expected to be the strongest in years,” she stated. However, Cox cautioned that expectations might be running high, especially after two years of strong market returns.
Cox noted, “This is a decent environment for the stock market … But after two years of 20%+ gains, we may be a little spoiled.” She suggested that high expectations would be a recurring theme in 2025 and warned that investors could experience their first real disappointment as more economic data rolls in. This sentiment aligns with broader concerns that after such a strong rally, markets could face a reality check in the near future.
As investors prepare for economic data releases, corporate earnings will also be in focus later this week. Major companies such as Constellation Brands, Walgreens Boots Alliance, and Delta Air Lines are set to report their earnings toward the end of the week. These reports will give investors insight into how key sectors are performing as the economy continues to adjust to potential interest rate hikes and changing market conditions.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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