empty
24.01.2025 09:56 AM
Stock Market Update: S&P 500 and NASDAQ Hit New Yearly Highs

After Donald Trump's speech in Davos yesterday, S&P 500 futures rose by over 0.7% and continue to trade positively. The tech-heavy NASDAQ gained approximately 0.6%, thanks to Trump's signing of an executive order on AI funding. Meanwhile, the industrial Dow Jones remains relatively flat.

It's important to note that U.S. stocks have now increased for the ninth consecutive day, reaching a new all-time high. This surge is attributed to President Trump's comments suggesting a potentially softer approach to tariffs on China. Additionally, the Japanese yen strengthened following an interest rate hike by the Bank of Japan. Chinese stocks experienced a significant surge, and the yuan continued its rally after Trump stated in an interview that he would prefer not to impose tariffs on China, the world's second-largest economy.

This image is no longer relevant

The situation seems to be easing from the worst fears regarding U.S. tariffs. While it's too early to say for sure—and Trump is fickle—there are increasing signs that U.S. trade policy toward China is open to negotiation. In this context, yields on 10-year Treasury bonds have declined.

Trump's remarks could also indicate a willingness to negotiate with Beijing before resorting to significant tariffs on Chinese imports. Nevertheless, it's hard to imagine Trump completely backing away from his tariff threats, so market growth might continue only until these threats materialize into concrete actions.

As I noted above, in Japan, the yen strengthened against the greenback after the BOJ raised interest rates for the first time since July. It briefly broke the key 155 level against the dollar during Governor Kazuo Ueda's press conference, then retreated as traders digested his comments. The central bank has signaled that it expects inflation to be faster than it had previously forecast in the coming years. The BOJ also said that if its forecast comes true, it will continue to raise interest rates.

Investor sentiment is somewhat optimistic about the Trump administration's ability to implement measures that will stimulate stock growth while controlling inflationary pressures. This would allow the Federal Reserve to continue easing monetary policy this year. Interest is growing in sectors linked to infrastructure and high technology, tied to the administration's plans for significant investment projects. Furthermore, optimism is supported by discussions of potential tax reforms, which could further boost business and consumer spending.

However, caution is warranted: geopolitical tensions and unpredictable decisions could alter this optimistic scenario. Nevertheless, current market sentiment reflects a readiness for a positive outlook, enabling many market participants to seize the opportunities available.

Demand for the S&P 500 remains strong. The main objective for buyers today is to break through the nearest resistance level at $6,116. If they succeed, it will sustain the upward trend and pave the way for a rally to $6,125. Another key target for bulls will be to gain control over $6,137, which would further solidify their position. If there's a downward movement due to a decreased risk appetite, buyers need to step in around $6,105. If they fail to maintain this level, the price could quickly drop to $6,092, potentially leading to a decline toward $6,079.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Summary
Urgency
Analytic
Pavel Vlasov
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Stock market on August 13: S&P 500 and Nasdaq rally on inflation data

By the end of yesterday's session, US stock indices closed higher. The S&P 500 rose by 1.13%, while the Nasdaq 100 jumped by 1.39%. The industrial Dow Jones gained 1.10%

Jakub Novak 09:26 2025-08-13 UTC+2

Stock market on August 12: S&P 500 and Nasdaq edge lower

US stock indices ended yesterday's session with losses. The S&P 500 fell by 0.25%, while the Nasdaq 100 slipped by 0.30%. The industrial Dow Jones dropped by 0.45%. However

Jakub Novak 09:29 2025-08-12 UTC+2

Stock market on August 11: S&P 500 and NASDAQ return to growth

Last Friday, US stock indices closed higher. The S&P 500 gained 0.78%, while the Nasdaq 100 added 0.97%. The industrial Dow Jones rose by 0.47%. Today, US and European stock

Jakub Novak 08:12 2025-08-11 UTC+2

Stock market on August 8: S&P 500 and Nasdaq see minor correction

As of yesterday's close, US stock indices finished mixed. The S&P 500 fell by 0.08%, while the Nasdaq 100 gained 0.35%. The Dow Jones Industrial Average declined by 0.51%. European

Jakub Novak 10:15 2025-08-08 UTC+2

US market on track for all-time highs. Focus on trade wars

US stock markets continue to climb. The euphoria of recent days is driven by several factors at once: strong corporate earnings, impressive news from Apple, and increasingly realistic expectations

Anna Zotova 15:10 2025-08-07 UTC+2

Stock market on August 7: SP500 and NASDAQ resume their rally

At the end of the previous trading day, US stock indices closed in the green. The S&P 500 rose by 0.73%, while the Nasdaq 100 gained 1.21%. The Dow Jones

Jakub Novak 09:03 2025-08-07 UTC+2

Stock market on August 6: S&P 500 and NASDAQ remain volatile

By the end of yesterday's session, US stock indices closed lower. The S&P 500 dropped by 0.49%, while the Nasdaq 100 lost 0.45%. The industrial Dow Jones slipped by 0.14%

Jakub Novak 09:36 2025-08-06 UTC+2

Stock Market on August 5: S&P 500 and NASDAQ recover some ground

At the close of trading on August 5, US stock indices regained part of Friday's losses. The S&P 500 rose by 1.47%, while the Nasdaq 100 added 1.95%

Jakub Novak 13:07 2025-08-05 UTC+2

US markets: key drivers, looming risks, and fresh incentive for Musk

US indices are once again charging toward record highs. After a tense week, when the market stumbled over trade wars and a weak labor market, the momentum is shifting back

Anna Zotova 13:07 2025-08-05 UTC+2

Stock Market on August 4: SP500 and NASDAQ plunge

At the close of trading yesterday, US stock indices ended in the red. The S&P 500 fell by 1.60%, while the Nasdaq 100 dropped by 2.24%. The Dow Jones Industrial

Jakub Novak 10:50 2025-08-04 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.