What Happened Last Week

The S&P 500 Index declined 0.48 percent, the Nasdaq Composite Index declined 0.51 percent and the Dow Jones Industrial Average declined 0.60 percent.^1,2

Selling Leads To Buying

Stocks were under pressure right out of the gate on Monday for no apparent reason other than worries over the loss of year-end momentum. By the end of trading on Monday, markets recovered some losses, but the selling picked up again on Tuesday.^3,4

After being closed for the New Year’s holiday, stocks opened higher for the first trading day of 2025. But sellers gained the upper hand by the end of trading. On Friday, Investors perked up with tech stocks leading a recovery rally that erased most of the week’s losses.^5,6

Megacap’s Influence On The S&P

Megacap tech stocks have captured many headlines over the last two years as the S&P 500 posted double-digit returns (24 percent for 2023 and 23 percent for 2024).

And for a good reason—megacap tech stocks were doing most of the work. For example, during the past 12 months of trading, more than half (53 percent) of the S&P 500’s return can be attributed to the Magnificent Seven–the seven megacap tech companies that most investors would consider household names.⁷

Economic Data To Watch

Monday:Fed Official Lisa Cook speaks. Factory Orders.

Tuesday:Fed Official Thomas Barkin speaks. International Trade in Goods and Services.

Wednesday:FOMC Minutes released. ADP Employment Report. Fed Official Christopher Waller speaks.

Thursday:Stock market closed for President Carter’s state funeral.

Friday:Employment Situation. Consumer Sentiment.

^{Source: Investors Business Daily - Econoday economic calendar; January 3, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

Upcoming Earnings Reports

Wednesday:Jefferies Financial Group Inc. (JEF)

Thursday:Infosys (INFY), Constellation Brands Inc. (STZ)

Friday:Bank of America Corporation (BAC), Wells Fargo & Company (WFC), BlackRock, Inc. (BLK), Delta Air Lines, Inc. (DAL)

^{Source: Zacks, January 3, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

Footnotes and Sources

^{1. The Wall Street Journal, January 3, 2025}

^{2. Investing.com, January 3, 2025}

^{3. CNBC.com, December 30, 2024}

^{4. The Wall Street Journal, December 31, 2024}

^{5. CNBC.com, January 2, 2025}

^{6. CNBC.com, January 3, 2025}

^{7.  The Wall Street Journal, December 31, 2024}

^{Source: YCharts.com, January 4, 2025. Weekly performance is measured from Friday, December 27, to Friday, January 3. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.}