Stock futures rise slightly to begin 2025 after S&P 500 notches back-to-back annual 20%-plus gains

Published On Jan 1, 2025, 6:03 PM

Stock futures are slightly up as trading begins in 2025, buoyed by hopes for continued market momentum after strong gains in 2023 and 2024. The S&P 500 finished last year up 23%, while the Dow gained nearly 13%. However, recent profit-taking from big tech stocks like Nvidia and Apple may temper early trading. Additionally, concerns have arisen due to a tragic incident in New Orleans being investigated as a potential terror attack. Investors are awaiting jobless claims data that could provide further insights into the job market.

Stock Forecasts

SPY

Positive

The stock market is showing a positive outlook due to the continued strength from large-cap technology stocks and overall market momentum from the past two years. However, recent profit-taking might lead to volatility in the short term.

SPXU

Negative

Given the current market conditions and historical performance predictions for the early trading period of the new year, the S&P 500 ETF is expected to maintain upward pressure as long-term growth sentiment remains strong.

Related News

Wall Street strategists see further gains for the S&P 500 in 2025 as a broadening of earnings growth and a resilient US economy continue to drive the bull market rally.

XLF
XLY
SPY

NEW YORK (Reuters) -Investors are expecting more gains for the U.S. stock market in 2025 after two straight standout years, fueled by a solid economy supporting corporate profits, moderating interest rates and pro-growth policies from incoming President Donald Trump. The benchmark S&P 500 was up 23.31% in 2024, even with a recent speed bump, marking its second-straight year of gains exceeding 20%, lifted by megacap tech stocks and excitement over the business potential of artificial intelligence. Investors are more confident about the economy than this time a year ago, with consumers and businesses having absorbed higher interest rates and the Federal Reserve now lowering them - albeit by not as much as hoped.

Stocks were setting up for a fitting end to a roaring year of trading after an uncharacteristic limp into the finish.