Stock market today: Dow, S&P 500, Nasdaq jump as Nvidia, Tesla lead spark to end losing week

Published On Jan 3, 2025, 4:05 PM

During the last trading session of the week on January 3, 2025, US stocks showed a rebound following a rough start to the new year. The technology sector drove this comeback, notably with Tesla's stock surging by 8% after reporting record sales in China. Nvidia also saw a gain of over 4% amid wider tech market recovery. Despite Friday's gains, major US stock indices (S&P 500, Dow, and Nasdaq) ended the week down over 1%, haunted by the end of a 'Santa Claus' rally, which historically suggests strong January gains. Additionally, manufacturing data indicated ongoing economic challenges, with a contraction still evident as the ISM index fell below the neutral mark. On the negative side, US Steel's shares dropped over 6% after a merger deal was blocked by the Biden administration, signaling potential challenges ahead for the steelmaker.

Stock Forecasts

TSLA

Positive

The resurgence of both Tesla and Nvidia indicates strong investor interest in technology stocks, particularly in the EV and AI sectors, pushing forward the medium-to-long term positive outlook for both companies. Tesla's robust performance in the Chinese market bodes well for future growth, while Nvidia continues to attract bullish sentiment from analysts due to its foundational role in AI technologies.

NVDA

Positive

Despite the recent drop, the market shows potential for recovery led by strong earnings and sales data in the EV sector. Nvidia's stock was already forecasted to rise due to its strong performance, and the latest gains suggest a positive trajectory ahead. The broader tech recovery, supported by increased demand in AI-driven markets, further enhances this outlook.

X

Negative

US Steel's troubling developments may create a negative perception among investors, especially with the halted merger and continued concerns over steel prices and market competition. The political block of foreign acquisition could hurt operational dynamics, reflecting negatively on stock performance.

CEG

Positive

The nuclear sector's recent gains following government contracts signal potential growth for companies involved in sustainable energy solutions, as government policy shifts focus towards low-carbon energy sources. The strong performance across nuclear stocks showcases an increasing investor confidence in this transitioning energy sector.

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President Biden's decision to block the acquisition of U.S. Steel by Nippon Steel citing national security concerns drew criticism from former Secretary of State Mike Pompeo.

Biden decided to scrap the deal despite concerns that it could damage Washington's relations with Tokyo.

Hopes are dim for a "Santa Claus" rally after a five-session run of losses for the S&P 500.