Stock market today: Dow jumps 700 points, Nasdaq soars 2.5% after cool CPI reading
Published On Jan 15, 2025, 4:08 PM
US stocks experienced a significant rally as positive earnings from major banks and favorable inflation data contributed to investor optimism. The S&P 500 rose by more than 1.8%, the Dow Jones by 1.6%, and the Nasdaq Composite by 2.5%. The Consumer Price Index (CPI) indicated that inflation grew less than expected in December, suggesting progress toward the Federal Reserve's 2% target. The 10-year Treasury yield dropped, making stocks more attractive. Amid this backdrop, key banks like JPMorgan Chase and Goldman Sachs reported strong earnings, further bolstering market confidence. The trend was particularly pronounced within the financial sector and led to gains for large-cap tech stocks, including the so-called "Magnificent Seven" (AAPL, GOOGL, MSFT, AMZN, META, TSLA, NVDA).
Stock Forecasts
JPM
Positive
Given the positive economic indicators and strong earnings reports from major banks, which signal robust health in the financial sector, investor sentiment is likely to remain strong. This could lead to continued upward pressure on bank stocks and those in the financial sector in the coming weeks.
AAPL
Positive
The broader market rally, particularly in the tech sector, appears to be bolstered by positive sentiment surrounding large-cap tech stocks post-inflation data. Investors might see this as a continuation of the trend towards these stocks amidst economic recovery and stabilization.
XLRE
Positive
The recent decline in bond yields may further decrease the cost of borrowing, benefiting the real estate sector. This may encourage investment in real estate funds and REITs, as lower rates can stimulate home buying and construction activity.
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