Stock market today: Dow leads weekly stock market rally ahead of Trump inauguration

Published On Jan 17, 2025, 4:07 PM

US stocks saw a significant rise on Friday, largely driven by a resurgence in technology stocks as investors reacted positively to recent economic data and earnings reports. The Dow Jones gained 0.8%, S&P 500 increased by 1%, and the Nasdaq rose 1.5%. Key factors contributing to this rally included strong bank earnings, optimistic inflation readings suggesting potential interest rate cuts, and anticipation around policy changes with Donald Trump's upcoming presidential term. Notable tech stocks such as Nvidia and Tesla rebounded, further boosting market sentiment. Inflationary concerns linked to Trump's proposed tariffs were noted as a potential risk, especially impacting relations with China, but the general outlook remains positive heading into the next week ahead of major corporate earnings reports.

Stock Forecasts

NVDA

Positive

The market rally indicates strong momentum in technology stocks, particularly with indices gaining substantially over the week. The optimism around interest rate cuts is likely to provide further tailwinds for tech and growth-oriented stocks. Investors should consider increasing exposure to key tech firms that are already exhibiting positive price movements and are benefiting from favorable policy shifts under the incoming administration.

COIN

Positive

As Bitcoin prices soar above $100,000 and speculation around favorable cryptocurrency policies under Trump's administration grows, crypto-related stocks such as Coinbase are set for significant upside. The expectation of clearer regulatory frameworks could enhance market confidence in the crypto space.

NVO

Negative

The pressure from potential drug price negotiations with CMS is negatively impacting Novo Nordisk, particularly given its large market share in GLP-1 drugs. This could lead to further declines in stock price as investors react to regulatory risks.

Related News

The Biden administration released another list of prescriptions drugs that would be subject to price controls. The price controls for the selected drugs will become effective in 2027.

Investors are appraising Trump policies' likely impact on stocks on the last trading day before the inauguration.

TSLA
NVDA
COIN
NVO

(Bloomberg) -- Nvidia Corp. Chief Executive Officer Jensen Huang is expected to miss the inauguration of President-elect Donald Trump on Jan. 20, bucking a trend among high-profile US technology leaders. Most Read from BloombergThese Homes Withstood the LA Fires. Architects Explain WhyNYC Commuters Get New Way to Dodge Traffic: $95 Helicopter RidesWill Americans Ever Lose Their Taste for Telework?Chicago Agency Pitches $1.5 Billion Plan to Fix Transit WoesScaramucci, Ackman Donate to Whitney Til