Stock market today: Nasdaq jumps to lead Dow, S&P 500 higher as techs, rate-cut hopes revive

Published On Jan 17, 2025, 2:45 PM

US stocks rallied on Friday, with the Dow Jones increasing by 0.9%, the S&P 500 by 1.2%, and the Nasdaq Composite by 1.7%, spurred on by a tech stock revival driven by the recovery of major players like Nvidia and Tesla. Additionally, strong housing starts and higher-than-expected industrial production pointed to economic strength, renewing optimism for potential interest rate cuts. Tesla's stock surged over 6% as speculation swirled around CEO Elon Musk potentially buying TikTok. Meanwhile, Bitcoin price topped $100,000 as investors expect supportive crypto policies under the incoming Trump administration. On the downside, Novo Nordisk saw its stock drop by 4% following news of potential Medicare price negotiations impacting its drugs.

Stock Forecasts

TSLA

Positive

Given the positive market sentiment and the tech revival driven by speculation around Tesla and Nvidia, as well as the broader recovery in the crypto market, it is expected that tech stocks will continue to perform strongly in the near term. The anticipation of policy shifts under the Trump administration could also benefit these sectors.

NVDA

Positive

Tesla stock has gained significantly due to speculation around Musk's potential acquisition of TikTok and the overall tech stock recovery. However, concerns over inflation due to potential tariffs from the Trump administration might temper long-term growth. Nevertheless, the immediate outlook remains strong.

COIN

Positive

With the current surge in cryptocurrency values and impending constructive regulatory approaches, companies tied to crypto like Coinbase are likely to see continued upward movement. The resurgence of Bitcoin and its increasingly favorable regulatory landscape under incoming leadership positions Coinbase for growth.

NVO

Negative

Novo Nordisk's recent drop in stock price due to Medicare price negotiations could pose challenges moving forward especially with incoming administration policies that might affect drug pricing. Caution is advised despite its strong market presence.

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