Stocks Rise on Signs US Economy Is Doing Just Fine: Markets Wrap
Published On Jan 30, 2025, 1:05 PM
Recent data suggests that the US economy is strong, leading to a rise in stock prices. The S&P 500 showed a small gain as most companies improved, with signs of robust consumer spending inflating small-cap stocks more than large ones. Despite some declines in high-influence tech stocks, optimism for broader market participation remains. Key earnings reports from companies like Tesla, Meta, and IBM are driving positive sentiment, while others like Microsoft and UPS have faced setbacks. Investors are being cautious with expectations, particularly about interest rates and tech valuations, as they await further economic data.
Stock Forecasts
SPY
Positive
Given the overall positive sentiment around the US economy and strong consumer spending, investor confidence is likely to remain high, which could lead to sustained gains in equities, especially in sectors outside technology.
IWM
Positive
With many tech stocks showing weakness and concerns about valuations in that sector, there may be continued volatility. This could create opportunities for those looking to invest in undervalued sectors or smaller companies.
Related News
Powell pushes back on Musk's claim Fed is 'absurdly overstaffed'
Jan 29, 2025, 5:22 PM
Federal Reserve Chair Jerome Powell pushed back on billionaire Elon Musk's claim the central bank is "absurdly overstaffed," saying the Fed has a careful budget process.
Donald Trump attacks Fed after no change in interest rates
Jan 29, 2025, 4:53 PM
The US central bank keeps its key interest rate unchanged as it faces significant economic uncertainty.
Cautious Fed holds rates steady with Trump unknowns looming over outlook
Jan 29, 2025, 3:12 PM
The Federal Reserve held interest rates steady Wednesday as policymakers weigh the direction of inflation and the potential effect of economic policies expected from the new Trump administration.