Please ensure Javascript is enabled for purposes of website accessibility

US Consumer Spending Falls as Trump Tariff’s Muddle Economy

19 hours ago

US Supreme Court Lets Parents Take Kids Out of Classes With LGBT Storybooks

20 hours ago

In Win for Trump, US Supreme Court Limits Judges’ Power to Block Birthright Citizenship Order

22 hours ago

California’s Newsom Sues Fox News for $787 Million for Defamation Over Trump Call

22 hours ago

Motorcycle Collides With Tractor in Fatal Fresno County Collision

22 hours ago

Fourth of July Celebrations Begin Saturday. Here’s Your Fresno Area Guide

24 hours ago

Bill Moyers, Broadcaster and LBJ’s White House Press Secretary, Dies at 91

2 days ago

State Department Approves $30 Million for Gaza Humanitarian Foundation

2 days ago

Cargo Ship That Caught Fire Carrying Electric Vehicles Sinks in the Pacific

2 days ago

4 Million Acres of California Forests Could Lose Protection. What Trump’s ‘Roadless Rule’ Repeal Could Do

3 days ago
Stock Market Today: Nvidia and Other Tech Stocks Drive Wall Street Higher
gvw_ap_news
By Associated Press
Published 6 months ago on
January 6, 2025

A trader works on the floor at the New York Stock Exchange in New York's Financial District Thursday, Jan. 2, 2025. (AP/Seth Wenig)

Share

Getting your Trinity Audio player ready...

NEW YORK  — U.S. stock indexes are rising Monday to recover more of the holiday-season slide that bridged the new year.

The S&P 500 was 1.2% higher in morning trading and on track for a second straight gain following five straight losses, its longest losing streak since April. The Dow Jones Industrial Average was up 261 points, or 0.6%, as of 10:30 a.m. Eastern time, and the Nasdaq composite was 1.8% higher.

Tech stocks again led the way, including those swept up in the frenzy around artificial-intelligence technology. Nvidia climbed 4.7% ahead of a speech by CEO Jensen Huang at the annual CES convention in Las Vegas after trading ends for the day.

Nvidia, AI Stocks Keep Climbing

Nvidia and other AI stocks keep climbing even as criticism rises that their stock prices have already shot too high, too fast. Despite worries about a potential bubble, the industry keeps talking up its potential.

Microsoft Vice Chair Brad Smith said on late Friday the company is on track to invest about $80 billion to build out AI-enabled datacenters to train AI models this fiscal year. Smith said AI is the biggest opportunity “to harness new technology to invigorate the nation’s economy” since the invention of electricity. Microsoft rose 2.1%.

Uber drove 3.5% higher after the ride-hailing app said it would accelerate $1.5 billion in purchases of its own stock, part of a previously announced $7 billion buyback program. Uber’s chief financial officer, Prashanth Mahendra-Rajah, said it’s making the move because its stock price looks cheap compared with the strength of its business.

In the old economy, U.S. Steel climbed 4.6% after it and Japan’s Nippon Steel filed a federal lawsuit challenging President Joe Biden’s decision to block a proposed nearly $15 billion deal for Nippon to buy its Pittsburgh-based rival.

The suit, filed in the U.S. Court of Appeals for the District of Columbia, alleges that it was a political decision and violated the companies’ due process. Japanese leaders have also said there is scant evidence that the merger would create a security concern for the U.S.

One Day Fewer of Trading This Week

This upcoming week will have one fewer day of trading than usual. The New York Stock Exchange and Nasdaq will close their stock and options markets on Thursday in observance of a National Day of Mourning for former President Jimmy Carter.

But the calendar is nevertheless packed with potentially market-moving events. Tuesday will deliver the latest updates on monthly job openings advertised by U.S. employers and on the health of businesses in the services industries. On Wednesday, the Federal Reserve will release the minutes from its last policy meeting, where it cut its main interest rate for a third straight time but hinted fewer reductions may come in 2025.

Friday will bring the week’s headliner: the monthly jobs report, along with an update on how U.S. consumers are feeling.

So far, the economy has remained remarkably resilient despite high interest rates the Fed instituted in recent years to stifle inflation. A report on Monday said business confidence also has improved since the presidential election, and a measure of activity for services businesses hit its highest level in nearly three years.

“Business activity in the vast services economy surged higher in the closing month of 2024 on fuller order books and rising optimism about prospects for the year ahead,” according to Chris Williamson, chief business economist at S&P Global Market Intelligence.

Interest Rates Cut in September

The Fed has also been trying to give the economy an easier time, and it began cutting interest rates in September after inflation pulled nearly all the way down to its 2% target. But getting the last percentage point of improvement from inflation may prove more difficult. Worries are also rising that tariffs and other policies coming from President-elect Donald Trump could put upward pressure on inflation.

Treasury yields have climbed in the bond market as a result. That can hurt stock prices because higher-paying bonds can peel away investors who otherwise might buy stocks.

At Morgan Stanley, strategist Michael Wilson says the sweet spot for U.S. stocks is likely a yield of between 4.00% and 4.50% for the 10-year Treasury. It drove above that level in mid-December and has remained there. It’s up to 4.64%, up from 4.60% late Friday.

In stock markets abroad, indexes were mixed across Europe and Asia.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Trump Sends in DOGE to Slash Federal Gun Regulations by July 4

DON'T MISS

Tensions Flare at Announcement of Major Fresno County Gang Takedown

DON'T MISS

Measure C ‘Blackmailed’ As Fresno Enviro Coalition Gets Huge Say on Transportation Tax

DON'T MISS

Despite $49M Deficit, Fresno Unified Gives Top Brass 5% Raise, 3% One-Time Bonus

DON'T MISS

US Consumer Spending Falls as Trump Tariff’s Muddle Economy

DON'T MISS

US Supreme Court Preserves Key Element of Obamacare

DON'T MISS

US Supreme Court Lets Parents Take Kids Out of Classes With LGBT Storybooks

DON'T MISS

Fresno Unified Trustees Will Get Automatic Raises on Tuesday

DON'T MISS

Alleged ‘Fake’ ICE Agents Charged. Fresno Court Date Set

DON'T MISS

In Win for Trump, US Supreme Court Limits Judges’ Power to Block Birthright Citizenship Order

UP NEXT

Tensions Flare at Announcement of Major Fresno County Gang Takedown

UP NEXT

Measure C ‘Blackmailed’ As Fresno Enviro Coalition Gets Huge Say on Transportation Tax

UP NEXT

US Consumer Spending Falls as Trump Tariff’s Muddle Economy

UP NEXT

US Supreme Court Preserves Key Element of Obamacare

UP NEXT

US Supreme Court Lets Parents Take Kids Out of Classes With LGBT Storybooks

UP NEXT

Fresno Unified Trustees Will Get Automatic Raises on Tuesday

UP NEXT

Alleged ‘Fake’ ICE Agents Charged. Fresno Court Date Set

UP NEXT

In Win for Trump, US Supreme Court Limits Judges’ Power to Block Birthright Citizenship Order

UP NEXT

California’s Newsom Sues Fox News for $787 Million for Defamation Over Trump Call

UP NEXT

Motorcycle Collides With Tractor in Fatal Fresno County Collision

Measure C ‘Blackmailed’ As Fresno Enviro Coalition Gets Huge Say on Transportation Tax

17 hours ago

Despite $49M Deficit, Fresno Unified Gives Top Brass 5% Raise, 3% One-Time Bonus

17 hours ago

US Consumer Spending Falls as Trump Tariff’s Muddle Economy

19 hours ago

US Supreme Court Preserves Key Element of Obamacare

20 hours ago

US Supreme Court Lets Parents Take Kids Out of Classes With LGBT Storybooks

20 hours ago

Fresno Unified Trustees Will Get Automatic Raises on Tuesday

21 hours ago

Alleged ‘Fake’ ICE Agents Charged. Fresno Court Date Set

21 hours ago

In Win for Trump, US Supreme Court Limits Judges’ Power to Block Birthright Citizenship Order

22 hours ago

California’s Newsom Sues Fox News for $787 Million for Defamation Over Trump Call

22 hours ago

Motorcycle Collides With Tractor in Fatal Fresno County Collision

22 hours ago

Mamdani’s NYC Primary Win Sparks Surge in Anti-Muslim Posts, Advocates Say

WASHINGTON — Anti-Muslim online posts targeting New York City mayoral candidate Zohran Mamdani have surged since his Democratic primary upse...

35 minutes ago

Zohran Mamdani Speaks to Supporters
35 minutes ago

Mamdani’s NYC Primary Win Sparks Surge in Anti-Muslim Posts, Advocates Say

American Flag Revolver
15 hours ago

Trump Sends in DOGE to Slash Federal Gun Regulations by July 4

Rob_Bonta_Speaking_At_Press_Conference_1280x720
16 hours ago

Tensions Flare at Announcement of Major Fresno County Gang Takedown

Garry_Bredefeld_Sandra_Celedon_Mesure_C_1280x720
17 hours ago

Measure C ‘Blackmailed’ As Fresno Enviro Coalition Gets Huge Say on Transportation Tax

Fresno_Unified_Raises_1280x720
17 hours ago

Despite $49M Deficit, Fresno Unified Gives Top Brass 5% Raise, 3% One-Time Bonus

Eastern Market in Washington, D.C.
19 hours ago

US Consumer Spending Falls as Trump Tariff’s Muddle Economy

Obamacare Sign in San Ysidro, California
20 hours ago

US Supreme Court Preserves Key Element of Obamacare

Pride Flags Fly in New York
20 hours ago

US Supreme Court Lets Parents Take Kids Out of Classes With LGBT Storybooks

Help continue the work that gets you the news that matters most.

Search

Send this to a friend