Weekly Market Report (January 05, 2025) - Insights and Forecasts
Dive into the market analysis for January 05, 2025, covering SPY, QQQ, IWM, and the week’s key economic data. Stay ahead with expert insights and forecasts.
Weekly Market Report for January 05, 2025
The stock market had a mixed week, wrapping up both the final trading days of 2024 and the Santa Claus Rally period. After strong yearly gains, the major indices lost momentum as the year ended, but some recovery was seen in the final sessions.
Smaller stocks outshined larger ones, with the Russell 2000 rising 1.1% this week. In contrast, the S&P 500 and Nasdaq Composite each fell 0.5%. For the year, however, the S&P 500 surged 23.3%, and the Nasdaq Composite gained an impressive 28.6%.
This week's performance left the S&P 500 down for the Santa Claus Rally period, which historically delivers an average 1.3% gain since 1950, according to The Stock Trader's Almanac. While some years without a Santa Claus Rally have led to market downturns, last year was an exception, as the S&P 500 gained 23.3% in 2024 despite Santa’s absence.
The S&P 500 also slipped below its 50-day moving average, which shifted from support to resistance on Monday.
Only three sectors in the S&P 500 ended the week higher: energy (+3.2%), real estate (+0.6%), and health care (+0.01%). On the downside, materials (-2.1%), consumer discretionary (-1.5%), and consumer staples (-1.4%) posted the biggest losses.
Weekly Market Heatmap
Weekly Sector Performance
Looking Ahead to the Upcoming Week
The upcoming week features several key economic events that could influence market sentiment. Highlights include the ISM Services PMI and JOLTS Job Openings on Tuesday, offering insights into economic activity and labor market conditions. Wednesday brings the ADP Non-Farm Employment Change, unemployment claims, and FOMC meeting minutes, providing a deeper look into employment trends and Federal Reserve policy discussions. On Friday, the focus will be on the Non-Farm Payrolls report, unemployment rate, and average hourly earnings, alongside the preliminary University of Michigan Consumer Sentiment and inflation expectations, which will shape expectations for future economic growth and inflation dynamics. These reports are likely to set the tone for markets as investors assess economic resilience and policy implications.
Economic Events
Earnings Event
Market Health
Broader Market - SPY, QQQ, IWM, DIA
The SPY, QQQ, IWM, and DIA charts all show medium- to long-term uptrends, supported by upward-sloping 10-week (purple) and 40-week (red) SMAs. However, recent pullbacks across all indices suggest a short-term weakness, with prices testing key support levels near their 10-week SMAs. The SPY and QQQ remain above critical support zones, while IWM and DIA show relative strength in small-cap and industrial stocks.
The market remains bullish
Watch List
AVGO, MRVL, CLS, QBTS
RUM, ANF, CRDO, PRCH
GME, AFRM, NET, TSM
GOOGL, HOOD, AXP, OWL
CLPT, CGNT, POET, PLTR
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