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S&P 500: Tech Stocks Rise with Nvidia and Tesla Boosting Market Optimism

By:
James Hyerczyk
Published: Jan 17, 2025, 14:22 GMT+00:00

Key Points:

  • S&P 500 futures rally as inflation data eases; Nvidia and Tesla rebound, setting markets up for the strongest week since November.
  • Cooling CPI and PPI drive optimism, with Treasury yields dropping to 4.57%, boosting hopes for Fed rate cuts in 2025.
  • Tech stocks recover; Nvidia climbs 1.3%, Tesla gains 1.2%, while semiconductors surge on AI-driven demand optimism.
  • Strong earnings from banks and easing rate concerns fuel US stocks’ rise, with S&P 500 gaining 1.9% this week.
  • Investors focus on Fed policy clarity and economic data, including industrial production and housing resilience.
Nasdaq 100 Index, S&P 500 Index, Dow Jones

In this article:

Dow Futures Rise 200 Points as Tech Leads Weekly Market Rally

U.S. stock futures rose sharply on Friday, with Wall Street positioned to close its best week since November. A cooling inflation outlook, strong corporate earnings, and a rebound in tech stocks have boosted investor sentiment.

Daily E-mini S&P 500 Index

Dow Jones futures climbed 230 points, or 0.5%, while S&P 500 and Nasdaq 100 futures gained 0.5% and 0.7%, respectively. For the week, the Dow is up 2.9%, and the S&P 500 has advanced 1.9%. The Nasdaq Composite, up 0.9% for the week, is also on track for its strongest performance since early December.

What’s Driving Market Optimism?

Markets rallied on data showing inflationary pressures easing. The core Consumer Price Index (CPI) rose less than expected in December, while the Producer Price Index (PPI) also came in below forecasts. These softer inflation readings sent the 10-year Treasury yield sharply lower, dropping to 4.57% and raising expectations for multiple Federal Reserve rate cuts later this year.

The drop in yields has provided relief to growth-oriented stocks, particularly in the tech sector. It also comes alongside strong earnings from major financial institutions, which helped lift markets out of their early-year slump.

How Is Tech Performing?

The tech-heavy Nasdaq led premarket gains, fueled by rebounds in key names like Apple, Nvidia, and Tesla.

Daily Apple Inc
  • Apple rose 1.5%, recovering from a 4% loss Thursday due to weak iPhone sales in China.
  • Nvidia climbed 1.3%, attempting to break through its 50-day moving average after a 2% decline in the previous session.
  • Tesla gained 1.2% as the stock finds support at its 10-week moving average, indicating potential stabilization.

Semiconductor stocks also surged. Both Lam Research and Applied Materials gained 2% following upgrades from KeyBanc Capital Markets, citing their exposure to AI-related devices.

Notable Premarket Movers

Daily J.B. Hunt Transport Services, Inc.

What’s Next for Markets?

As Wall Street eyes a strong finish to the week, focus turns to upcoming earnings and economic data. Friday’s housing starts and permits data exceeded expectations, signaling resilience in the real estate market. Investors will also monitor the Federal Reserve’s industrial production report for clues on economic momentum.

While optimism over easing inflation has bolstered sentiment, strategists caution that markets may remain rangebound as they await clearer signals on monetary policy and corporate earnings trends.

More Information in our Economic Calendar.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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