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The S&P 500 jumped 1% on Friday, January 17, 2025, ahead of a three-day weekend on a positive note as prospects for additional interest rate cuts in 2025 rebounded.
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Intel shares took off following reports that the semiconductor giant could be an acquisition target.
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Freight shipper JB Hunt reported lower-than-expected fourth-quarter sales and profits and its shares fell.
Major US stock indices pushed higher to end the week, with the traders set for a day off in celebration of Martin Luther King Jr. Day, a Monday that will also see the swearing-in of Donald Trump for his second presidential term.
Stocks’ strength as the week closed coincided with renewed optimism that the Federal Reserve could continue lowering interest rates in 2025, reinforced by indications decline in inflation. (Here are four reasons inflation is still there.)
The S&P 500 advanced 1% on Friday. Strength in the technology sector helped push the Nasdaq up 1.5%, while the Dow finished the day up 0.8%.
Intel (INTC) shares jumped 9.3%, landing the S&P 500’s best performer, amid reports that the semiconductor giant could be a buyout target. Friday’s surge extended gains Intel stock posted earlier in the week after the chipmaker announced it would spin off its venture capital fund into a standalone entity, with the company remaining an investor. Intel’s interim CEO said the move would help the company increase efficiency and maximize the value of its assets.
SLB (SLB), the world’s largest oilfield services company, reported better-than-expected fourth-quarter profits, raised its dividend and accelerated its share buybacks. Although SLB struck a cautious tone for 2025, indicating that year-over-year revenue growth would be limited as high oil supply levels dampen oil business, its shares jumped 6 .1% following the publication of solid results.
Truist Financial shares (TFC) gained 5.9% after the bank holding company beat quarterly sales and profit estimates. Net interest income and non-interest income increased from last year’s levels, contributing to these strong results. An increase in average deposit balances also contributed to Truist’s performance, despite a decline in average loan balances.
Shares of JB Hunt Transport Services (JBHT) suffered the biggest decline of any S&P 500 stock on Friday, falling 7.4% after the shipping company’s fourth-quarter sales and earnings. did not meet expectations. Declining volumes weighed on performance and the company reported lower revenue across all its segments. JB Hunt CEO said the company remains focused on repairing its margins as it faces headwinds from the freight sector.
