Stock rally stalls as S&P 500 pulls back after inching toward record highs

Last updated: January 24, 2025 10:58 am

By MT HANNACH

3 Min Read

Disclosure: This website may contain affiliate links, which means I may earn a commission if you click on the link and make a purchase. I only recommend products or services that I personally use and believe will add value to my readers. Your support is appreciated!

NYSE trader — A trader works on the floor of the New York Stock Exchange (NYSE) in New York, the United States, March 9, 2020.Bryan R Smith

The rally in U.S. stocks stalled Thursday after the S&P 500 hit record highs.
Trump’s deregulation plans and a major AI investment announcement helped drive stock prices higher this week.
Investors are focused on fourth-quarter results and the upcoming Federal Reserve meeting.

The rally in U.S. stocks stalled on Thursday, with shares trading mixed and the S&P500 falling after reaching record levels during the first week of Donald Trump’s presidency.

Trump’s plans to usher in a wave of deregulation helped spur “animal spirits” on Wall Street, pushing stock prices higher.

A Announcement of an investment of 500 billion dollars for AI infrastructure also boosted tech stocks this week, but the Nasdaq100 gave up some of those gains and was down about half a percent during Thursday’s trading session.

Investors digested early jobless claims on Thursday, which rose slightly from the previous week to 223,000 from 217,000. That’s slightly higher than economists’ estimates of 221,000.

But investors’ priorities this week and for the weeks to come are fourth quarter results.

While 14% of S&P 500 companies have reported earnings so far, 78% of them are beating earnings estimates by a median of 6%, according to Fundstrat data.

The big earnings show begins next week, when large-cap tech companies including Apple, Meta Platforms and Tesla prepare to report results.

Investors are also preparing for the Federal Reserve’s policy meeting next week. With markets expecting the central bank to leave rates unchanged, comments from Fed officials could move markets if they indicate a change in the direction of interest rates from what the markets anticipate for this year.

Here’s where the U.S. indexes stood shortly after the opening bell at 9:30 a.m. Thursday:

Here’s what else is happening:

In commodities, bonds and cryptocurrencies:

West Texas Intermediate Crude oil rose 0.05% to $75.48 a barrel. Brent crudethe international benchmark, increased by 0.10%, to $79.08 per barrel.
Gold fell 0.75% to $2,750.00 per ounce.
The 10-year Treasury yield jumped 5 basis points to 4.665%.
Bitcoin fell 1.07% to $102,556.