S&P 500 Climbs 0.5% after Double Digit 2025 Gains
The S&P 500 is higher than it was the day before thanks in part to Nike's strong performance and is still near its record high.
Quick overview
- The S&P 500 started 2025 strong, gaining 16% overall and an additional 0.5% on the first Friday of the year.
- Nike's stock rose 4.3% on Thursday and continued to climb due to significant share purchases by its CEO and a director, boosting consumer confidence.
- Tech stocks in Asia are experiencing record highs, positively impacting Nasdaq futures and suggesting a strong year ahead for American tech companies.
- Despite a lackluster end to the previous year, all major U.S. stock indices posted double-digit gains for 2025, with lower-than-expected inflation providing a solid foundation for market growth.
In 2025, the S&P 500 added 16% to its total and then gained another 0.5% on Friday as the markets began to open, marking a solid start to the year.
Nike (NKE) made impressive gains Thursday on the S&P 500, adding 4.3% and helping to propel the S&P 500 higher. That index is more elevated on Friday morning than its counterparts, the Nasdaq and Dow Jones, which gained 0.1% and 0.4%, respectively against the S&P 500’s 0.5% increase.
Nike held onto its gains with another 0.44% increase Friday morning thanks to its CEO Elliot Hill buying up $1 million in the company’s shares. Last month, one of the company’s directors, Tim Cook, purchased $3 million in company shares. These buying decisions have helped increase consumer confidence in the brand and its future at a time when shareholders are worried about profit margins and consumer demand.
Stocks Start the Year Strong
Nasdaq futures are higher for Friday after news from Asia showed that tech stocks are booming there, and that should spill over to gains for American tech companies as well. In fact, tech stocks in Asia are at a record high, which could indicate a bumper year for tech stocks globally. Taiwan, Singapore, and South Korea all posted incredible gains in the technology stocks and rising consumer interest in that market. Nasdaq futures climbed 100 points as a result.
The Dow Jones is also getting a bump from Nike’s impressive gains. That is the top-performing stock by a significant margin on the DJIA index. Because that stock alone stands out as the only one to have greater than 1% gains for the day, we could see a dip later on Friday.
The last couple weeks of the year did not produce a strong Santa Clause rally for the stock market as expected. Stocks trended lower around Christmas but still remained close to record highs. So, the markets started the year near all-time highs but not showing strong upward momentum. We could see the market dip through next week as stocks stabilize.
In broader stock market news, all three major stock indices for the United States made double digit gains for 2025. They closed off the year elevated and defied expectations that tariffs would tank the economy and the stock market. Now, it seems as though tariffs are a distant and small problem for the market, and investors may not have much to worry from on that front.
Inflation is lower than anticipated for the new year, giving the market a strong platform from which to launch its January movements. The inflation reading for December came in at 2.7%, which is the lowest inflation has been since July and much lower than the expected 3.1% rate. Investors have reason to be optimistic for the market for now.
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