What Caused the Stock Market’s First Positive Week for 2025?
The December doldrums have come to a close and the US stock market indices are all up as major banks celebrate better than expected earnings reports from this quarter.
The Dow Jones climbed 0.98% today, while the S&P 500 gained 1.10% and the Nasdaq Composite added 1.57% in one of the best days for the stock market all year. This now marks the first positive week for the stock market since the beginning of the year, and it looks like the low gains for December are finished.
The stock market phenomenon known as the “Trump bump” caused the indices to climb fast in November. Much of those gains have been lost and were almost wiped out completely by last week, but this week has been a major turnaround for the market.
The stock indices are being propped up by a number of high performing stocks, particularly in the technology sector. Some of those same stocks were low in December but have since gained momentum and are climbing fast.
The stock market is also benefiting from better than expected quarterly returns for major banking firms, which include Goldman Sachs, JPMorgan Chase, and Morgan Stanley. The week of banking quarterly reports has helped boost the market for days and spur discussion about strong economic growth.
Stocks Performing Well This Week
Tesla (TLSA) stock climbed 4.85% today as the electric vehicle manufacturer is benefiting from connections to Donald Trump as well as from better than expected industrial and housing data.
Meta Platforms (META) and Alphabet (GOOG) are both rising as well, gaining 0.55% and 1.57%, respectively. They are making steady progress thanks to that same economic data, and we expect to see the market continue strong as next week begins. We should see a continuing rally in anticipation of Donald Trump taking office in a couple of days. His business-focused administration is expected to boost the economy over the long term.
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