Day Traders Diary

1/2/25

The major averages reversed course, trading lower in a choppy first of the new year as the slump from 2024 extended into January. The Dow Jones Industrial Average fell 151 points or 0.36% after rallying 300 points on the open. The S&P 500 fell 13 points while the Nasdaq dropped 30 points.

In the tech space, Apple and Tesla fell 2% and 6% respectively. Tesla was a dog today after reporting an annual decline in deliveries for 2024. Chipmaker Nvidia was a bright spot, up 3%, Micron was up 3% as well while the rest of the chips were quiet.

Quiet today overall for the broader market. The yield on the 10-year Treasury was down a basis point to 4.56%. The 2-year Treasury yield was also down a basis point to 4.24%. Bitcoin started the new year well up 3% today after a 1% yesterday.

Oil, gold and bitcoin all performed well today. Oil has perked up as of late on hopes of improving demand in China. Gold is at a two-week high on concerns of looming trade tariffs.  

Part of the weakness today could've been profit-taking after a strong 2024. Last year the S&P 500 surged 23% but ended the year with four straight down days for the first time since 1966. The Dow rose 12% while the Nasdaq was the standout, up 28% for 2024.