Day Traders Diary

1/24/25

The major averages pulled back to end a good week with the major averages notching back to back positive weeks. The Dow Jones Industrial Average dropped 140 points, or 0.3%, to 44,424. Friday's losses snapped a four-day winning streak for the three major indexes. The S&P 500 fell 17 points or 0.29% while the Nasdaq fell 99 points or 0.5%.

All three major averages posted their second positive week with the S&P 500 and Nasdaq rising 1.7% on the week, while the Dow climbed 2.2%, In addition to hitting fresh intraday records this week, the S&P 500 also notched a new all-time closing high on Thursday.

Despite Friday's retreat, excitement toward Trump's pro-business policies has largely pushed risk assets higher this week as investors focused on his inauguration. On Thursday, Trump stated he wanted interest rates to drop immediately and long with oil prices. Saudi Arabia intends to invest $600 billion in the US but made no mention of oil prices. The price of oil was quiet today, but down on the week closing at $74.60 a barrel.

Bond yields were also lower on the week with the 10-year Treasury yield down 2 basis points to 4.61%. The 2-year Treasury yield lost 2 basis points as well to 4.26%. Fed funds futures are pricing in a more than 99% chance that the central bank will leave interest rates unchanged at their next meeting, according to CMEGroup's FedWatch tool.

 

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