(Bloomberg) — A rally in the world’s largest tech companies lifted stocks at the start of the first full trading week in 2025. The dollar trimmed losses as President-elect Donald Trump said his tariff plan won’t be pared back.
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The group that has powered the equity bull market gained further traction on Monday, with Nvidia Corp. jumping 5% toward a record ahead of a speech from chief Jensen Huang. The yield on US 30-year bonds hit the highest since late 2023 as the market prepares for $119 billion of debt issuance this week. A Bloomberg gauge of the greenback pared a slide of as much as 1% after Trump denied his aides are considering narrowing his tariff plan so that it would only apply to limited critical imports.
“2025 should see a volatile market,” said Paul Nolte at Murphy & Sylvest Wealth Management. “The large swings may provide opportunities for both buyers and sellers in 2025.”
The trading desk of JPMorgan Chase & Co. led by Andrew Tyler says while risks to stocks’ fierce rally are mounting, a bearish downturn remains “extremely unlikely” amid strong economic growth. Gains in US stocks this year will be driven mainly by corporate earnings, according to Goldman Sachs Group Inc.’s David Kostin, who expects the S&P 500 to hit 6,500 by year-end.
“While I do anticipate heightened earnings volatility, I do think we will have a stronger earnings season as the macro data continues to inflect higher,” Tyler at JPMorgan said.
The S&P 500 rose 1.2% to around 6,015. The Nasdaq 100 added 1.6%. The Dow Jones Industrial Average gained 0.7%. A gauge of the “Magnificent Seven” megacaps” climbed 2.2%. Qualcomm Inc. introduced new chips designed to power computers capable of running the latest artificial intelligence software yet cost as little as $600. Citigroup Inc. led gains in banks on a bullish analyst call.
The yield on 10-year Treasuries advanced one basis points to 4.61%. The Bloomberg Dollar Spot Index fell 0.6%. The loonie rose as much as 1.2%, before paring gains. Justin Trudeau resigned as leader of Canada’s Liberal Party. Bitcoin pushed above $100,000.
Traders are also gearing up for Friday’s jobs report, which is expected to show employers tempered hiring to wrap up a year of moderating yet still-healthy labor market. The data is unlikely to alter the view of Federal Reserve officials that they can slow the pace of rate cuts amid a durable economy and inflation that’s dissipating only gradually.