Rally Pauses, for S&P Still up on Week
January 24,2025 04:39 pm EST
The S&P 500 closed lower after hitting new records on Friday, as investors took some profit to end a solid week centered on President Donald Trump's return to the White House.
The Dow Jones Industrials faltered 140.82 points to conclude Friday at 44,424.25.
The much-broader index sagged 17.47 points to 6,101.24.
The NASDAQ Composite sank 99.38 points to 19,954.30. Friday's losses snapped a four-day winning streak for the three major indexes.
The S&P 500 and NASDAQ each rose around 1.7% this 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.
Beyond politics, market participants kept an eye on corporate news and earnings reports. Novo Nordisk rallied more than 8% following positive early-stage results for a weight-loss drug. Texas Instruments, on the other hand, slid more than 7% on weak earnings guidance.
Excitement toward Trump's pro-business policies pushed risk assets higher this week with investors focused on his inauguration. Traders were also relieved that there have only been threats on the tariff front from Trump — instead of formal action — during his first few days in the White House.
All three major averages are on track to post their second positive week, signaling the bull market is back in full force after December's pullback. All three indexes have added more than 2% week to date, a second straight week with gains of that size.
Friday's action comes after Trump said on Thursday that he would “demand that interest rates drop immediately” when addressing world leaders in Davos, Switzerland. The president also said he would ask Saudi Arabia and other OPEC nations to lower the price of oil.
Prices for the 10-year Treasury gained ground, lowering yields to 4.62% from Thursday's 4.65%. Treasury prices and yields move in opposite directions.
Oil prices shied away six cents to $74.56 U.S. a barrel.
Prices for gold hiked $12.80 an ounce to $2,778 U.S.
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