President-elect Donald Trump's tariff plans were in focus
Despite a market closure on Thursday to honor late President Jimmy Carter's funeral, this week still packed plenty of action. Semiconductor, auto, and tech stocks rallied thanks to reported changes to President-elect Donald Trump's tariff plans. Volatility was rampant, though, as rate fears swirled after stronger-than-expected jobs data and services sector growth.
The Federal Reserve demonstrated concern over the potential impact of proposed tariffs and tax plans on inflation. Closing out the week, private payrolls for December came in much hotter than anticipated, pushing the 10-year Treasury yield to its highest level since 2023. As a result, the Dow Jones Industrial Average (DJIA), S&P 500 Index (SPX), and Nasdaq Composite (IXIC) are all eyeing their second-straight weekly losses.
Latest in Tech
Quantum computing is already proving to be a hot topic this year. Bulls saw big gains amid Rigetti Computing's (RGTI) record highs, but the sector whipsawed after Nvidia's (NVDA) CEO cast doubt, pressuring both IONQ (IONQ) and D-Wave Quantum (QBTS) lower. Meanwhile, chip stocks Advanced Micro Devices (AMD), Taiwan Semiconductor (TSM), and Micron Technology (MU) rallied on reports of strong artificial intelligence (AI) demand.
Beyond the quantum and chip realm, Microsoft (MSFT) announced layoffs after a lackluster 2024, and Amazon.com (AMZN) expanded its digital advertising offerings. Plus, Dell Technologies (DELL) is one of our top stock picks for 2025, and here's why these three stocks could drive AI data center demand.
Analyst Ratings This Week
It was a busy week for the brokerage bunch, too. American Airlines (AAL) scored two upgrades, while T-Mobile (TMUS) attracted two downgrades. RBC turned optimistic on embattled Carvana (CVNA), and Constellation Brands (STZ) saw bear notes before its earnings report. A new downgrade cut SolarEdge Technologies (SEDG) stock's latest rally short, and UBS called Novo Nordisk (NVO) an "exciting growth story." Also this week, analysts pumped the breaks on two air taxi stocks as well as streaming giant Roku (ROKU).
Earnings Season Coming Up
Earnings season starts to pick up next week, with reports from several bank names including Bank of America (BAC), BlackRock (BLK), Citigroup (C), Goldman Sachs (GS), JPMorgan Chase (JPM), Morgan Stanley (MS), PNC (PNC), and Wells Fargo (WFC). December's producer price index (PPI) and consumer price index (CPI) readings are due out as well, in addition to retail sales data. Risks keep mounting for the SPX, though, so it's a good time to review 20 profitable straddle plays from last year.