Weekly Market Update

As we begin the first full week of 2025, markets remain cautious with investors awaiting key economic data releases. Here's a recap of the past week's market action:

Monday: US stocks rose as chip names popped and investors awaited the release of key monthly jobs data later this week. The tech-heavy Nasdaq Composite led the gains, adding about 1.2%. Nvidia shares climbed more than 3% after a record revenue and strong sales forecast from server partner Foxconn.

Tuesday: Stocks reversed early gains to close firmly lower as cautious investors weighed new economic data. The S&P 500 fell over 1.1%, while the tech-heavy Nasdaq Composite lost roughly 1.9%. Nvidia shares retreated from their record close despite CEO Jensen Huang's CES keynote revealing a new AI superchip.

Wednesday: Markets were mixed, with investors absorbing a report that President-elect Donald Trump is considering declaring a national economic emergency to pave the way for proposed tariffs. The S&P 500 closed up more than 0.1%, while the Dow Jones Industrial Average added 0.25%.

Thursday: Stock markets will shutter on Thursday to mourn the death of former President Jimmy Carter.

Friday: US stocks plunged as investors digested the final jobs report of 2024. The data blew past expectations on hiring, raising more uncertainty about the path of interest rates this year.

Key Takeaways:
1. Interest Rate Uncertainty: The strong labor market reading could prompt the Fed to keep rates higher for longer.
2. Nvidia's AI Ambitions: Despite a record high close, Nvidia shares retreated from their gains after CEO Jensen Huang's CES keynote revealing a new AI superchip.
3. Market Sentiment: Investors are cautious ahead of key economic data releases and await further guidance on interest rate decisions.

Looking Ahead:
1. Jobs Report: The all-important December jobs report will be released later this week, which may provide more clarity on the path of interest rates.
2. Corporate Earnings: A clutch of upbeat earnings is expected to start the year, with major banks scheduled to post results next week.

As we navigate these uncertain market conditions, it's essential to stay informed and adjust your investment strategy accordingly.