On January 2, 2025, U.S. stock markets experienced a rocky trading week, with Friday showing some gains but overall ending lower for the week. The S&P 500 increased by 1.26% on Friday, yet still saw a weekly decline of 0.48%. The downturn has led to disappointment among investors hoping for a typical Santa Claus Rally during the holiday season. In overseas markets, South Korea’s Kospi rose nearly 2%, while China’s CSI 300 dropped about 0.6%.
Boeing, struggling financially since 2018 due to significant incidents including 737 Max crashes, is facing leadership changes with new CEO Kelly Ortberg tasked with improving production and quality. Meanwhile, Microsoft announced a substantial $80 billion investment in data centers aimed at AI workloads for fiscal 2025. In the tech space, shares of Chinese company Roborock surged over 3% after unveiling an innovative vacuum model with AI-powered features.
Looking ahead, investors are focused on upcoming economic reports from the U.S. Federal Reserve and the December jobs report, which could provide insights into future interest rate decisions. UBS remains optimistic, predicting a bull market with the S&P 500 reaching 6,600 by year-end, underpinned by strong profit growth.
