Dow, S&P, Nasdaq recover as tech exits and rate-cutting expectations

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U.S. stocks jumped on a rally in tech stocks on Friday as investors reviewed a week of key data and earnings reports and looked at policy changes under the Trump administration.

The Dow Jones Industrial Average (^DJI) gained 0.7%, while the S&P 500 (^GSPC) rose 1%, snapping a day of losses for the major gauges. The tech-heavy Nasdaq Composite ( ^IXIC ) was up 1.6% as shares of Nvidia ( NVDA ) and Tesla ( TSLA ) returned to the green.

Markets did well as investors took stock of higher bank earnings and inflation in recent days. Resuscitated bets on The interest rate will decrease. After a big rally on Wednesday, stocks are on course for big weekly gains, with the 10-year Treasury yield (^TNX) returning to trade around 4.6% on Friday.

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Dwellings rose faster than forecast in December, and U.S. industrial production beat estimates. Friday’s data added to the picture of strength in the U.S. economy, adding to the balanced optimism.

Meanwhile, tech stocks were making a comeback, with Apple ( AAPL ) rallying slightly in morning trade after posting its worst loss since August. Chipmakers such as Micron ( MU ) joined Nvidia in taking gains, while Coinbase ( COIN ) was among the top crypto-linked names as bitcoin ( BTC-USD ) continued its advance above $100,000.

In the final trading day before Donald Trump begins his second term as president, minds are on potential policy issues. Fears that his plans for tariffs, taxes and debt – as announced by Treasury pick Scott Bessent on Thursday – could push up inflation. Inauguration Day is Monday, when markets are closed to celebrate the Martin Luther King Jr. holiday.

Trump’s arch-rival China’s economy grew more than expected last year, hitting a record high following Beijing’s 5 percent economic stimulus. But Asian shares lost ground on Friday as investors weighed the potential damage from promised tougher tariffs.

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Tik Tok has lost the Supreme Court battle to stop the US ban

The U.S. Supreme Court upheld a law on Jan. 19 that would block TikTok unless it is sold to an owner that is not controlled by a foreign enemy, a ruling that casts new uncertainty on the app used by 170 million Americans, Yahoo Finance’s Alexis Keenan and Daniels reported. Hawley.

The court sided with the US government’s argument that the relationship between TikTok parent ByteDance and Beijing posed a national security threat to ask Congress to sell it.

TikTok has argued that it is entitled to the Constitution’s First Amendment protections, and that the proprietary algorithm is in fact an editorial expression that qualifies as speech.

The court’s decision may leave TikTok’s fate in the hands of President-elect Trump, who has vowed to “save TikTok” and asked the court to suspend the transfer deadline. Trump takes office on January 20.

Read more about TikTok’s fate in America here.
Stocks jump when a cut-rate outlook shines

A rally in tech stocks led to a jump on Wall Street on Friday, as investors took in a week of favorable inflation readings and impressive corporate earnings, turning market sentiment to optimism as the Federal Reserve reconsiders its rate-setting policy.

The Dow Jones Industrial Average (^DJI) rose 0.7%, while the S&P 500 (^GSPC) added 1%, snapping a day of losses for the major gauges. The tech-heavy Nasdaq Composite ( ^IXIC ) put up 1.6% as shares of Nvidia ( NVDA ) and Tesla ( TSLA ) returned to the green.

Markets did well as investors took stock of higher bank earnings and inflation in recent days. Resuscitated bets on The interest rate will decrease. Shares are on track for big weekly gains after a big rally on Wednesday, while the 10-year Treasury yield (^ TNX) to ar 4,6 on Friday.
Housing starts to beat forecasts due to strong multi-family construction

Housing begins in December, with a multi-family development being purchased by a pickup truck.

Data from Census Bureau Housing starts jumped 15.8 percent in December to an annual rate of 1.49 million, beating economists’ expectations of 1.32 million a year.

Single-family startups had modest growth. Construction rose 3.3 percent to 1.05 million, the strongest pace since February 2024. Meanwhile, construction for multifamily housing grew by nearly 62 percent.

After the release, FWDBONDS Chief Economist Christopher Rapkey said, “Housing will start at the end of the year, but that doesn’t mean the country is out of the woods when it comes to problems in the housing sector.”

The economist added, “There is still not enough housing in the country, and housing construction is historically depressed.”

Up until this point, new construction in 2024 was the slowest since 2019. Bloomberg. Despite the increase in construction, builders are dealing with higher mortgage rates. Mortgage rates rose to 7.04% this week, the highest level since May 2024, according to Freddie Mac. Rates on home loans tend to follow a sharp rise in US Treasury yields following strong jobs data.
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