Market Update: Fed’s Rate Cut Plans Impact Stocks as Investors Seek Gains
This week, stock prices generally fell after the Federal Reserve announced that fewer rate cuts are anticipated in 2025. While the market had adjusted to a slower pace of cuts, the Fed’s confirmation prompted investors to take profits amid an ongoing market rally.
To cap off the week, investors received positive news as the Personal Consumption Expenditure (PCE) index showed a slight cooling below expectations. However, this report did not alter the Fed’s stance.
As most economic data is now available, investors will search for cues during the upcoming holiday-shortened week. Markets will close at 1:00 p.m. EST on Christmas Eve and will be closed on Christmas Day. The MarketBeat analysts remain vigilant for signs of a potential Santa Claus rally and are prepared to identify any opportunities that arise.
Articles by Jea Yu
In his analysis of semiconductor stocks, Jea Yu highlighted Semtech Corp. (NASDAQ: SMTC), a manufacturer of analog and mixed-signal chips. These components are increasingly sought after for artificial intelligence (AI) applications, causing the stock to rebound into growth mode after experiencing a downturn earlier this year. Yu elaborated on the potential for further gains.
He also discussed the possible effects of proposed tariffs from the incoming Trump administration on the chip sector, focusing on two companies heavily affected by Taiwan and China trade dynamics.
While many restaurant stocks have struggled this year due to cautious consumer spending, two notable fast-casual chains have thrived. Yu examined why investors may prefer Chipotle Mexican Grill Inc. (NYSE: CMG) over CAVA Group Inc. (NYSE: CAVA) in 2025 based on individual goals for growth versus value.
Articles by Thomas Hughes
Micron Technology Inc. (NASDAQ: MU) faced a significant drop in stock value this week after reporting mixed earnings and weak guidance for upcoming quarters. Nevertheless, Thomas Hughes encouraged speculative investors to view this pullback as a buying opportunity given the company’s essential role in the burgeoning AI sector.
Hughes also pointed to Cintas Corp. (NASDAQ: CTAS) as another stock worth considering. Despite its relatively stable performance over the last decade, the earnings report revealed just decent results, prompting Hughes to make a technical and fundamental case for owning it at current levels.
Rather than focusing solely on buying the dip, Hughes examined stocks that have performed well this year yet have been upgraded further. He provided investors with insights on three highly regarded stocks in 2024, detailing their potential for continued growth.
Articles by Sam Quirke
If you invested in Salesforce Inc. (NYSE: CRM) this year, you are likely pleased with your returns. Sam Quirke analyzed the CRM software giant and indicated that latecomers still have a chance for around a 20% gain, potentially more.
Conversely, shareholders of SolarEdge Technologies Inc. (NASDAQ: SEDG) have experienced a lackluster year. However, Quirke shared insights from Goldman Sachs suggesting that the stock could be poised for a rebound, along with a technical setup that might support Goldman’s optimistic view.
Typically, discussions about autonomous vehicles revolve around automotive stocks like Tesla Inc. (NASDAQ: TSLA). However, Quirke spotlighted Aurora Innovation Inc. (NASDAQ: AUR), a key player in autonomous trucking. The stock has surged over 300% in 2024 and is expected to continue rising with a commercial launch anticipated in 2025.
Palantir Technologies Shines in Nasdaq-100 Amid Market Shifts
Understanding Palantir’s Unique Position in Today’s Market
Articles by Chris Markoch
Palantir Technologies Inc. (NASDAQ: PLTR) is now a member of the prestigious Nasdaq-100, and its stock price has been climbing rapidly. This week, Chris Markoch discussed the importance of recognizing what makes Palantir unique, rather than merely different, before considering an investment in PLTR stock.
Opportunity Knocks for Consumer Discretionary Stocks
Markoch also identified three consumer discretionary stocks that are likely to bounce back as consumer confidence is expected to rise in 2025.
Reevaluate Your Portfolio: Focus on Growth Stocks Under $100
As the year ends, investors should consider rebalancing their portfolios. For those interested in growth stocks priced under $100, Markoch offered three suggestions worth exploring.
Articles by Ryan Hasson
Utilities Stocks Face a December Dip, Presenting Buying Opportunities
Utilities stocks are traditionally seen as safe havens for investors. However, as Ryan Hasson noted, one of the sector’s leading ETFs has declined by about 7% this December. Investors might consider this downturn as a chance to invest in nuclear stocks that Hasson highlighted.
Semiconductor Sector on the Cusp of Recovery
Signs indicate that the semiconductor sector could be gearing up for a revival. Hasson pointed out that investors might look back on Broadcom Inc. (NASDAQ: AVGO) as an early indicator of this positive shift.
The Walt Disney Co.’s Turnaround: More to Come?
The Walt Disney Co. (NYSE: DIS) presents a compelling comeback story. Following a solid rally as the year concludes, Hasson explored whether DIS stock could continue gaining momentum into 2025.
Articles by Gabriel Osorio-Mazilli
Oil Stocks Face Challenges but Hold Potential for Investors
The performance of oil stocks has struggled in 2024 due to falling oil prices. However, Gabriel Osorio-Mazilli believes the trend towards value stocks could make 2025 an ideal time to consider investing in oil companies.
Despite a perception that many stocks are overvalued, several companies are initiating share buybacks. Osorio-Mazilli highlighted that this strategy signals a company’s belief in its own undervaluation. Currently, three firms have announced aggressive buyback plans.
Inflation Update: Egg Prices and Stock Opportunities
Recent inflation data has confirmed that prices, including those for eggs, are still on the rise. This trend indicates that it may be wise for investors to consider buying one or more of the three stocks set to benefit from rising egg prices.
Articles by Leo Miller
Small-Cap AI Stocks to Watch in 2025
As artificial intelligence remains a hot investment theme in 2025, Leo Miller examined three small-cap AI stocks expected to show significant revenue growth, potentially boosting their stock valuations.
Natural Gas Stocks: An Overlooked Investment in Data Centers
In addition to the focus on data centers in 2025, Miller urged investors to consider natural gas stocks. He pointed out three companies leading the way in powering data centers with natural gas.
Market Dynamics Impact Novo Nordisk’s Performance
New competition in the weight loss market has resulted in Novo Nordisk A/S (NYSE: NVO) losing most of its remarkable gains from 2023 and 2024. Miller discussed why several factors could lead to an opportunity for investors to buy NVO stock in 2025.
Articles by Nathan Reiff
Bright Prospects for Industrial Stocks: A 2025 Overview
With expected changes in tax policy and a friendlier regulatory climate, industrial stocks are forecasted to perform well in 2025. This week, Nathan Reiff shared three industrial stocks that could be appealing for long-term investors.
Aerospace and Defense Stocks: Hidden Gems for Strong Returns
The aerospace and defense sectors are also anticipated to see growth in 2025. Reiff identified three under-the-radar stocks that may yield significant returns for investors.
Quantum Computing: The Next Frontier for Risk-Tolerant Investors
Although AI is currently leading the investment wave, Reiff advised that quantum computing could be the next big advancement. He highlighted two quantum computing stocks that might attract risk-tolerant investors in 2025.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
