Stocks Retreat Post-Election Amid Strong Job Data, Interest Rate Concerns
Market Reaction to Economic Indicators
Stocks erased their earlier post-election gains following a December jobs report that exceeded expectations. The yield on the 10-year Treasury note rose above 4.7%, while the 30-year note approached 5%, signaling potential challenges for the housing market.
Investors now face the possibility that there may not be interest rate cuts in 2025. Next week, the December inflation readings will be released, which could confirm rising inflation and lead to a further decline in stocks. President-elect Donald Trump’s policies are expected to contribute to inflation in the near term.
The upcoming week also marks the start of the next earnings season, bringing reports from major banks. If banks showcase the strong earnings growth that is anticipated, it could help stabilize the current market downturn. As 2025 begins with volatility, the MarketBeat team of analysts is ready to assist investors in navigating these market movements. Below are our top stories from this week.
Articles by Jea Yu
In these turbulent times, healthcare stocks are drawing attention. This week, Jea Yu highlighted how Cigna Group Inc. (NYSE: CI) is emerging as a leading health insurance company, positioning itself at the forefront of opportunities in the sector for 2025.
Investors who invested in gene-editing stocks at the start of 2024 found the slow pace of advancements disappointing. Yet, Yu explained that progress continues and identified three gene-editing stocks that could rebound in 2025.
President-elect Trump plans to sign executive orders on January 20 related to increasing U.S. oil production and exploration. Energy stocks are likely to benefit from this, but Yu pointed out three additional stocks set to gain from lower fuel costs and higher airline profits.
Articles by Thomas Hughes
NVIDIA Corp. (NASDAQ: NVDA) remains a key player in the market. Thomas Hughes discussed highlights from CEO Jenson Huang’s keynote at the Consumer Electronics Show (CES), suggesting that recent technological innovations could help the stock outperform current forecasts.
As winter chills many regions, interest in natural gas stocks is rising. Hughes noted the demand for natural gas is increasing, leading to recommendations for three natural gas stocks and ETFs.
The topic of congressional stock trading has ignited interest among MarketBeat subscribers. Hughes highlighted the top five stocks purchased by members of Congress in 2024 and explained why these are likely to be good investments in 2025.
Articles by Sam Quirke
An article attracting attention this week covered the robust demand for dividend-paying stocks. Sam Quirke discussed the elite group known as Dividend Kings, companies that have consistently increased their dividend for at least 50 years. He spotlighted three Dividend Kings that are expected to reward investors regardless of market performance.
News from NVIDIA’s Jenson Huang impacted shares of Advanced Micro Devices Inc. (NASDAQ: AMD) negatively. Quirke explained that while this contributed to a decline, AMD’s fundamental strengths suggest it may be one of the best stocks to buy in 2025.
Investors keen on technology stocks should note that the upcoming earnings season may produce significant movements. Quirke suggested that, following a successful rally in 2024, Amazon.com Inc. (NASDAQ: AMZN) looks poised for further breakout success in 2025.
Articles by Chris Markoch
The performance of the Russell 2000 indicates that 2025 might be a breakout year for small-cap stocks, including potential penny stocks. Chris Markoch examined the prospects for three penny stocks that could provide investors with significant long-term returns.
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Market Insights: Key Stocks to Watch for Potential Growth in 2025
Markoch also examined the rising demand for data centers as a positive indicator for GE Vernova LLC (NYSE: GEV). The company, which separated from General Electric Co (NYSE: GE) in 2024, has already seen a dramatic 181% increase in its stock value. Its focus on natural gas and nuclear technology positions it for what could be a multi-year growth phase.
Moderna Inc. (NASDAQ: MRNA) experienced a surge this week, mirroring the uptick in shares of other vaccine manufacturers following the first confirmed bird flu death in the United States. Although this rally was short-lived, Markoch provided insights on why institutional investors view Moderna’s product pipeline as a compelling speculative Buy.
Articles by Ryan Hasson
E-commerce continues to expand, yet many investors focus solely on the U.S. market. This week, Ryan Hasson suggested that investors broaden their horizons to consider MercadoLibre Inc. (NASDAQ: MELI), a frontrunner in Latin America’s e-commerce space. After experiencing significant growth since 2020, the recent sell-off presents a buying opportunity.
Nebius Group NV (NASDAQ: NBIS) is emerging as a noteworthy player thanks to its role in the expanding AI infrastructure market. Having just begun public trading in October, this week Hasson analyzed whether NVIDIA‘s investment might attract further interest in the stock.
This week featured an interesting note from Bill Ackman regarding Fannie Mae (OTC: FNMA) and Freddie Mac (OTC: FMCC). Although both companies repaid funds received in the 2008 financial crisis, they still navigate political and regulatory challenges. Nevertheless, Ackman believes that if these entities are allowed to go public, they could yield substantial returns.
Articles by Gabriel Osorio-Mazilli
As the new year begins, investment banks often release their annual targets. The Goldman Sachs Group Inc. (NYSE: GS) has published its macro outlook for 2025, which Gabriel Osorio-Mazilli summarized by highlighting three stocks that may thrive next year.
Many traders aim to kickstart the year by purchasing undervalued stocks before they appreciate. This week, Osorio-Mazilli identified three stocks that currently offer great value after recent declines.
For those with a more speculative approach, Osorio-Mazilli examined stocks with high short interest, which could potentially lead to a short squeeze.
Articles by Leo Miller
With drones making headlines lately, Leo Miller highlighted the potential for investment in this sector rather than viewing it as merely a trend. He discussed two autonomous drone stocks that investors seeking growth should consider.
Electric vehicle sales are on the rise in the U.S. and China. While the industry does face challenges, Miller pointed out that investing in three ETFs focused on electric vehicles might be a smart move for navigating these obstacles.
As earnings season approaches next week, some companies are expected to announce new stock buybacks. Miller made a bullish case for three stocks that appear to be solid candidates for buybacks in 2025.
Articles by Nathan Reiff
While Tesla Inc. (NASDAQ: TSLA) often dominates discussions about electric vehicle stocks, Nathan Reiff urged investors to consider additional options. This week, he suggested three EV stocks that may provide worthwhile alternatives to Tesla.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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