Trump’s first actions and job data to test market in January

After closing the books on a banner year for us stocks, investors expect to ride seasonal momentum into mid-january when a slaw of economic data and a transition of power in vashington courses.

The S & P 500 Rose Roghly 25% in 2024 Through Dec. 27, While The Technology-Heavy Nasdaq Composite Index (.IXIC), which surpassed 20,000 for the first time in December, is up more than 31%.

On Friday, however, stocks sold off amid some profit taking and questions about how Markets Cold Perform in January, According to Analysts and traders.

“There are concerns that maybe the first part of (next) Year can involve some repositioning and reallocation of funds and that that are trading today and next week are probable just trying to get a little bit ahead T Pavlik, Senior Portfolio Manager at Dakota Wealth.

Stocks tend to do well in the last five trading days of December and into the first two days of january, a phenomenon dubbed the santa claus rally, which has driven s & p gains of an average of 1.3% SINCE Stock trader’s almanac .

Despite the Friday Selloff, for the last five Trading Sessions, The S & P Rose 1.77%, While The Nasdaq was up 1.8%.

Just how long upward Momentum Lasts will depend on Several Forces that Cold Help Drive Markets in 2025.

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Monthly US Employment data on Jan. 10 Should Give Investors a Fresh View into the Health and Strength of the US Economy. Job growth rebounded in November Following Hurricane- and Strike-Related Setbacks Earlier in the year.

The Market’s Strength will be tested again shortly after, when us companies start reporting fourth -Quarter earnings.

Investors Anticipate A 10.33% Earnings per Share Growth in 2025, Versus A 12.47% Expected Rise in 2024, According to LSEG Data, Although Excitement Over Pressident -ECT DONALD TRUCT DONALD TRUMP ‘ Sthe the outlook for some sector like banks, energy and crypto .

“There’s the hope that taxes and regulations will be lowered or reduced next year, that will help support corporate duty, which is done in the first place,” SAID MIT ROSTMENT Ice at Angeles Investments.

Trump to release 25 Executive Orders on First Day

Trump’s inauguration on Jan. 20 count also throw the markets some curve balls. He is expected to release at least 25 Executive Orders in his first day on a range of issues from immigration to energy and crypto policy.

Trump has also Threfs on Goods from China and LeVies s.

Helen Given, Associate Director of Trading at Monex Usa, Said a New Administration Always Brings with a large degree of uncertainty. There is also a good chance the impact of the Trump Administration’s Expected Trade Policies is far from full priced into global currency markets, She added.

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“We’re looking ahead to see which proposed policies actually are enacted, which might be further down the pipeline,” Ms. Given said, adding she expected a big impact on the euro, mexican peso, the canadian dollar, and the chinese yuan.

The conclusion of the federal reserve’s first Monetary Policy Meeting of the year in Late January Could also present a challenge to the US stocks rally.

Stocks tumbled on dec. 18 when implemented its third interest-also the year and signalled fewer cuts in 2025 because of an uncertain inflex And valuations.

Still, That Cold be Good for Alternative Assets Like Cryptocurrency. The incoming crypto-friendly trump administration is adding to a number of catalysts that are boosting crypto investors’ Confidence, Said Damon Polistina, Head of Research at Investment Platformant Platform

Bitcoin surgged Above $ 107,000 This month on Hopes of Friendlier Trump Policies.