U.S. Stock Indexes Advance; Magnificent Seven Tech Shares Rise -- WSJ

Dow Jones
18 Jan
 

By Caitlin McCabe and David Uberti

 

The stock market just notched its best week since the November "Trump bump."

All three major indexes advanced Friday, with each of the Magnificent Seven tech stocks logging gains. Chip stocks rose. Manufacturers climbed. Big banks continued their rally following bumper earnings reports earlier this week.

After Donald Trump won re-election in November, Wall Street hopes for tax cuts and deregulation propelled stocks higher. This week, it was muted inflation data and positive U.S. growth projections that buoyed investors.

The Dow Industrial Average rose 3.7% this week, while the S&P 500 climbed 2.9%. The tech-heavy Nasdaq Composite was also up this week, by 2.4%.

Overseas, indexes in China crept higher after the country said its economy expanded 5% last year, following a barrage of stimulus. In Europe, the U.K. pound and bond yields weakened after disappointing retail-sales data there.

In recent trading:

--U.S. stocks gained. The Dow increased 0.8%, or 335 points. The S&P 500 was up 1%. The Nasdaq rose 1.5%.

--The 10-year U.S. Treasury yield wavered, settling at 4.610%.

--The Federal Reserve left a central-bank climate group, following a string of private financial institutions that have similarly exited green coalitions.

--Oil prices rose for a fourth-straight week while investors gauged the incoming Trump administration's plan to ramp up sanctions. Benchmark U.S. futures closed Friday at $77.88 a barrel.

--Goldman Sachs rose Friday to an all-time high after the Wall Street firm's earnings report earlier in the week showed surging profits last quarter.

--Bitcoin's price reached $104,767.70, the highest level in a month, ahead of Trump's inauguration Monday. Shares in bitcoin-buying firm Microstrategy jumped 8%.

--Most European stocks rose, with the U.K.'s FTSE 100 and Germany's Dax index closing at records.

Stock and bond markets will be closed on Monday, for Martin Luther King Jr. Day. This year, MLK Day is also Inauguration Day.

 

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

 

(END) Dow Jones Newswires

January 17, 2025 16:27 ET (21:27 GMT)

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