Breaking News
Get 45% Off 0
💡 Get free investment ideas from billionaires with new 13F filings for Q4 2024
Explore for FREE

Stock market today: S&P 500 ends higher as cyclicals offset tech wreck

Published Jan 12, 2025 06:50PM ET Updated Jan 13, 2025 04:28PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
US500
+1.04%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
+0.77%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
C
+1.02%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BAC
+0.26%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GS
-0.01%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
JPM
+0.32%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com -- The S&P 500 closed higher after cutting losses Monday as a jump in cyclical stocks including energy helped offset a rotation out of growth stocks including tech amid growing worries about a Federal Reserve pause just days ahead of key inflation data. 

At 4:00 p.m. ET (21:00 GMT), Dow Jones Industrial Average 355 points, or 0.9%, while S&P 500 added 0.2%, and NASDAQ Composite slipped 0.4%. 

Energy, materials benefit from tech rotation

Cyclical stocks including  materials and energy sparked a broader market recovery, as investors rotated out of growth stocks including tech amid concerns about higher for longer interest rates. 

Energy stocks including Valero Energy Corporation (NYSE:VLO), Baker Hughes Co (NASDAQ:BKR), and Schlumberger NV (NYSE:SLB) were up more than 3%, underpinned by rising oil prices on bets for supply disruptions after the U.S. imposed sanctions on Russian oil exports.

A slew of semiconductor stocks including NVIDIA Corporation (NASDAQ:NVDA) were in the red, pushing the broader tech sector lower after the White House unveiled new rule on exports of AI chips to adversaries including China. 

The broader tech sector was also held back by concerns about a prolonged Fed pause, pushing Treasury yields higher, with some on Wall Street betting on just one rate cut this year following concerns about sticker inflation.  

Inflation data loom large as rate-cut bets diminish

With a potential revival of inflation one of the key risks facing stock markets, Wednesday’s consumer price index will be closely watched.

Economists are expecting the December CPI to show a 2.9% year-over-year increase, which would be faster than the preceding month's pace of 2.7%. On a month-on-month basis, the figure is tipped to match November's reading of 0.3%.

The upcoming inflation data are expected at a time when many are bracing for fewer Fed cuts following the much better than expected nonfarm payrolls report for December released last week. 

"According to fed funds futures, the market is looking for roughly just one cut through the end of the year, down from about twice that before Friday’s employment report, with longer-run yields pushing higher as well," Stifel said in a recent note.

While the Fed was confident that inflation had moderated enough to start cutting interest rates in September, the pace of annual price gains has remained above the Fed's 2% target. The Fed now projects inflation will rise 2.5% in 2025.

Trump is set to take office next week. 

Banks to kick off earnings season later this week; Macy's drops on soft guidance

Investors were now looking to the fourth-quarter earnings season, which is set to begin in earnest this week with prints from several major Wall Street banks.

JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS), Citigroup (NYSE:C) and Bank of New York Mellon (NYSE:BK) are due to report on Wednesday.

Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) will report on Thursday, as will major insurer Unitedhealth Group (NYSE:UNH).

Ahead of this, Macy’s (NYSE:M) stock fell 8% after the retailer said it expects fourth-quarter net sales to be slightly below the low-end of the previously issued range.

Abercrombie & Fitch (NYSE:ANF) stock slumped nearly 16% despite the retailer lifting its annual net sales growth target for the current quarter, with the increase not enough to reassure investors the company could keep up the recent growth rate.

Moderna (NASDAQ:MRNA) stock plummeted 17% after the drugmaker cut its 2025 sales forecast by $1 billion on Monday, hurt by a slow launch of its respiratory syncytial virus shot and weak demand for COVID-19 vaccines.

This week’s earnings are also set to define the next leg of movement for Wall Street, as a mix of rate jitters and profit-taking at lofty valuations also battered U.S. stocks over the past month. 

(Peter Nurse Ambar Warrick contributed to this article.)

Stock market today: S&P 500 ends higher as cyclicals offset tech wreck
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (11)
Mike Jarvis
Mike Jarvis Jan 13, 2025 5:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Somebody must be blind, it looks like another S&P 500 lose again. Or is it just hopeful thinking that they want to report another lie.
Matt Kay
Matt Kay Jan 13, 2025 5:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
snp ended the day up 15 basis point. what are you talking about
Iam Suleman
YesomiteSam Jan 13, 2025 5:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Matt Kay Mike is right. Om my mobile it also shows loss but on closer look it is showing Jan 10 close and it's stuck there
Mitchel Pioneer
Mitchel Pioneer Jan 13, 2025 4:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
BIGGEST INVESTMENT JOKE IN THE WORLD.
Jermaine Rose
Jermaine Rose Jan 13, 2025 4:43PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I need help to set up my account
Jermaine Rose
Jermaine Rose Jan 13, 2025 4:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I need help to set up my account
Alex Mostovoy
Alex Mostovoy Jan 13, 2025 4:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Who's writing these articles? What pressure??? SP500 up to the sky. Can't stop even after close - rose even more than during the whole day - LOL.
Testu1 Testu2
Testu1 Testu2 Jan 13, 2025 4:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
we're probably looking at different s&p 500 indices I guess
Ac Tektrader
Ac Tektrader Jan 13, 2025 1:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
more signal's that a Bear market maybe starting.....
Sam Richards
Sam Richards Jan 13, 2025 1:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So much for valuable predictions
Sam Richards
Sam Richards Jan 13, 2025 1:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Before it was a definitive 'bear market starts now', as it morphs into a maybe.
Bandya Mama
Bandya Mama Jan 13, 2025 11:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The benchmark S&P 500 hit a two-month low as bond yields surged on views the Fed will keep interest rates higher for longer this year. Around 11 AM ET, the broad S&P 500 index was down 0.43%, or 24.89 points, at 5,802.15, the blue-chip Dow up 0.42%, or 177.76 points, at 42,116.21 and tech-heavy Nasdaq down 1.04%, or 199.90 points, to 18,961.43. The benchmark 10-year yield was last up at 4.786%.
Matt Kay
Matt Kay Jan 13, 2025 11:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
ef off AI
Mitchel Pioneer
Mitchel Pioneer Jan 13, 2025 9:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Another launch of Apollo Ponzi, as a never ending string of miracles befalls the criminally manipulated, laughingstock of the investing world.
Alex Lopez
Alex Lopez Jan 13, 2025 9:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
permabear!!
Ac Tektrader
Ac Tektrader Jan 13, 2025 9:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Mitch is not a trader,just another senile old Guy, who likes to complain about things he doesn't understand ....kind of reminds you of the new leader of the free world, doesn't it.
Sam Richards
Sam Richards Jan 13, 2025 9:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sounds like you actually.
Larry Deangelis
Larry Deangelis Jan 13, 2025 7:52AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Looks like the Trump trade may become the Herbert Hoover trade over the next 4 years!
Erik Stone
mooneyhill1 Jan 13, 2025 1:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I say the U.S. stock market futures roaring back despite falling down.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Apple
Continue with Google
or
Sign up with Email