Stocks Snap out Of a Week Long Drop – US Market Wrap

Investors have finally been enticed to purchase the dip in US stocks. Following a five-day decline that reduced share prices by more than a trillion. Wall Street ended the longest equities losing streak since April.

The Nasdaq 100 recovered its losses on Friday, rising 1.7%, while the S&P 500 jumped 1.3%. The increases helped to mitigate the week’s selloff, which had lasted from the end of December to the first trading day of the year.

Stocks rose when Mike Johnson was reelected as House speaker, implying that Republicans will be able to unite behind the president-elect’s business-friendly deregulation program. Bond yields rose, with the benchmark 10-year yield reaching 4.6% after Richmond Fed President Tom Barkin stated that he preferred to maintain interest rates low for an extended period of time.

Earlier data showed that US manufacturing increased at a modest rate in the last month of 2024. The Institute for Supply Management’s gauge reached 49.3, exceeding expectations, but stayed below 50, which implies economic expansion. New orders reached their greatest level since the beginning of last year. Treasuries fell after the report, while stocks kept their gains.