PARIS (Reuters) – The New York Stock Exchange opened higher on Thursday for the first session of the year after a solid 2024 year with hopes that the imminent inauguration of Donald Trump and additional cuts in key interest rates the US Federal Reserve (Fed) in 2025 will support businesses and the economy in general.
In early trading, the Dow Jones index gained 291.18 points, or 0.68%, to 42,835.40 points. The broader Standard & Poor’s 500 rose 29.05 points, or 0.49%, to 5,910.68 points. The Nasdaq Composite takes 86.76 points, or 0.45%, to 19,397.55 points.
In 2024, the Fed’s easing of key rates for the first time since 2020, investors’ enthusiasm for artificial intelligence (AI) and expectations around companies likely to benefit from President-elect Donald Trump’s program have enabled indices on Wall Street to record significant gains.
The S&P 500 index thus experienced its best two-year performance in 2024 since 1997-1998, while stock valuations rose above their long-term averages. Earnings per share of S&P 500 companies are expected to increase 10.67% in 2025, according to data compiled by LSEG.
Traders anticipate an S&P 500 index between 6,000 and 7,000 points this year, compared to a Tuesday close of 5,881 points.
“Investors are hoping that an ideal scenario would be a year 2025 with promises of tax cuts and deregulation under a second Trump presidency,” explains Susannah Streeter, head of foreign exchange and markets at Hargreaves Lansdown.
“But with new trade wars emerging, if threats of tariffs are implemented, bearish movements could return and disrupt what has been a fairy tale for the US stock market,” she warns. .
Among the first data published in 2025, the statistic on weekly unemployment claims in the United States shows that they decreased last week, to 211,000. The Labor Department’s official monthly report on job creation, unemployment rate and wages will be released next week.
In terms of values, Tesla is rising before the publication of its quarterly delivery figures. Other “tech” giants like Meta, Amazon, Nvidia and Broadcom are also in demand while the yield on ten-year US Treasury bonds falls by around three basis points, to 4.5469%.
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(Written by Claude Chendjou, with contributions from Johann M Cherian and Purvi Agarwal in Bangalore, edited by Blandine Hénault)
