Forefront’s Market Notes
January 6th, 2025
Stocks edged lower last week despite a powerful end-of-week rally.
The Standard & Poor’s 500 Index lost 0.48 percent, while the Nasdaq Composite Index slid 0.51 percent. The Dow Jones Industrial Average fell 0.60 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, dropped 0.90 percent.1,2
Selling Then Buying
Stocks were under pressure right out of the gate on Monday for no apparent reason other than worries over the loss of year-end momentum. By the end of trading on Monday, markets recovered some losses, but the selling picked up again on Tuesday.3,4
After being closed for the New Year’s holiday, stocks opened higher for the first trading day of 2025. But sellers gained the upper hand by the end of trading. On Friday, Investors perked up with tech stocks leading a recovery rally that erased most of the week’s losses.5,6
Source: YCharts.com, January 4, 2025. Weekly performance is measured from Friday, December 27, to Friday, January 3. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.
Megacap’s Mega Influence
Megacap tech stocks have captured many headlines over the last two years as the S&P 500 posted double-digit returns (24 percent for 2023 and 23 percent for 2024).
And for a good reason—megacap tech stocks were doing most of the work. For example, during the past 12 months of trading, more than half (53 percent) of the S&P 500’s return can be attributed to the Magnificent Seven–the seven megacap tech companies that most investors would consider household names.7
Tips for Good Recordkeeping
When you file your tax return, the first step is to prepare your records. Good recordkeeping throughout the year can make filing your taxes easier.
Here are some recordkeeping tips:
- Identify all sources of income.
- Keep track of expenses.
- Add tax records to your files as you receive them to make filing easier.
- Organize support items that you may need to clarify your tax return.
*This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS8
Footnotes and Sources
1. The Wall Street Journal, January 3, 2025
2. Investing.com, January 3, 2025
3. CNBC.com, December 30, 2024
4. The Wall Street Journal, December 31, 2024
5. CNBC.com, January 2, 2025
6. CNBC.com, January 3, 2025
7. The Wall Street Journal, December 31, 2024
8. IRS.gov, October 2, 2024
Stock market calendar this week:
| Time (ET) | Report |
| MONDAY, JAN. 6 | |
| 9:45 AM | S&P final U.S. services PMI |
| 10:00 AM | Factory orders |
| TUESDAY, JAN. 7 | |
| 8:00 AM | Richmond Fed President Tom Barkin speaks |
| 8:30 AM | U.S. trade deficit |
| 10:00 AM | ISM services |
| 10:00 AM | Job openings |
| WEDNESDAY, JAN. 8 | |
| 8:15 AM | ADP employment |
| 2:00 PM | Minutes of Fed’s December FOMC meeting |
| 3:00 PM | Consumer credit |
| THURSDAY, JAN. 9 | |
| 8:30 AM | Initial jobless claims |
| 10:00 AM | Wholesale inventories |
| FRIDAY, JAN. 10 | |
| 10:00 AM | Consumer sentiment (prelim) |
| 8:30 AM | U.S. employment report |
| 8:30 AM | U.S. unemployment rate |
| 8:30 AM | U.S. hourly wages |
| 8:30 AM | Hourly wages year over year |
Most anticipated earnings for this week
Did you miss our last blog?
Forefront Market Notes: December 23rd
About Amit: I am a first generation American, the son of a working-class Indian family, and I lived through my parents’ struggle to find their place in this country, to put down roots that would sustain them as well as their children in a new land. As they encouraged me to excel in school and fostered my hobbies and interests, I was keenly aware of the dynamic between them. I understood that there was a difference between where they came from individually and where we were now. They worked hard in their individual capacities, but they weren’t always on the same page about financial issues – and that can make or break a family’s future. I didn’t know it at the time, but this laid the groundwork for my passion towards financial services and helping families succeed.