NVDA
NVIDIA
-- 149.430 FUBO
FuboTV
-- 5.060 TSLA
Tesla
-- 411.050 MU
Micron Technology
-- 99.260 AMD
Advanced Micro Devices
-- 129.550 
03 Jan Market Rally Driven By Buy-The-Dip Interest, Can This Interest Continue?
The stock market experienced a mixed week, marking the final sessions of 2024 and the Santa Claus Rally period. While major indices lost momentum towards the year's end, a slight rebound was observed as the week concluded. Small-cap stocks outperformed larger peers, leading the Russell 2000 to rise by 1.1%. In contrast, the S&P 500 and Nasdaq Composite each declined by 0.5% for the week.
Overall, the S&P 500 surged by 23.3% in 2024, and the Nasdaq Composite closed 28.6% higher for the year.
Despite the recent downturn, the S&P 500 ended the Santa Claus Rally period lower, which historically averages a 1.3% gain since 1950, according to The Stock Traders Almanac.
Stocks surged on Friday, led by a rally in shares of major technology companies, as the market rebounded from a sluggish start to 2025.
The DJIA rose 0.8%, while the S&P 500 and Nasdaq Composite added 1.26% and 1.77%, respectively. The S&P 500 and Nasdaq snapped five-session losing streaks, while the Dow ended a streak of four straight days of declines.
Stocks had stumbled at the end of 2024.the DJIA posted its worst month in more than two years in December after riding high for most of the year, and the weakness carried into the first session of the new year on Thursday.
Despite the hefty gains on Friday, the major indexes finished the holiday-shortened week with losses, with the Dow shedding 0.6%, while the S&P 500 and Nasdaq each fell 0.5%.
All Eleven S&P 500 Sector Closed In The Green
All eleven sector closed in the green, Friday we saw consumer discretionary closed above 2% at 2.42% which was helped by Tesla (TSLA) with 8.22% on Friday.
Information Technology sector closed with 1.62% gain as semiconductor names like SMCI, $NVIDIA (NVDA.US)$ and AMD gained more than 2%, $Palantir (PLTR.US)$ also gained 6.25% to help the information technology sector.
My holding positions in NVDA and PLTR has helped my portfolio while the sector gained.
Only three S&P 500 sectors closed higher this week:
Energy: +3.2%
Real Estate: +0.6%
Health Care: +0.01%
The sectors experiencing the largest declines were:
Materials: -2.1%
Consumer Discretionary: -1.5%
Consumer Staples: -1.4%
Trading volume was light due to holiday-related market closures, with several foreign markets closed or closing early for the New Year's holiday. U.S. markets were open for a full day on Tuesday and closed on Wednesday.
Friday Market Rally Driven By Buy-The-Dip interest
The stock market rallied on Friday, driven by buy-the-dip interest. The S&P 500 closed 1.3% higher than Thursday but was 0.5% lower since the start of the Santa Claus rally period. Gains were broad-based, with 24 of the 30 Dow components registering gains, and all 11 S&P 500 sectors closing higher. Mega-cap names outperformed, boosting overall index performance.
Economic data for Friday saw December ISM Manufacturing Index came in at 49.3% with consensus 48.5% while previous stands at 48.4%. EIA Natural Gas Inventories was -116 bcf while previous was recorded at -93 bcf.
The yield on 10-year Treasurys, which is sensitive to expectations for future interest rates, was at 4.604% Friday afternoon, up from 4.58% Thursday.
2-year treasury was at 4.287% after declining about 1% from Thursday.
Stocks To Watch
Cerence AI (CRNC) announced an expanded collaboration with Nvidia (NVDA), which led to a significant surge in Cerence's stock price by over 100%. This partnership aims to enhance Cerence's large language models through Nvidia AI Enterprise, creating a buzz among AI stocks. As a result, Nvidia's shares rose by about 4%, while other AI-focused companies like Microsoft (MSFT) and $Alphabet-A (GOOGL.US)$ also experienced gains.
$Quantum-Si (QSI.US)$ announced a direct offering of 15.6 million shares at $3.20 each, aiming to raise approximately $50 million. The company plans to use the proceeds for working capital and general purposes, but the announcement led to a more than 12% drop in its share price.
I think we might have missed the golden cross formed before we saw a surge up, and MACD is showing a very strong bullish upside, with MTF giving a strong upward trend signal.
As we can see that QSI begin to trade in a sideway with attempt by the bull to make another new highs, but did not succeed on Friday having drop more than 8%, but I would think that there might be further correction on Monday (06 Jan) which might give us an opportunity to get into this stock.
On the longer period, I foresee QSI to be trading on its upside.
Boeing (BA) and the U.S. Department of Justice are negotiating a revised plea deal related to the 737 MAX crashes. A previous agreement was rejected due to a diversity and inclusion provision, and both parties are working towards a new arrangement by February 16.
Nvidia (NVDA) remains the most owned semiconductor stock among U.S. fund managers, with ownership rising to 72% by the end of December 2024. Other heavily owned semiconductor stocks include Broadcom (AVGO) and Applied Materials (AMAT).
Microsoft (MSFT) plans to invest $80 billion in data centers for AI infrastructure in fiscal 2025, with over half of the spending in the U.S. This move underscores Microsoft's commitment to AI and its partnerships with companies like OpenAI.
Summary
We saw the market rally came back after it pause when we start 2025, this week with job reports, fed minutes and a day of mourning for ex-President Carter, we might see investors taking profit after the short rally, and some sectors might see the buy-the-dip interest intensified.
Appreciate if you could share your thoughts in the comment section whether you think market buy-the-dip interest would continue.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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