Dow Futures rise 0.16% as Nasdaq falls over 2% after choppy start to 2025

Dow Jones futures rose slightly overnight, along with S&P 500 futures and Nasdaq futures, as the stock market rally extended a year-end losing streak into 2025 with modest losses on Thursday after big intraday swings.

The Nasdaq undercut its 50-day moving average but closed above that key level. In Thursday’s trading, the Dow Jones Industrial Average fell 0.4%, while the S&P 500 index and Nasdaq composite both declined by 0.2%. The small-cap Russell 2000 edged up 0.1% but ended well off early highs.

Many stocks flashed buy signals Thursday, including Meta Platforms (META), Cloudflare (NET), Vistra (VST), Talen Energy (TLN), and Nvidia chipmaker Taiwan Semiconductor (TSM). Nvidia (NVDA) rose but remained below a key level. However, this is not considered an especially good time for making new purchases.

Why BATMMAAN stocks are investors’ favorites: Tesla, Apple, Nvidia and more

Apple (AAPL) stock slumped 2.6% to 243.85, falling below its 21-day line and impacting the major indexes. Apple plans to offer short-term iPhone discounts in China amid intense competition, and UBS has cut its estimates due to weak overall iPhone sales. Tesla (TSLA) also experienced a sell-off, which weighed on the S&P 500 and Nasdaq.

In contrast, Meta stock climbed to 604.91 intraday, rebounding from its 50-day line to reclaim a 602.95 buy point while breaking a trendline; it closed up 2.3% at 599.24. Nvidia and Meta Platforms are on the IBD Leaderboard, with Tesla listed on the Leaderboard watchlist. Additionally, Cloudflare and Taiwan Semiconductor are on the IBD 50, with Cloudflare also featuring on the IBD Big Cap 20.

U.S. stock futures remained little changed late Thursday following a volatile start to the year. Dow futures added 68 points, or 0.16%, while S&P 500 futures and Nasdaq 100 futures gained 0.24% and 0.36%, respectively. Stocks began January with a choppy trading session, as investors took profits from notable 2024 gainers such as Apple and Tesla, leading the Dow to end the day lower by more than 150 points.

The stock market concluded 2024 on a negative note; the S&P 500 finished the year with four consecutive days of losses, the first occurrence since 1966. Despite achieving a 23% gain for the year, it declined by 2.5% in December. The anticipated Santa Claus rally, which typically sees gains during the last five trading days of one year and the first two of the next, did not occur.

Liz Ann Sonders, chief investment strategist at Charles Schwab, told CNBC’s “Closing Bell” on Thursday that much of the recent weakness was likely sentiment-driven. She remarked, “I don’t think there was really any kind of prime catalyst. I think it was a little bit more of an exhaustion from a sentiment standpoint.”

The economic calendar for the week appears thin on significant catalysts, but traders are preparing for the latest reading of the ISM Manufacturing Index. Federal Reserve officials Thomas Barkin and Mary Daly are also scheduled to speak. As of Thursday’s close, both the Dow and S&P 500 were lower by more than 1%, with the Nasdaq Composite dropping over 2%.

Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

Featured image credit: Kerem Gülen/Ideogram