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Stock Market Update Friday January 17, 2025

Stock Market Update Friday January 17, 2025 The S&P 500 (SPX) advanced 1% today, capping off a strong week with a +3% gain, effectively recovering from last week’s sell-off. The 6,000 level on the SPX500 has been a key technical and psychological marker over the past 30+ days, playing a pivotal role in today’s options expiration dynamics and contributing to the upward drift in equities


Next week’s earnings calendar features key reports from Netflix (NFLX), Procter & Gamble (PG), Abbott Laboratories (ABT), United Airlines (UAL), General Electric (GE), American Airlines (AAL), Texas Instruments (TXN), American Express (AXP), and several others.


The Nasdaq-100 (QQQ) outperformed with a 1.7% gain, while the Russell 2000 (IWM) lagged slightly, closing +0.4% near the $225 level, a critical support and resistance zone for IWM over the past few years.


Away From Stocks: Treasury yields were mixed to flat, reflecting market caution.

In commodities, crude oil continued its pullback, declining further and pausing its upward trajectory since late December. This decline in oil prices provided a modest tailwind for equities. On the economic data front, it’s expected to be a relatively light week domestically, with initial jobless claims and global PMI releases taking center stage. That said, economic developments out of Japan and Europe could act as additional market catalysts, particularly as investors assess global growth trends and central bank policy outlooks.


The VIX closed below 16 ahead of the three-day weekend—markedly lower than earlier this week, yet still shy of signaling a definitive "low-volatility grind" higher for equities. Large intraday and day-to-day swings remain a possibility, particularly with mega-cap tech earnings on the horizon. Following this recent rally, the market now has some breathing room to assess its next directional move. Notably, today’s options expiration alleviated a substantial amount of overhead supply, potentially clearing the way for the market to test new highs, should momentum persist. Looking ahead, Treasury yields and the unfolding earnings season will serve as critical catalysts for determining the market’s next phase.


Reminder: U.S. markets will be closed on Monday in observance of Martin Luther King Jr. Day. A detailed preview of the upcoming week will follow on Monday evening.

 

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