Stock Market Update Wednesday January 22, 2025 Following Netflix’s stronger-than-anticipated earnings-fueled rally, the large-cap indices opened on a positive note and maintained upward momentum throughout the session. The S&P 500 ETF (SPY) and its underlying index (SPX) posted gains of +0.6%, while the Nasdaq 100 ETF (QQQ) outperformed, finishing +1.3% higher. In contrast, small caps lagged, with the Russell 2000 ETF (IWM) closing down -0.6%. In sector-specific moves, technology stocks led the charge, with notable strength from Oracle (ORCL) and Nvidia (NVDA), which helped propel the broader tech sector higher. Breadth deterioration alongside a higher VIX despite rising indices suggests a less robust rally under the surface.
Away From Stocks: Treasuries faced moderate selling pressure, with the iShares 20+ Year Treasury Bond ETF (TLT) declining by 0.5%. After a week of rebounding off its lows and offering support to equity markets, TLT failed to deliver similar tailwinds today. Correspondingly, yields on 10-year and 30-year Treasurys ticked higher, rising to 4.6% and 4.82%, with modest increases of three and two basis points, respectively.
Crude oil prices extended their downward trend, with WTI crude settling slightly lower near $75 per barrel. The United States Oil Fund (USO) also edged lower, providing incremental relief for equities. In contrast, gold maintained its upward trajectory, closing at $2,756 per ounce, as investors sought safe-haven assets.
Bitcoin retreated marginally, slipping to $104,000, while the CBOE Volatility Index (VIX) remained steady at 15, signaling muted overall market volatility. Notably, the slight uptick in the VIX contrasted with equity gains, reflecting weakening market breadth compared to prior sessions.
