US stocks record a modest start to the year and optimistic expectations on the stock exchanges

Stock futures on Wall Street rose slightly with the start of trading for 2025 amid hopes that the market can regain the momentum that pushed it to record two consecutive years of annual gains above 20%, according to what the American network CNBC reported.

Stock futures rise

Dow Jones Industrial Average futures rose 67 points, or 2%, while S&P 500 futures rose 13 points, or 0.2%, and Nasdaq 100 futures rose 56 points, or 0.3%.
Read also: US stock indices end the 2024 sessions on a decline

Strong results at the end of 2024

Despite stocks falling in weak trading in the final days of 2024, the year ended with strong results overall.
The S&P 500 rose 23% last year while the 30-stock Dow added nearly 13%. Thanks to enthusiasm around artificial intelligence and interest rate cuts, the Nasdaq Composite rose 29%.

Shares of the Great Seven

Members of the so-called Big Seven were behind much of the market movement in 2024, with Nvidia gaining 171% while iPhone maker Apple rose 30%.
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But those big gains led to some profit-taking at the end of the year as the S&P 500 posted four straight days of decline.

What does a small rise in stocks indicate?

US stock index futures rose, signaling a cautious start to 2025 after a combination of hype around artificial intelligence and low interest rates led to stunning gains in stock markets last year, Investdopedia reported.
Stocks and Trump’s policies
Trump’s economic and international policies are expected to be the focus of most attention this month as he takes office later in the month.
Trump has pledged to implement largely expansionary policies, but he has also pledged to impose heavy trade tariffs on major US trading partners such as China, Canada and Mexico.
Uncertainty over Trump’s policies has caused investors to turn cautious in recent weeks, sparking some profit-taking after an initial rally on Wall Street in response to Trump’s election win in early November.

What are investors afraid of?

Investors also fear that Trump’s policies may keep inflation high in the long run, prompting the Fed to cut interest rates less.
The central bank recently signaled a slowing pace of interest rate cuts in 2025, citing concerns about steady inflation and a strong labor market.