Equities Rise Intraday After Macro Data, IMF Report

Equities rose intraday on Friday, January 18, 2025, following positive macroeconomic data and an upbeat International Monetary Fund (IMF) report. The market was buoyed by better-than-expected housing starts and industry numbers, as well as an upward revision to the IMF's global growth outlook. This article explores the market's reaction to these developments and the broader implications for investors.



The Dow Jones Industrial Average (DJIA) and S&P 500 Index both gained over 1% during the intraday trading session, while the Nasdaq Composite rose by 1.3%. The rally extended a four-day winning streak for the major indices, which had snapped a three-week losing streak the previous week. The positive sentiment was echoed in overseas markets, with the pan-European Stoxx 600 rising 1.8% and Tokyo's Nikkei 225 jumping 1.2%.

The market's optimism can be attributed to several factors. First, the housing starts data showed a rebound from the previous month's decline, indicating that the housing market may be stabilizing. This is positive news for the broader economy, as housing is a key driver of economic growth. Second, the IMF's upward revision to its global growth outlook suggests that the global economy may be more resilient than previously thought. This bodes well for multinational corporations, which often drive equity market performance.



However, it is essential to consider the potential headwinds facing the market. The Federal Reserve is widely expected to raise interest rates by 75 basis points at its September 21 meeting, which could dampen equity market performance. Additionally, geopolitical risks, such as the ongoing conflict in Ukraine, could disrupt market sentiment. Investors should remain vigilant and monitor these developments closely.

In conclusion, the equity market's intraday rise on Friday, January 18, 2025, was driven by positive macroeconomic data and an upbeat IMF report. The market's optimism was reflected in the performance of major indices, both domestically and overseas. However, investors should remain cautious and monitor potential headwinds, such as interest rate policy and geopolitical risks, to make informed investment decisions.