Stock Market Bounces Back: Investors Aim to End 5-Day Losing Streak
Friday, Jan 3, 2025 6:03 pm ET
SMCI --
TSLA --
The stock market today saw a much-needed resurgence, with major indexes bouncing back from a five-day losing streak. The S&P 500 added 1.3% on Friday, January 3, 2025, snapping a streak of five straight down days as stocks looked to regain their momentum to start the new trading year. Super Micro Computer shares surged, bouncing back from five straight down days as the server maker aims to move past last year's accounting-related issues. Tesla stock also recovered from a string of recent losses as the carmaker said it achieved a sales record in China for 2024.

The S&P 500 jumped 1.3%, snapping a five-session losing streak that began when the markets returned from Christmas break. After a stagnant stretch heading into the end of the year, a resurgence in the tech sector helped lift the Nasdaq 1.8%, while the Dow industrials gained 0.8% on Friday. Following five straight days of declines in line with the drops in the benchmark index, Super Micro Computer (SMCI) shares roared back on Friday, bouncing 10.9% to lead the S&P 500 higher. The server maker's stock logged a highly volatile performance in 2024 as accounting-related issues led to the delay of its annual report. Supermicro's CEO assured investors that the postponed filing will be complete by the updated Feb. 25 deadline issued by the Nasdaq, downplaying the threat that the exchange could delist the stock.
Nuclear energy stocks continued to heat up as the new year of trading gets underway, with elevated demand from artificial intelligence (AI) data centers helping brighten the outlook for power generators. Shares of Vistra (VST) surged 8.5%, while shares of fellow Texas-based utility NRG Energy (NRG) added 6.2%. Tesla (TSLA) stock soared 8.2%, recovering from heavy losses posted in the prior session. The electric vehicle (EV) manufacturer reported fewer-than-expected vehicle deliveries for the fourth quarter, with full-year delivery totals for 2024 falling short of the 2023 levels. However, the carmaker said Friday that sales in China hit a record high last year, a sign of strength in the world's largest car market, where Tesla faces stiff competition from domestic EV producers.

Dollar Tree (DLTR) shares dropped 4.1% on Friday, losing the most of any S&P 500 stock. The discounter launched same-day delivery at its stores as it aims to compete more effectively with online retailers, but the move has the potential to hinder Dollar Tree's profit margins, which are already minimal. Analysts have also expressed concerns about Dollar Tree's transition to a multi-price point format, noting that the transformation has not yielded the expected benefits for same-store sales growth and highlighting management's reduced forecasts for stores that will be converted to the new format.
Shares of alcoholic beverage producers came under pressure after U.S. Surgeon General Dr. Vivek Murthy warned about elevated cancer risks associated with alcohol consumption. The top health official called for additional warning labels on alcohol products to advise consumers about the cancer-related dangers, similar to the warnings placed on tobacco packaging. Shares of brewing giant Molson Coors (TAP) tumbled 3.4%.

Celanese (CE) shares sank 3.4% to a 52-week low. In its most recent earnings report, released in November 2024, the provider of specialty chemicals missed sales and profit estimates, citing demand weakness in various end markets, including paints, coatings, and construction. At that time, Celanese also announced a dividend cut, effective in the first quarter of 2025.
In conclusion, the stock market today saw a much-needed bounce back, with major indexes snapping a five-day losing streak. The resurgence was driven by a combination of factors, including a resurgence in the tech sector, positive news from Tesla, and a general sense of optimism among investors. However, it remains to be seen whether this rally can be sustained in the long term, as geopolitical tensions and trade risks continue to pose challenges to the global economy. As always, investors should remain vigilant and stay informed about the latest developments in the market.