4:17pm: Markets bounce back from early losses
Stocks broke a week-long losing streak to close the first trading week of the year on a positive note.
The Dow Jones climbed 340 points, or 0.8%, to settle at 42,732. The S&P 500 advanced 74 points, or 1.3%, to close at 5,942, while the Nasdaq outperformed its peers, surging 338 points, or 1.8%, to finish at 19,619.
Friday’s strong performance marked a sharp rebound from the earlier part of the week, when all three major indexes had been weighed down by losses. The turnaround was fueled by a strong rally in big technology names, with Nvidia and Tesla among the top gainers.
Looking ahead, investors are bracing for a packed data docket. Labor market indicators will be in focus, culminating in December’s jobs report, due next Friday. Additionally, comments from Federal Reserve officials will be closely monitored for clues about the central bank’s monetary policy trajectory.
3:20pm: Rivian keeps climbing
Rivian shares were still gaining ground on Friday afternoon, heading into the weekend up almost 24%.
The electric vehicle (EV) maker is making progress in its bid for profitability and overcoming a critical component shortage that had hindered production.
For the quarter ending December 31, 2024, Rivian reported delivering 14,183 vehicles, exceeding analysts’ consensus of 13,472 vehicles, according to Visible Alpha.
Production for the quarter also beat estimates, with Rivian manufacturing 12,727 units against the forecasted 11,398.
Rivian's performance marked a 42% quarter-over-quarter increase in deliveries, its highest in over a year.
1:30pm: Indices claw back after weak start to the year
Stocks were rebounding by early afternoon as they attempt to recover from a weak start to the year.
The major indices were showing positive momentum, with the Dow Jones up 0.8%, the S&P 500 climbing 1.2%, aiming to snap a five-day consecutive decline, and the Nasdaq Composite advancing 1.6%, reflecting strength in tech stocks.
Despite this recovery, the market is still on track for a weekly loss, leaving investors cautiously optimistic about overcoming recent declines.
Notable stock movements include Rivian Automotive surging 19% after confirming its 2024 production expectations, while U.S. Steel dropped 6% following President Biden's intervention in a potential acquisition.
12:10pm: Manufacturing rebounds in orders
The December ISM Manufacturing Report showed the headline index rising but staying below 50, indicating ongoing contraction.
Purchasing managers noted rising prices, signaling persistent inflation in manufacturing. A rebound in new orders, possibly due to demand being pulled forward amid trade uncertainties, drove the index higher.
Employment, however, contracted for the seventh straight month, reflecting a cooling labor market.
"The manufacturing job market continues to cool and is likely a signal of broader weakening in hiring activity," Jeffrey Roach, Chief Economist for LPL Financial commented.
"Investors should expect next week’s payroll report to show sub-200k gains. Further, new orders spiked in December as firms pulled forward demand in anticipation of imminent tariffs. Rising new orders hint at solid growth in corporate capital expenditures and a driver of GDP growth in 2025."
11:05am: Modest manufacturing growth
Tech stocks continued to lead Wall Street higher on Friday as new data showed US manufacturing rose at a modest pace in December.
The Institue for Supply Management’s Manufacturing Purchasing Managers' Index (PMI) came in at 49.3%, slightly up from 48.4% in November. A reading above 50% signifies expansion.
This marks the ninth consecutive month of contraction in the sector, which accounts for approximately 10.3% of the US economy.
The New Orders Index fell to 47.1% in December, reflecting a faster contraction in demand, while the Production Index slightly improved to 50.3%, suggesting stable production levels.
9:49am: Wall Street surges early on
Wall Street enjoyed a solid start as stocks bounced back after a lacklustre start to the year’s trading on Thursday.
The Nasdaq added 1.0% following the opening bell, while the S&P 500 and Dow Jones gained 0.8% and 0.5% respectively.
Nvidia Corp was among the early risers, adding 3.2%, while Amazon.com Inc (NASDAQ:AMZN) moved 2.3% higher.
Elsewhere, United States Steel Corp shares sunk 6.8% on confirmation president Joe Biden had blocked its planned takeover by Japan’s Nippon over national security fears.
9:10am: Biden blocks $15bn US Steel takeover by Nippon
President Joe Biden on Friday confirmed Nippon Steel’s US$15 billion bid for US Steel would be blocked over national security concerns.
Reports earlier in the day had said the deal would be blocked following a review by the Committee on Foreign Investment in the United States... Read more
Biden later issued a presidential order forcing Japan’s Nippon and US Steel “to fully and permanently abandon the proposed transaction”.
He added: “There is credible evidence that leads me to believe that Nippon Steel [...] might take action that threatens to impair the national security of the United States.”
The review had raised fears that the deal could reduce US Steel’s production capacity, potentially affecting critical industries.
6:44am: Stocks to bounce back
Wall Street appeared in brighter spirits on Friday after US stocks moved into negative territory in Thursday’s first trading session of the year.
Futures had the Nasdaq up 0.3% ahead of Friday’s opening bell, while the S&P 500 and Dow Jones were seen 0.2% and 0.1% higher respectively.
Thursday had brought declines for all three, with the Dow Jones shedding 0.4% over the course of the day.
For the S&P 500, Thursday’s drop marked its fifth consecutive decline, after December Federal Reserve meeting saw interest rate cut expectations slashed.
“Given the super-stellar year for US stocks in 2024, it’s not surprising a bit more caution has crept in amid uncertainty about monetary policy, especially with unpredictable changes from the White House expected,” Hargreaves Lansdown’s Susannah Streeter noted.