Index Jumps as Supermicro and Tesla Bounce Back
Main points
- The S&P 500 rose 1.3% on Friday, January 3, snapping a five-session losing streak as stocks look to regain momentum at the start of the new trading year.
- AMD shares soared, rebounding from five days of losses as the server maker seeks to resolve accounting-related issues last year.
- Tesla shares have also recovered from a series of recent losses, with the automaker saying its sales in China hit a new record in 2024.
Major U.S. stock indexes rose on the final day of the holiday-shortened week, rebounding from a sluggish start to 2025.
The S&P 500 rose 1.3%, ending a five-day losing streak that began after the Christmas holiday. After a period of lull entering the year-end, a resurgence in technology stocks helped the Nasdaq rise 1.8%, while the Dow Jones Industrial Average rose 0.8% on Friday.
Super Micro Computer fell for a fifth straight day as the benchmark index fell.SMCI) shares rebounded sharply on Friday, rising 10.9%, leading the S&P 500 index higher. The server maker’s stock has been highly volatile in 2024 as accounting-related issues delayed its annual report. Supermicro’s chief executive assured investors that the delayed filing would be completed before Nasdaq’s latest deadline of February 25, downplaying the threat that the exchange could delist the stock.
Nuclear stocks continue to heat up as a new year of trading begins, Artificial Intelligence (AI) Data Center Needs Help brighten the future of generators. Vistra Stock (visual effects) surged 8.5%, while Texas utility NRG Energy (NRG) increased by 6.2%.
Tesla (Tesla) shares soared 8.2%, recovering from heavy losses in the previous session. The electric vehicle (EV) maker reported lower-than-expected vehicle deliveries in the fourth quarter, with its full-year 2024 delivery total below 2023 levels. However, sales in China hit a record last year, the automaker said on Friday, a sign of the strength of the world’s largest auto market, where Tesla faces fierce competition from domestic electric car makers.
Dollar Tree (DLTR) shares fell 4.1% on Friday, the largest decline among S&P 500 stocks. The discounter has launched same-day delivery at its stores in an effort to compete more effectively with online retailers, but the move could hamper Dollar Tree’s already razor-thin profit margins. Analysts also expressed concerns about Dollar Tree’s transition to a multi-price model, noting that the transition did not deliver the expected benefits of same-store sales growth and highlighting that management had lowered its forecasts for stores that would be converted to the new model.
U.S. Surgeon General Dr. Vivek Murthy announces stock prices of alcoholic beverage manufacturers are under pressure Warning about increased cancer risk Related to drinking. The top health official has called for warning labels to be added to alcohol products to inform consumers of cancer-related dangers, similar to those on tobacco packages. Shares of brewing giant Molson Coors (tap) fell 3.4%.
Celanese (CE) shares fell 3.4% to a 52-week low. In its latest earnings report in November, the specialty chemicals supplier missed sales and profit expectations, citing weak demand 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.