US stocks stepped higher on Friday, looking to shake off a downbeat start to 2025 as markets waited for manufacturing data and Tesla (TSLA) shares looked for a comeback.
The S&P 500 (^GSPC) rose 0.6%, while the Dow Jones Industrial Average (^DJI) were also up roughly 0.5%. The tech-heavy Nasdaq Composite (^IXIC) put on 0.8%.
Friday is the last day for the S&P 500 (^GSPC) to pull off a “Santa Claus” rally, watched closely as a historical harbinger of solid returns for January and the year.
But hopes are dim after the benchmark fell again on Thursday to notch a five-session losing streak, the longest since April. The S&P 500 and Dow are both on track to end the holiday-shortened week with losses of over 1%, while the Nasdaq is facing a weekly drop of almost 2%.
Meanwhile, Tesla shares nudged up after the EV maker said its sales in China climbed to a record high in 2024. Tesla’s first yearly decline in global sales dragged the stock down 6% on Thursday.
US Steel (X) stock slid almost 8% after President Joe Biden blocked Japanese buyer Nippon Steel’s $14.9 billion takeover of the company, which had become a lightning rod for political opposition.
On the data docket, an update on US manufacturing due later should provide insight into whether the health of the US economy will keep the Federal Reserve reluctant to cut interest rates.
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