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The S&P 500 rose 1% on Friday, January 17, 2025, entering a three-day weekend at high levels as prospects for further rate cuts in 2025 recovered.
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Intel shares rose on reports that the semiconductor giant could be a takeover target.
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Freight carrier JB Hunt posted lower-than-expected revenue and profit for the fourth quarter, and its shares fell.
Major US stock indices pushed higher to end the week, with traders set on a day off in observation of Martin Luther King Jr. Day on a Monday on which Donald Trump is also sworn in for his second presidential term.
The strength among stocks to end the week coincided with rejuvenated optimism that the Federal Reserve could continue to cut rates into 2025. supported by indications of declining inflation. (Here are four reasons inflation is still there.)
The S&P 500 rose 1% on Friday. The strength of the technology sector saw the Nasdaq rise 1.5%, while the Dow Jones ended the day 0.8% higher.
Intel (INTC) shares rose 9.3%, marking the S&P 500’s best performance, amid reports that the semiconductor giant could be a takeover target. Friday’s rise extended gains posted by Intel shares earlier this week after the chipmaker said it would convert its venture fund into a standalone entity, with the company remaining an investor. Intel’s interim CEO said the move would help the company increase efficiency and maximize the value of its assets.
SLB (SLB), the world’s largest oilfield services company, reported better-than-expected fourth-quarter earnings, raised its dividend and stepped up share buybacks. Although SLB struck a cautious tone for 2025, indicating that year-over-year revenue growth would be muted as high oil supply limits oilfield operations, shares rose 6.1% in the wake of the strong earnings report.
Shares of Truist Financial (TFC) rose 5.9% after the bank holding company beat quarterly revenue and profit expectations. Net interest income and non-interest income increased above last year’s levels, supporting the strong results. An increase in average deposits also contributed to Truist’s performance, which came despite a decline in average loan balances.
Shares of JB Hunt Transport Services (JBHT) had the steepest decline of all S&P 500 stocks on Friday, falling 7.4% after the shipping company’s fourth-quarter revenue and profit fell short of expectations. Declining volumes weighed on performance and the company reported sales declines across all its segments. JB Hunt CEO said the company remains focused on rebuilding its margins as it tackles headwinds in the freight sector.