PUT IN WORK (2/3/2025)

The stock market started the week off down, climbing steadily from Monday through Thursday. Investors maintained that upward momentum despite the Fed’s Wednesday meeting, but it was all reversed on Friday. In total, the S&P 500 (SPY) ended the week down 1%, and the Nasdaq (QQQ) ended the week down 1.4%.

The market’s wobbly performance last week can be attributed to several things, but Monday, specifically, resulted from an AI scare brought about by China’s new open-source AI known as DeepSeek. Stocks opened significantly lower than they’d closed in the previous trading day. Tech stocks all across the board were down as a result, but come Tuesday, they bounced back swiftly. Earnings and a corrective response are to thank for the quick turnaround, but also, the Fed meeting was off to a positive start, according to investors. It was expected that the Fed would leave interest rates unchanged, and come Wednesday, that’s exactly what we got.

Bitcoin maintained a price above $100k while stocks dipped a bit lower—tech stocks, in particular, continued to decline gradually. The S&P 500 and the Nasdaq ended Wednesday down 0.5% and 0.2% respectively—ultimately, they held their own. Thursday saw stocks push higher once again as investors took in various positive earnings from companies that digested the week’s earnings, but other than that, there wasn’t much to be said. Friday, however, took a turn for the worst, with stocks starting the day in the green before plummeting by close. This downward spiral can be attributed to Trump declaring that tariffs on countries such as Canada and Mexico were to be implemented as early as Saturday. This news is sure to shake up the market, which becomes evident when you look at the stock futures, which, at the time of writing this, are down several percent across the board.

(Nasdaq ETF (QQQ) price from January 2023 - 2024 — each candle is 1 week. Chart provided by tradingview.com.)

PORTFOLIO UPDATE

Ultimately, the stock market didn’t have a great week. Our portfolio reflects this negative movement, with almost all our stocks inching lower. This week may be a challenge for investors, but even so, we’re along for the ride. We plan to hold all currently owned stocks for the foreseeable future. As always, thank you for reading, and happy investing.