The Nasdaq outperformed while U.S. stocks overall were flat. The Dow Jones Industrial Average lost 0.2% for its seventh straight day of losses, while the S&P 500 added 0.12%. Shares of a prominent tech firm jumped 24%, launching it into the ranks of high-performing stocks.
Europe’s regional STOXX 600 fell 0.53%, snapping a three-week winning streak. OpenAI co-founder Elon Musk pushed to create a new direction for the company in 2017, alleging that he sought majority equity and full control. When he didn’t achieve this, he walked away.
Musk later asked a federal court to block certain actions by OpenAI. Technology companies that have previously clashed with U.S. President-elect Donald Trump are now stepping in to support him with donations. One company has confirmed a $1 million donation, joined by OpenAI CEO Sam Altman, who is also making a personal contribution of the same amount.
South Korean President Yoon Suk Yeol was impeached after 204 lawmakers in the National Assembly voted in favor of the motion. Prime Minister Han Duck-soo will take over the presidential duties temporarily. On Sunday, Han spoke with U.S. President Joe Biden, and the country’s finance ministry stated it would maintain stability.
Nasdaq performance amid Dow decline
Interest rates and inflation are major focal points this week. The U.S. Federal Reserve’s rate-setting meeting concludes Wednesday, while the personal consumption expenditures price index, the Fed’s preferred inflation gauge, comes out on Friday.
Market predictions can often mislead investors. Despite slipping 0.6% last week and snapping its three-week winning streak, the S&P 500 is still up almost 27% this year. This surge surpasses predictions made by top financial strategists at the end of 2023.
For instance, Dubravko Lakos-Bujas, chief U.S. equity strategist, expected the S&P 500 to close the year at 4,200. Even the most optimistic prediction of 5,200 by John Stoltzfus, chief investment strategist at Oppenheimer, fell short of capturing the market’s rally this year. Despite market strategists anticipating the S&P to finish 2025 at 6,630, investors should approach such forecasts with caution.
Positive sentiment among investors is supported by a variety of factors, including President Trump’s favoring of the stock market, steadily loosening monetary policy, and the prospect of lower corporate taxes. However, future challenges, such as a resurgence of inflation due to tariffs and trade wars, remain possible. Inflation already “looks a little stuck,” said Robert Kaplan, vice chairman of the Federal Reserve.
Still, there’s hope that predictions may prove prescient, potentially ending 2025 with the S&P at Savita Subramanian’s target of 6,666.
