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The S&P 500 jumped 1% on Friday, January 17, 2025, entering the three-day weekend on a high note as prospects for additional interest rate cuts in 2025 rebounded.
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Intel shares took off following reports that the semiconductor giant could be an acquisition target.
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Freight carrier JB Hunt posted lower-than-expected sales and profits for the fourth quarter, and its shares fell.
Major US equity indices push higher to end the week, with traders set for a day off while observing Martin Luther King Jr Day on Monday which will also see the swearing in of Donald Trump for his second presidential term.
Stocks' strength to close the week coincided with renewed optimism that the Federal Reserve could continue to cut interest rates in 2025, reinforced by signs of declining inflation. (Here are four reasons inflation is still around.)
The S&P 500 was up 1% on Friday. Strength in the technology sector helped lift the Nasdaq 1.5%, while the Dow ended the day 0.8% higher.
Intel (INTC) shares rose 9.3%, besting the S&P 500, amid reports that the semiconductor giant it could be a takeover target. Friday's push extended higher earnings that Intel stock posted earlier in the week after the chipmaker said it would transfer its venture fund to an independent entity, with the company remaining an investor. Intel's interim CEO said the move would help the company boost efficiency and maximize the value of its assets.
SLB (SLB), the world's largest oilfield services company, reported better-than-expected profits for the fourth quarter, increased its dividend, and increased its share repurchases. Although SLB struck a cautious tone for 2025, stating that year-on-year revenue growth would be limited as high oil supply levels restrain oilfield activities, its shares jumped 6.1% on the back of the strong earnings report.
Shares of Truist Financial (TFC) gained 5.9% after the bank holding company topped quarterly sales and profit estimates. Both net interest income and non-interest income moved higher from their year-ago levels, helping to drive the strong results. An increase in average deposit balances also contributed to Truist's performance, which came despite a decline in average loan balances.
JB Hunt Transport Services shares (JBHT) suffered the steepest decline of any S&P 500 stock on Friday, falling 7.4% after the shipping company's fourth-quarter sales and profit fall short of expectations. The falling numbers weighed on performance, and the company reported a drop in revenue across all its segments. CEO JB Hunt said the company remains focused on repairing its margins as it navigates the headwinds of the freight industry.