Second Week of January 2025

THE WELL-TH NOTES

Weekly data-driven insights on the markets and economy

1. Market dips deep

Stocks fell on Tuesday as strong economic data raised doubts about potential Federal Reserve rate cuts later this year, causing Treasury yields to spike. The S&P 500 dipped 1.11% to 5,909.03, the Dow Jones Industrial Average lost 178.20 points to 42,528.36, and the Nasdaq Composite slid 1.89% to 19,489.68. Major tech stocks also saw declines, dragging the market lower.^[i]

2. Meta’s major moves

In a controversial move that is sparking debate, Meta CEO Mark Zuckerberg announced Tuesday morning that the company is ending its third-party fact-checking program in the United States and switching to a Community Notes program. The move came just hours after Meta announced it was adding three new members to its board: Dana White, John Elkann and Charlie Songhurst.^[ii]

3. Trump’s tariff tactics

As of Wednesday morning, President-elect Donald Trump is considering declaring a national economic emergency to implement his tariff policies. This would grant him the power to create a tariff program through the International Economic Emergency Powers Act. Stock futures weakened on Wednesday morning and the U.S. dollar gained in value against most other currencies.^[iii]

4. Gold hits four-week peak

Gold prices surged to a near four-week high on Wednesday, driven by a weaker-than-expected private employment report for December, which reassured some investors that the Fed might ease rates this year. Spot gold rose 0.5% to $2,663.79 per ounce, while U.S. gold futures gained 0.5% to $2,679.70. ^[iv]

5. Unemployment claims fall

The number of Americans filing new unemployment claims fell to an 11-month low last week, indicating a stable labor market despite a slowdown in hiring. This cooling labor market may allow the Fed to keep interest rates unchanged in January. Initial claims for state unemployment benefits dropped to 201,000, the lowest level since February 2024.^[v]

6. And the SAG nominees are…

Nominations for the 31st annual Screen Actors Guild Awards were announced on Wednesday. Movies like “Emilia Pérez,” “Wicked,” and “Conclave” received nominations, while “Shōgun” and “Abbott Elementary” were recognized on the TV side. Kristen Bell will host the ceremony, streaming live on Netflix on February 23 at 8 p.m. ET.^[vi]

^[i] Singh, Pia and Kailai Han, Lisa. “Dow falls more than 170 points, Nasdaq loses nearly 2% as Nvidia leads tech sell-off: Live updates.” CNBC, 7 Jan. 2025, https://www.cnbc.com/2024/12/17/stock-market-today-live-updates.html. Accessed January 8, 2025.
^[ii] Mills, Madison and Smith, Seana. “Meta CEO Zuckerberg under fire after ending fact-checking program.” Yahoo, 8 Jan. 2025, https://finance.yahoo.com/video/meta-ceo-zuckerberg-under-fire-160328895.html. Accessed January 8, 2025.
^[iii] Harring, Alex. “Trump could declare national economic emergency to justify universal tariffs, CNN reports.” CNBC, 8 Jan. 2025, https://www.cnbc.com/2025/01/08/trump-could-declare-national-economic-emergency-to-justify-universal-tariffs-cnn-reports.html. Accessed January 8, 2025.
^[iv] “Gold climbs after weaker-than-expected private payrolls data.” CNBC, 7 Jan. 2025, https://www.cnbc.com/2025/01/08/gold-inches-lower-as-us-yields-dollar-rise-on-strong-data.html. Accessed January 8, 2025.
^[v] Mutikani, Lucia. “US weekly jobless claims at 11-month low amid labor market stability.” Yahoo, 8 Jan. 2025, https://finance.yahoo.com/news/us-weekly-jobless-claims-unexpectedly-133857050.html.Accessed January 8, 2025.
^[vi] Weisholtz, Drew. “SAG Awards nominations are here! See the full list of nominees for 2025.” NBC, 8 Jan. 2025, https://www.today.com/popculture/awards/sag-awards-nominations-2025-rcna186746. Accessed January 8, 2025.