Wall Street Rallies Amid Strong Earnings and Economic Data

Wall Street experienced a notable uptick, marking the commencement of President Donald Trump's second term with positive momentum. The S&P 500 rose by 0.7%, the Dow Jones Industrial Average increased by 446 points, and the Nasdaq composite advanced by 0.5%. This surge was largely attributed to several companies reporting better-than-expected profits for the end of 2024.

Among the standout performers, Charles Schwab reported robust earnings, leading to a 3.4% rise in its stock value. Similarly, 3M experienced gains following its earnings report. Conversely, Walgreens Boots Alliance faced a significant setback, with its shares plummeting 12.6% after the U.S. Justice Department accused the company of improperly filling millions of prescriptions.

In the bond market, Treasury yields experienced a slight decline, with the 10-year yield falling to 4.57%. This movement suggests that investors are adjusting their expectations regarding future economic growth and inflation. On the international front, global markets exhibited mixed reactions to President Trump's inauguration, with Asian and European markets displaying varied performances.

Cryptocurrency markets also witnessed notable activity. Bitcoin surged to a record above $109,000 amid optimism that President Trump would favor the industry, though it later retracted to just under $106,000. This volatility underscores the speculative nature of digital assets and their sensitivity to political developments.

In the automotive sector, General Motors (GM) saw its stock rise by 5.4% following an upgrade by Deutsche Bank and supportive comments from President Trump regarding the U.S. auto industry. In contrast, Tesla's shares declined by 2.4%, influenced by the administration's stance on revoking certain Environmental Protection Agency (EPA) regulations.

Apple faced a 4.1% drop in its stock value due to a downgrade by Jefferies, which cited concerns over weak iPhone sales. This development highlights the challenges tech companies may face in maintaining growth amid market saturation and evolving consumer preferences.

In the pharmaceutical sector, Moderna's stock increased by 5.1% after receiving $590 million from the Department of Health and Human Services for bird flu vaccine development. This investment underscores the ongoing efforts to bolster public health infrastructure and preparedness.

Looking ahead, investors are keenly awaiting upcoming earnings reports from major companies, including Netflix and American Express. These reports will provide further insights into corporate performance and consumer behavior, offering valuable indicators for the market's trajectory in the coming months.