Justin Sullivan/Getty Images
-
The S&P 500 jumped 1% on Friday, January 17, 2025, entering a three-day weekend on a high note as prospects for additional interest rate cuts in 2025 picked up.
-
Intel shares took off following reports that the semiconductor giant could be an acquisition target.
-
Freight carrier JB Hunt posted lower-than-expected sales and profits for the fourth quarter and its shares fell.
Major U.S. stock indexes rose at the end of the week, with traders scheduled for a day off in commemoration of Martin Luther King Jr. Day on a Monday that will also see Donald Trump sworn in for his second presidential term.
Stocks’ strength to close the week coincided with rejuvenated optimism that the Federal Reserve could continue lowering interest rates in 2025, buoyed by signs of waning inflation. (Here are four reasons why inflation still persists.)
The S&P 500 advanced 1% on Friday. Strength in the technology sector helped lift the Nasdaq 1.5%, while the Dow closed the day up 0.8%.
Intel (INTC) shares rose 9.3%, outperforming the S&P 500, amid reports that the semiconductor giant could be a takeover target. Friday’s boost extended gains posted by Intel shares earlier in the week after the chipmaker said it would transition its venture fund into an independent entity, and that the company would remain an investor. Intel’s acting CEO said the move would help the company increase efficiency and maximize the value of its assets.
SLB (SLB), the world’s largest oilfield services company, posted better-than-expected fourth-quarter profits, increased its dividend and stepped up its share buybacks. Although SLB struck a cautious tone for 2025, indicating that year-on-year revenue growth would be limited as high oil supply levels constrain oil activities, its shares rose 6.1% on the back of the strong earnings report.
Truist Financial Stock (TFC) gained 5.9% after the bank holding company beat quarterly sales and profit estimates. Net interest and noninterest income increased from their prior-year levels, helping to drive the strong results. An increase in average deposit balances also contributed to Truist’s performance, which came despite a drop in average loan balances.
JB Hunt Transport Services Shares (JBHT) suffered the steepest decline of all S&P 500 stocks on Friday, falling 7.4% after the shipping company’s fourth-quarter sales and earnings fell short of expectations. Falling volumes affected performance and the company reported declines in revenue across all its segments. JB Hunt’s CEO said the company remains focused on repairing its margins as it navigates transportation industry headwinds.