Nasdaq jumps to lead Dow, S&P 500 as techs revive rate cut hopes

Bitcoin bulls regained control on Friday as the price of the dominant cryptocurrency soared above $100,000 as investors anticipated further measures by President-elect Donald Trump to support the industry.

Trump is expected to issue an executive order, prioritizing crypto policy during his first days in office, according to reports, as well as appoint business-friendly officials to oversee the continued rollout of digital currency into the broader economy. .

In addition to the increase in value of cryptocurrencies, several corporate actors linked to the ecosystem are recovering from the news. Coinbase (COIN), the country’s largest crypto trading platform, rose 5% on Friday. MicroStrategy (MSTR), which remains heavily invested in bitcoin, gained 7%.

Trump has also expressed interest in creating a U.S. cryptocurrency reserve, appointing a cryptocurrency czar, and implementing other regulations to boost adoption. The pro-growth approach contrasts with what was widely seen as an antagonistic relationship between the Biden administration and the crypto industry.

The final trading day of the Biden era is on track to post strong gains on Friday, as optimism about President-elect Trump’s inauguration and the policy changes that will follow coincide with impressive corporate earnings and a more optimistic outlook for the interest rates.

The Dow Jones Industrial Average (^DJI) gained 1.1% while the S&P 500 (^GSPC) rose 1.2%, after a day of losses for the main indicators. The tech-heavy Nasdaq Composite (^IXIC) gained more than 1.7% as shares of Nvidia (NVDA) and Tesla (TSLA) returned to the green.

Stocks are on track for big weekly gains after a major rally on Wednesday. And the 10-year Treasury yield (^TNX) retreated to trade around 4.6% on Friday.

These are some of the stocks leading Yahoo Finance’s trends page during morning trading on Friday.

goal (GOAL): Shares of the social media platform rose more than half a percent on Friday morning following a U.S. Supreme Court decision that upheld a law that could ban its rival, the streaming video app, from the United States. short TikTok. The TikTok ban would take effect this Sunday, January 19, unless Chinese-owned parent company ByteDance divests from the platform.

Novo Nordisk (NVO): The pharmaceutical company came under pressure after some of its drugs were included in a list of Medicare price negotiations in 2027. Novo Nordisk’s (NVO) GLP-1 weight loss drugs, Ozempic and Wegovy, were among the names. Shares fell more than 4%.

Intel (INTC): Shares of the embattled tech giant rose 8% on Friday afternoon as speculation circulated online that the company had become an acquisition target, according to a report from SemiAccurate Friday. Intel shares have lost more than half their value over the past year.

Coin base (COIN): The country’s largest crypto platform is being boosted once again by rising bitcoin prices. The price of bitcoin (BTC-USD) climbed back above $100,000 on Friday following reports that President-elect Donald Trump plans to issue an executive order elevating cryptocurrencies as a political priority.

The Centers for Medicare & Medicaid Services (CMS) released its second round of drug negotiation targets, a list of 15 drugs under Medicare Part D, including Novo Nordisk’s (NVO) blockbuster GLP-1, Anjalee Khemlani reports. from Yahoo Finance.

Novo was trading down 4% following Friday’s news.

Diabetes drug Ozempic and weight-loss drug Wegovy top the list, along with others such as Merck’s (MRK) diabetes drug Janumet.

Read more about the next round of drug price negotiations here.

It is unclear whether the incoming Trump administration will respect this list and the process or change them after taking office on January 20.

Novo Nordisk currently has 55% of the GLP-1 market and has raised $50 billion from the two drugs last year in the first three quarters alone.

The U.S. Supreme Court upheld a law banning TikTok in the United States starting Sunday unless it is sold to an owner not controlled by a foreign adversary, Yahoo Finance’s Alexis Keenan and Daniel Howley report.

Friday’s ruling creates new uncertainty for the Chinese app used by 170 million Americans, but could be a long-term boon for social media rivals for advertising money like Meta (META).

The court agreed with the US government’s argument that ties between ByteDance, TikTok’s parent company, and Beijing presented a national security threat that allowed Congress to demand its sale.

TikTok had argued that it was entitled to First Amendment protections and that its proprietary algorithm was in fact editorial expression that qualified as speech.

The court’s decision likely leaves TikTok’s fate in the hands of Donald Trump, who vowed to “save TikTok” and had asked the court to suspend the divestment deadline. The president-elect will take office on January 20, one day after the ban takes effect.

Read more here.

A revival in technology stocks fueled a jump on Wall Street on Friday as investors enjoyed a week of favorable inflation readings and impressive corporate earnings, sending market sentiment back to optimism as the Federal Reserve considers its rate-setting policy. rates.

The Dow Jones Industrial Average (^DJI) gained 0.7%, while the S&P 500 (^GSPC) rose 1%, after a day of losses for the main indicators. The tech-heavy Nasdaq Composite (^IXIC) rose more than 1.6% as shares of Nvidia (NVDA) and Tesla (TSLA) returned to the green.

Markets have turned optimistic as investors take stock of big bank profits and inflation readings in recent days, which have revived bets on interest rate cuts. Stocks are on track for big weekly gains after a major rally on Wednesday, while the 10-year Treasury yield (^TNX) retreated to 4.6% on Friday.

Home construction starts rose in December, driven by a rebound in multifamily construction.

Census Bureau data showed housing rose 15.8% in December to an annual rate of 1.49 million, higher than economists’ expectations for an annual rate of 1.32 million.

The beginnings of single-family homes made modest progress. Construction rose 3.3% to an annualized rate of 1.05 million, the strongest pace since February 2024. Meanwhile, multifamily housing construction grew nearly 62%.

“Housing construction spiked at the end of the year, but this doesn’t mean the country is out of the woods when it comes to problems in the residential housing sector,” wrote Christopher Rupkey, chief economist at FWDBONDS, after the publication.

“There are still not enough homes in the country and residential housing construction remains historically depressed,” the economist added.

Up to this point, new construction in 2024 was the slowest since 2019, according to Bloomberg. Despite the increase in construction, builders face high mortgage rates. Freddie Mac said mortgage rates rose to 7.04% this week, hitting the highest level since May 2024. Mortgage loan rates tend to follow U.S. Treasury yields, which had been rising following the solid employment data.