January 24, 2025: Markets Near Record Highs Despite Tech Wobble—Rotation Opportunities Emerge
Hook
The S&P 500's push above 6,000 and NASDAQ's approach to all-time highs masks a telling divergence: while Netflix soared 15% on subscriber growth, semiconductor stocks tumbled after Texas Instruments' weak guidance. This sector rotation creates specific opportunities for both momentum and value players.
Core Analysis
Key Developments:
- S&P 500 hit record 6,078.40, up 3.7% MTD vs. 2.5% consensus forecast
- 79% of S&P companies beating earnings (4% above 10-year average)
- TSX underperforming at +2.09% YTD amid U.S. tariff concerns
Sector Breakdown:
- Tech Leadership Split:
- Software/AI surging (Twilio +20%, Oracle +10%)
- Semiconductors declining (TI -7.5%, Nvidia -3.1%)
- Canadian Resources pressured (Canadian Natural Resources -4%)
- Healthcare momentum building (Novo Nordisk +8.3%)
Strategic Playbook
Short-Term (Traders):
- Consider pairs trades: Long software/AI vs. short semiconductors
- Watch TSX energy names for oversold bounce if tariff tensions ease
Long-Term (Investors):
- Maintain core tech exposure but rotate within sector toward AI infrastructure
- Build positions in Canadian blue-chips trading at tariff-driven discounts
Forward Outlook
Catalysts:
- Fed meeting (Tuesday) - potential policy shift
- Big Tech earnings: Microsoft, Meta, Tesla, Apple
- Q4 GDP and PCE data releases
Risk Radar:
- U.S.-Canada trade tensions (25% tariff threat)
- Semiconductor demand concerns spreading beyond Texas Instruments
Sources:
- Markets Insider - "Stock Market Reaches Near-Record High Amid Strong Earnings" - Jennifer Sor, January 22, 2025
- E*TRADE Market Dashboard - "Economic Indicators and Market Performance" - January 21, 2025
- Trading Economics - "Canada Stock Market Index (TSX) Market Overview" - January 2025
- Investopedia Markets News - "Technology Sector Analysis and Market Movement" - January 24, 2025
All data as of January 24, 2025. Past performance does not guarantee future results.
