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.