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The S&P 500 added 1.3% on Friday, Jan. 3, ending a streak of five straight down days as stocks looked to regain their momentum to start the new trading year.
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Super Micro Computer shares surged, bouncing back from five straight down days as the server maker aims to move past last year's accounting-related issues.
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Tesla stock also recovered from a string of recent losses as the carmaker said it achieved a sales record in China for 2024.
Major U.S. equities indexes pushed higher on the final day of the holiday-shortened week, bouncing back from a sluggish opening to 2025.
The S&P 500 jumped 1.3%, snapping a five-session losing streak that began when the markets returned from Christmas break. After a stagnant stretch heading into the end of the year, a resurgence in the tech sector helped lift the Nasdaq 1.8%, while the Dow industrials gained 0.8% on Friday.
Following five straight days of declines in line with the drops in the benchmark index, Super Micro Computer (SMCI) shares roared back on Friday, bouncing 10.9% to lead the S&P 500 higher. The server maker's stock logged a highly volatile performance in 2024 as accounting-related issues led to the delay of its annual report. Supermicro's CEO assured investors that the postponed filing will be complete by the updated Feb. 25 deadline issued by the Nasdaq, downplaying the threat that the exchange could delist the stock.
Nuclear energy stocks continued to heat up as the new year of trading gets underway, with elevated demand from artificial intelligence (AI) data centers helping brighten the outlook for power generators. Shares of Vistra (VST) surged 8.5%, while shares of fellow Texas-based utility NRG Energy (NRG) added 6.2%.
Tesla (TSLA) stock soared 8.2%, recovering from heavy losses posted in the prior session. The electric vehicle (EV) manufacturer reported fewer-than-expected vehicle deliveries for the fourth quarter, with full-year delivery totals for 2024 falling short of the 2023 levels. However, the carmaker said Friday that sales in China hit a record high last year, a sign of strength in the world's largest car market, where Tesla faces stiff competition from domestic EV producers.
Dollar Tree (DLTR) shares dropped 4.1% on Friday, losing the most of any S&P 500 stock. The discounter launched same-day delivery at its stores as it aims to compete more effectively with online retailers, but the move has the potential to hinder Dollar Tree's profit margins, which are already minimal. Analysts have also expressed concerns about Dollar Tree's transition to a multi-price point format, noting that the transformation has not yielded the expected benefits for same-store sales growth and highlighting management's reduced forecasts for stores that will be converted to the new format.