Wall Street's Roller Coaster: Bounce Back Amidst New Year Pivots

Wall Street rebounded as the week ended, driven by growth companies like Tesla and Nvidia. Despite initial losses, optimism grew with the Federal Reserve's rate cuts and robust economic data. Investors anticipate moves from the incoming Trump administration, which could influence inflation and corporate profits.

Wall Street saw a significant rebound on Friday, marking a positive end to a holiday-shortened week that started the new year with hopes of additional rate cuts from the Federal Reserve and pro-business policies from the incoming Trump administration.

Key growth drivers like Tesla and Nvidia propelled all three major U.S. stock indexes higher, with the Nasdaq leading the gains. Although indices faced modest weekly declines, strong economic data questioned further immediate rate cuts amid potential inflation concerns.

The Dow rose by 324 points, the S&P 500 by 72 points, and the Nasdaq by 331 points. All 11 sectors of the S&P 500 improved, particularly consumer discretionary stocks following a prior downturn.

(With inputs from agencies.)