January's Must-see Financial Events: CES 2025, Q4 Earnings Season, and Trump's Inauguration Day
After a year marked by new records in the stock market, investors are keen to see if the momentum will carry over into January 2025. For many years, the "January Effect"—a phenomenon where U.S. stocks generally perform better in January than in other months—has captivated market participants. Several factors are traditionally cited for this trend:
Tax-Loss Harvesting: Investors often sell off underperforming stocks at the end of the year to claim capital losses, which can offset gains and reduce tax liabilities. This results in lower stock prices in December, followed by a potential surge in January as buying resumes. This pattern is especially noticeable in the more volatile small-cap sector, where the impact of tax-related selling can be more pronounced.
Year-End Bonuses: The injection of year-end bonuses into the market typically enhances investment activity in January, pushing up both demand and stock prices.
Looking ahead to January 2025, several key events are poised to capture the attention of the market:
-CES 2025: Scheduled to start officially on January 7, 2025, the Consumer Electronics Show (CES) is a premier tech event that showcases both current products and futuristic concepts from large and small tech firms. The festivities actually begin a day earlier, on January 6, with a keynote by $NVIDIA Corp(NVDA)$
-FOMC Minutes: The Fed will release the minutes of the December monetary policy meeting on January 8.
-Q4 Earnings Season: The Q4 earnings season kicks off on January 15, with leading investment banks including $JPMorgan Chase(JPM)$
-Trump's Inauguration Day: Donald Trump is set to be inaugurated as president of the United States on January 20, marking the beginning of his second term and completing what many consider one of the most remarkable political comebacks in U.S. history.
Traditionally, Inauguration Day is filled with ceremonial splendor as one president exits and another enters the White House. Nonetheless, Trump has committed to signing a series of executive orders on his first day, addressing issues from border security to oil and gas exploration. The swearing-in ceremony, expected to be conducted by U.S. Supreme Court Chief Justice John Roberts, is scheduled to take place at 12 p.m. ET at the U.S. Capitol.
Following the oath, Trump will present his inaugural speech, which he has suggested will aim to inspire and unify the nation.
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