What to know before the US stock market opens for the first time in 2025

The first trading day of 2025 is here, and investors are expecting a chaotic start. After a volatile close to 2024, global markets are sending mixed signals.

From Wall Street’s recent losses to Asia’s shaky performance and Europe’s energy turmoil, there’s a lot on the radar before the US stock market kicks off.

The S&P 500 and Nasdaq 100 both dropped for four straight sessions, wiping out over a trillion dollars in large-cap value. Despite this late-year hit, the broader markets still closed 2024 higher overall. Now here’s everything you need to know to keep up.

Asia starts 2025 confused

Asian markets are painting a complicated picture as they reopen. China’s CSI 300 fell over 3% early in the session before trimming losses slightly to end 2.91% lower. It closed at 3,820.39. Manufacturing data didn’t help, cause the December Caixin/S&P Global PMI came in at 50.5, far below the expected 51.7. This is a slowdown from November’s 51.5 reading.

President Xi Jinping promised more “proactive policies” to spur growth during his New Year’s address, but the market didn’t bite. Over in Hong Kong, the Hang Seng Index shed 2.37%. Shares of Sun Art Retail Group plummeted 23% after Alibaba announced plans to sell its majority stake in the company. Alibaba itself dropped more than 1%, adding to the regional slump.

South Korea’s Kospi dipped slightly to close at 2,398.94, while the Kosdaq rose 1.24% to 686.63. The delayed opening, thanks to a New Year’s ceremony, didn’t stop the Bank of Korea’s governor from striking a cautious tone. He cited “unprecedented political and economic uncertainties” and hinted at flexible monetary policy in the coming months.

Japan’s markets remained closed and won’t reopen until January 6. New Zealand was also on holiday, while Hong Kong showed some promise with futures pointing toward modest gains later in the week.

Bitcoin mania heats up

Crypto fans are still riding high after Bitcoin smashed past $108,000 in December. Donald Trump’s presidential victory, which is favorable for cryptos, lit the fuse on the crypto market’s explosive rally. The big question now: will it hit $200,000 in 2025 as the community expects?

Optimism aside, there’s been some cooling off in institutional interest. Bitcoin ETFs in the U.S. reported net outflows of $1.8 billion since December 19. Meanwhile, CME Group’s Bitcoin futures contracts dropped nearly 20% from their December peaks. Retail investors are left to carry the market.

Gold didn’t miss out on the action either. It wrapped up 2024 with a 27% annual gain, its biggest since 2010. It is trading near $2,625 per ounce right now, boosted by the Federal Reserve’s rate cuts, central bank buying sprees, and haven demand. Traders are now watching how the Fed’s slower easing pace might affect bullion in the months ahead.

European markets stumble out of the gate

Over in Europe, markets opened 2025 with hesitation. The Stoxx 600 index flipped from early gains to a 0.07% dip in mid-morning trading. Oil and gas stocks gained 0.97%, utilities rose 0.5%, but autos and banks dragged the index down, falling 1.1% and 0.86% respectively.

France’s CAC 40 dropped 0.49%, while Germany’s DAX eked out a 0.17% gain. The UK’s FTSE 100 remained flat. UK house prices bucked the broader trend, rising 0.7% in December. This was a 4.7% increase for the year, bringing prices close to the 2022 highs, defying expectations of a slowdown.

Germany’s HCOB PMI slipped to 42.5 in December from 43.0 in November, signaling worsening conditions. France was hit harder, with its PMI dropping to 41.9, the sharpest contraction since May 2020. Italy also slowed, and Spain showed mild growth.

Meanwhile, Russia cutting off gas supplies to Europe through Ukraine has thrown energy markets into turmoil. The transit route had operated for five decades before both sides confirmed the halt on Wednesday. This leaves traders scrambling to assess how energy supply chains will adjust in 2025.

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