The opening of the trading year 2025 has seen a surge in speculative activity in the stock market. This was evident on the very first trading day, following the S&P 500’s best two-year performance since 1998.
Bitcoin-related stocks saw an uptick as the cryptocurrency clawed its way back above $96,000. Microstrategy, for instance, added 3.6% after a whopping 360% surge in 2024. Other crypto-linked companies like Coinbase, Robinhood, Mara Holdings, and Riot Platforms also saw an upward trend after a successful 2024. An unconventional crypto token, ‘fartcoin’ saw a 45% jump, creating a market value of $1.38 billion.
In a separate development, retail traders were kept on their toes by online sensation, Roaring Kitty, also known as Keith Gill. He posted a cryptic gif on X that features a “Chappelle’s Show” sketch with comedian Dave Chappelle impersonating the late funk musician Rick James. Some traders speculated that Gill was hinting at Unity Software, which saw its stock rise by 9.1%. Others believed he was once again endorsing GameStop, whose shares also saw a boost.
The semiconductor stocks, which were the star performers of 2024, continued to lead the market after the artificial intelligence trade lost some momentum towards the end of last year. For instance, Nvidia saw a 3% gain on Thursday.
Additionally, golf stock Topgolf Callaway Brands experienced a 14.5% surge as a result of an upgrade by Jefferies from hold to buy. The investment bank believed the golf equipment maker’s shares were oversold and thus raised its price target to 65% above its year-end closing.
The broad stock indexes started 2025 on a high note, with the Dow Industrial Average advancing by as much as 300 points, although it lost some steam to close the day lower. This market behavior resembles the initial rallies following Donald Trump’s election victory in November, as investors were optimistic about his pro-business policies propelling companies and the economy towards robust growth.
However, this momentum slowed down towards the end of 2024 due to concerns about the possible inflationary effects of the president-elect’s protectionist policies and potential disruption to supply chains. Additionally, the Federal Reserve signaled fewer interest rate cuts in 2025.
Lisa Shalett, the Chief Investment Officer at Morgan Stanley Wealth Management, raised a pertinent question in a recent note to clients. She asked whether the incoming administration’s deregulation push would indeed stimulate ‘animal spirits’ or would it merely accelerate monopoly power, thereby diluting the effectiveness of broad economic measures and leaving behind even larger sections of the population.
Subsequently, an error in the initial reporting regarding Roaring Kitty’s post has been corrected. The post was a gif on X featuring a “Chappelle’s Show” sketch with Dave Chappelle playing the late funk musician Rick James.
