Live Stock Market News: Dow, S&P 500, Nasdaq Futures Gain Slightly Despite Weekly Losses

US stocks saw a rise on Friday, trying to recover from a tough start to 2025. Tesla (TSLA) shares showed improvement, and the S&P 500 was set to end its five-day losing streak.

The S&P 500 went up by 1%, the Dow Jones rose 0.6%, and the Nasdaq gained 1.3%.

Friday marked the last opportunity for the S&P 500 to achieve the "Santa Claus" rally, a pattern that signals strong returns for the upcoming year. However, despite Friday’s gains, all three major indexes were still on track to finish the week in the red.

Carvana (CVNA) saw its stock decline again on Friday, continuing its losses from the previous day after a short-seller report cast doubt on the company’s recovery efforts.

By late morning, Carvana’s stock had dropped more than 6%, adding to Thursday’s nearly 2% loss.

The short-seller, Hindenburg Research, published a report titled "A Father-Son Accounting Grift for the Ages," alleging accounting fraud and questionable stock sales involving former CEO Ernie Garcia II, and his son, Ernest Garcia III, who is now Carvana's CEO. The report has raised concerns about the company's financial practices.

In response, Carvana called the report’s claims “intentionally misleading and inaccurate,” stating that similar allegations have been made by other short sellers looking to profit from the stock's decline.

The Tempe, Arizona-based online car marketplace has undergone significant debt restructuring and cost-cutting measures since 2022, when its stock plummeted, sparking fears of potential bankruptcy. Despite these challenges, Carvana’s stock rebounded, gaining almost 300% in 2024, though it continues to face heavy short interest.

US Steel (X) saw its stock fall by over 6% on Friday after President Biden decided to block a $14.9 billion merger with Japan's Nippon Steel. This decision raises questions about the future of the well-known steel company based in Pittsburgh.

The merger has sparked a lot of debate since it was first proposed in 2023. Unions, politicians, and even competitors like Cleveland-Cliffs (CLF), which had also shown interest in buying US Steel, have all had strong opinions about it.

Steel analyst Josh Spoores from CRU Group said the decision was heavily influenced by politics and added that Cleveland-Cliffs might no longer be the best candidate to buy US Steel. "Cleveland-Cliffs could still be interested, but US Steel is in a stronger position now and may prefer to operate on its own," Spoores explained.

Spoores mentioned that US Steel might have to cut back on production as steel prices are falling. While Nippon Steel had promised to invest in the company without cutting its capacity, the current market challenges could force US Steel to scale back some of its operations.

Optimism for a "Santa Claus" rally to start the year is fading fast. Friday marks the final opportunity for the S&P 500 to achieve gains in the seasonal pattern that typically spans the last five trading days of December and the first two of January. Historically, this trend has been a signal of strong returns for the month and year ahead.

Since 1950, the S&P 500 has seen an average return of 1.3% during this rally period, with positive outcomes occurring 79% of the time, according to Adam Turnquist, Chief Technical Strategist at LPL Financial.

However, this year, the index is on track for a 2% weekly loss. Turnquist warns that near-term risks remain elevated due to declining market momentum, stretched bullish sentiment, and macroeconomic pressures from higher interest rates and a stronger dollar.

U.S. stocks gained ground on Friday, attempting to recover from a rough start to 2025 as investors await manufacturing data. Tesla (TSLA) continues to struggle, adding pressure on the market.

The S&P 500 climbed 0.5%, while the Dow Jones Industrial Average also rose by around 0.5%. The Nasdaq, which includes many tech companies, saw a 0.6% increase.

Today is the last chance for the S&P 500 to achieve a "Santa Claus" rally, a seasonal trend that often leads to strong returns in January and for the year. However, losses for the week are still expected.

Good morning! Here’s what’s on the agenda for today:

1. Earnings: There are no significant earnings announcements scheduled.
2. Economic News: The focus today is on the ISM Manufacturing Index and the ISM Prices Paid data for December, which will offer valuable insights into the manufacturing sector's performance and inflationary pressures.