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The U.S. stock market is losing its swagger. The S&P 500, Wall Street’s ultimate scorecard, dropped to levels last seen on November 5, the day before Donald Trump secured his second presidential term.

Investors aren’t just jittery—they’re running for the exits. Stocks are being dumped, bond yields are surging, and inflation fears have everyone sweating. Even the Federal Reserve is having the worst time.

At press time, the S&P 500 was down 0.6%, hanging at 5,793 after hitting a low of 5,773 earlier in the session. Just days before the election, the index sat at 5,782.76.

Trump’s win initially lit a fire under the market, with the S&P jumping 2.5% the day after and soaring another 5.3% by December 6. Fast-forward to now, and that rally is history—the index is down nearly 5% from its peak.

Rate worries, inflation, and the Trump effect

So, what’s killing the buzz? First, the economy isn’t looking so hot. Growth feels shaky, stock prices are sky-high, and everyone’s starting to doubt whether the Federal Reserve will deliver those sweet, sweet rate cuts this year.

Throw in Trump’s trade policies—tariffs on imports and deportations of undocumented workers—and you’ve got a recipe for anxiety. The bond market is already bracing for impact. Yields on 20-year Treasuries shot past 5%, while the 30-year yield flirted with that milestone before easing slightly.

Meanwhile, the 10-year Treasury yield, which drives everything from mortgages to corporate borrowing, is surging too, now at its highest since October 2023. Rising yields mean bonds look more appealing than stocks, adding pressure to an already teetering market.

Wall Street’s famed fear gauge, the Cboe Volatility Index (VIX), is doing what it does best—spiking. It’s sitting above 20, a level that screams, “Traders are freaking out.”

According to Michael O’Rourke, chief market strategist at JonesTrading, “This is a case of high expectations crashing into reality.” Translation? Turning campaign slogans into actual policy is a slog, and Wall Street hates uncertainty.

They’re set to be a cornerstone of Trump’s agenda, and markets aren’t thrilled. Tariffs slow growth, raise costs and throw a wrench into global trade. Investors had their honeymoon phase with Trump’s policies back in 2017. Now? Not so much.

A different market, tougher times

This isn’t the same market Trump inherited in 2017. Back then, stocks weren’t wildly overpriced. The S&P 500 had gained a modest 8.5% over the previous two years and was coming off a 9.5% rise in 2016.

Compare that to today: since the end of 2022, the index has skyrocketed over 50%, posting back-to-back annual gains of more than 20%. In 2024 alone, it set over 50 record highs. The result? A market stretched to its limits.

The post-election rally that followed Trump’s latest win is fading fast. The Dow Jones Industrial Average, which initially surged, has now erased all its gains since Election Day and sits 0.7% lower than its November 5 level. The Russell 2000, known for its focus on smaller companies often seen as Trump beneficiaries, has tumbled 10% from its late November highs.

Rising bond yields are throwing another wrench into the works. After Friday’s blockbuster jobs report, doubts about Federal Reserve rate cuts have skyrocketed. Investors were banking on the central bank lowering rates to keep stocks afloat, but now that seems like wishful thinking.

As government bond yields climb, stocks look less attractive. The Fed started easing rates from a 20-year high last fall, offering hope to the markets. However, the strong economic data is making policymakers rethink that approach.

Rate cuts are a boon for stocks, boosting growth and making bonds less tempting. Without them, Wall Street will have to lean heavily on corporate earnings to keep the market alive.

Earnings season: Make or break for stocks

Corporate earnings are about to take centre stage, and the stakes couldn’t be higher. “This fourth-quarter earnings season is probably one of the most consequential earnings seasons that we’re going to see in a long time,” said Larry Adam, chief investment officer at Raymond James.

Investors are desperate for reassurance, and the numbers will tell all. Big names are up first. JPMorgan Chase, Wells Fargo, Citigroup, and BlackRock—Wall Street giants—will release their results soon. Analysts expect companies in the S&P 500 to report a 12% profit jump from a year ago.

That’s the biggest gain since late 2021 but falls short of the 14.5% growth predicted just a few months ago. But it’s not just about the numbers. Investors want to hear how CEOs plan to deal with Trump’s populist agenda.

Tariffs could raise costs for companies importing goods and force them to pass those costs to consumers. Trade policies and mass deportations might also push inflation higher, putting even more pressure on the Fed to keep rates up.

Consumer spending, a key driver of the economy in 2024, is showing cracks. Holiday shopping data revealed a tale of two Americas: wealthy shoppers splurged on luxury goods, while lower-income households struggled with basic expenses like groceries and childcare.

The early earnings reports aren’t looking great either. Nike reported a dip in sales, FedEx cut its forecasts, and Conagra Brands—maker of pantry staples like Swiss Miss and Pam—warned about inflation and a strong dollar hitting its bottom line.

Despite the challenges, analysts still expect corporate profits to grow by 15% in 2025. But hitting that target won’t be easy.

Stocks are already expensive, trading at about 22 times their projected earnings for the next 12 months—well above the 10-year average of 18.5 times, according to FactSet. Companies will have to deliver exceptional results to justify these valuations.

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$ETH
{spot}(ETHUSDT)

{future}(ETHUSDT)
Ethereum Bullish Opportunity 🚀

Why the Bullish Sentiment?

💎 Massive Correction: ETHUSD has dropped 25% in the past month, presenting an attractive entry point for long-term investors and traders.

📊 Fibonacci Levels in Play: Price is bouncing off key Fibonacci retracement levels, signaling a recovery:

Trade Plan :
🎯 Entry: 3,050
🎯Take Profit 1 ($3,300): Close to the 0.236 Fibonacci level, acting as the first resistance.
🎯Take Profit 2 ($3,530): A target near the 0.50 Fibonacci retracement level, offering mid-range gains.
🏆Take Profit 3 ($3,740): A breakout move above the 0.618 Fibonacci level, marking a strong continuation.
🛡 Stop Loss: $2,800, placed below the Demand Zone to protect your position.

📈The ETH/BTC ratio is currently at 0.034, one of the lowest levels since April 2021.
The last time the ETH/BTC ratio hit a low of 0.032 in November last year, Ethereum’s price skyrocketed from this exact level to $4,000 in less than 3 weeks.

📈 Demand Zone Support: Price is holding above the $3,000 Demand Zone, a historically strong level for reversals and bullish momentum.

With a strong historical pattern and technical alignment, Ethereum could be poised for another explosive move! Don't miss out on this setup! 🚀

👉 Ready to take action? Let’s ride this wave together and see where it takes us! Drop your thoughts or questions in the comments below!

Three notable altcoins, which are unique in their way and have the potential to yield numerous profits by the year 2025, are Rexas Finance (RXS), Cardano (ADA), and Dogecoin (DOGE). According to some experts, the upcoming bull market will allow vast development for these three coins as they can turn $500 to $10000.

Rexas Finance (RXS): A Presale Behemoth Which Is Building Its Community

Investors have already started taking Rexas Finance seriously; its presale results hint at that. The current presale has sold 395 million tokens across all stages and raised more than $35.9 million. Having reached $0.175 in stage 11, RXS has been increasing progressively from the $0.03 pricing in stage one. By using modern-day technology to incorporate real-world assets into the crypto world, Rexas Finance attracts traditional and crypto fans. This has greatly affected its presale success, which enhances its growth for the long term. The CertiK audit and the listing on CoinMarketCap and CoinGecko give the project the visibility and credibility. This warrants transparency and trust, which are paramount for institutional and retail investors. Furthermore, RXS is designed to maintain momentum even after the launch, with 42.5% allocated in the presale and 22.5% in staking rewards.

Rexas Finance, however, is not limited to a successful presale token. The community’s continuous growth, accompanied by strong fundamentals and advanced technology, makes it one of the best candidates to turn small investments into large fortunes by 2025.

Cardano (ADA): ADA Crosses $1 as 2025 Updates Loom

After another market slump, Cardano is slowly grabbing the public's attention again, as its price surged to $1.09. This price range is safe for the currency, given its market cap of $38.5 billion and Charles Hoskinson’s comments on 2025 updates. Such prospects have sparked hope for investors and analysts once more. Referring to the fractals from 2021, analysts project that Cardano will touch $6 by 2025. Such an inclination is doable and fueled by the platform’s ecosystem's growth momentum. Cardano made notable achievements in 2024, including the growth of smart contracts to above 100,000 and the total value locked (TVL) crossing $545 million.

Cardano has shelled out more than 21.8 billion ADA to aid its robust staking mechanism, making network security easily achievable while bringing the circulation supply down. Coupled with the emphasis on scalability and sustainability, the combination makes ADA a credible player in the long-term forecast. There should be no questions for investors looking for a project to invest $500 and expect $10000 because Cardano here is still magical.

Dogecoin (DOGE): Signals of Whale Activity Point Towards Significant Moves

Despite being ridiculed, Dogecoin has developed from a meme coin to a strong contender in the market. Currently positioned at a price of $0.379 and a market cap of $55.9 billion, DOGE has stayed a fan favourite among retail and institutional investors alike. DOGE has grown following several announcements of whale actions. In a single day, more than a billion Dogecoin were acquired by whales in the market, showing a strong sense of faith in the coin's future worth. On the Supertrend indicator on a 3-month chart, the green colour has also appeared, indicating a bullish Dogecoin future.

According to analysts, the community spirit attributed to Dogecoin, together with whale activity, is set to see a very high surge in price in the year 2025, by around 77%. Such an opportunity, befitting the risk profile of those looking for high-risk, high-reward opportunities, indicates a sentiment that dovetails with the market and can now bring the people behind the leash.

Conclusion

In 2025, Rexas Finance, Cardano, and Dogecoin will be three separate but equally fascinating investment possibilities for investors. The success of the RXS presale and the model of asset tokenization put it in good form for early investors. It is easy to see that the increased adoption of Cardano’s ecosystem development and most strategies and vision have developed robust trust for investors looking for returns in the distant future. On the other hand, the growing number of Dogecoin whales and its massive betting technical indicators seem primed for a price spike. To an investor aspiring to invest $500 to make $10,000, this new cryptocurrency captures the desired position in the market, scope, and avenue for growth. The patents are impressive and ready for adoption, and combined with a ripe crypto market, the next bull wave will bring exceptional returns on the three coins.

For more information about Rexas Finance (RXS) visit the links below:

Website: https://rexas.com

Win $1 Million Giveaway: https://bit.ly/Rexas1M

Whitepaper: https://rexas.com/rexas-whitepaper.pdf

Twitter/X: https://x.com/rexasfinance

Telegram: https://t.me/rexasfinance

Disclaimer: This is a sponsored article and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice

 

Our December research highlights unprecedented growth in crypto markets.

From BTC's $108k milestone to a $3.91T market cap, here's what you need to know ⤵️
https://www.binance.com/en/blog/research/binance-research-key-trends-in-crypto--january-2025-7113592559394488172?hl=en