The S&P 500 and Nasdaq have both felt pressure as shares of major tech companies came under pressure Monday. Investors continue to keep a close eye on rising Treasury yields, which heighten worries about valuations, particularly for some of the market's most highly valued names.

The S&P 500 jumped 1% on Friday, Jan. 17, 2025, heading into the long weekend on a high note as prospects rebounded for additional interest-rate cuts in 2025.

The S&P 500 surged 23% in 2024, representing one of the best years in modern history. Investors are hungry for more in 2025. The post Red hot S&P 500: a chance to get rich in 2025? appeared first on The Motley Fool UK.

Bets against communication services stocks fell in December compared to the end of November, with Charter Communications (CHTR) being the most shorted stock in the sector and Google-parent Alphabet (GOOG) taking the spot for the least shorted.

Artificial intelligence (AI) was a market-driving theme last year, with AI stocks helping the S&P 500, the Nasdaq, and the Dow Jones Industrial Average each soar in the double digits. Companies selling AI tools and services saw earnings climb -- and investors piled into these players.

Big Tech stocks were weighing on the S&P 500 index on Monday, with the megacap chip maker Nvidia Corp. posting the sharpest losses. The Roundhill Magnificent Seven ETF — which holds seven Big Tech stocks including Nvidia Corp.

The stock market is facing three challenges that could make a sharp decline more likely in 2025, according to Goldman Sachs.

The current top five companies in the S 500 account for a greater chunk of the index than at any time over the last 60 years.

If the Magnificent Seven continues to produce outsize returns, the Mega Cap Growth ETF will probably beat the S&P 500 again in 2025. But the more stock prices outpace earnings growth, the more extended valuations become, which can pressure companies to deliver incredible results.

Here's what to expect from the stock market, along with some of Wall Street's hottest trends and most influential businesses, in the new year.

Uber has been laying the foundation for long-term growth in the business, and it showed in 2024. Revenue growth accelerated, rising 20% year over year in the third quarter. Moreover, the increase in revenue is driving a bigger improvement in profits, with operating income more than doubling over the year-ago quarter to $1.1 billion.

"People are going to lose a lot of money in the stock market over the next 2-3 years," warns Bill Smead.