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US stocks rally to shake off new year jitters amid light trading

Published

2 days ago

January 3, 2025

US stocks rally to shake off new year jitters amid light trading

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Stocks on Wall Street rallied on Friday to close out the first week of 2025 on an upbeat note amid fresh signs of manufacturing stability, bringing a halt to several days of losses.

The S&P 500 closed the day 1.3 per cent higher, posting its biggest rise since November 6 — the day after Donald Trump’s US election victory. The benchmark index’s gains on Friday also brought an end to five consecutive days of losses — the longest such streak since April.

The technology-heavy Nasdaq Composite added 1.8 per cent, helped by a rise of more than 8 per cent for electric-vehicle maker Tesla, whose shares had slipped a day earlier after announcing its first decline in annual vehicle deliveries in more than a decade. Semiconductor giant Nvidia advanced more than 4 per cent.

The gains came at the end of a week shortened by New Year’s Day, which can bring thinner trading volumes. Analysts noted some investors were simply preparing for the “real” start to 2025 on Monday.

But the day’s share price moves also came as a fresh reading on US manufacturing activity topped consensus forecasts, bolstering investor sentiment, and as Trump ally Mike Johnson was re-elected as Speaker of the US House of Representatives.

“It’s really a combination — I’ll call it a potpourri of different factors,” said Kristina Hooper, chief global markets strategist at Invesco. “First of all, we have seen some selling — and so at a certain point, I think investors recognise that there are buying opportunities created when you have multiple days of sell-offs.”

At the same time, Hooper added: “We got some good news today in terms of manufacturing [figures] and I think that certainly set a positive tone. We had a relatively smooth election in the House that also helped contribute to more positive sentiment.”

The ISM manufacturing purchasing managers’ index reading on Friday landed at 49.3 for December — below the threshold of 50 that marks expansion, but above economists’ forecasts and higher than a reading of 48.4 for November.

“The S&P 500 saw a broad rally as [investors] took comfort from the orderly re-election of the US House Speaker, as that helps reduce political uncertainty,” said Dec Mullarkey, managing director at SLC Management.

Referring to the group of Big Tech names that have come to dominate the US stock market, he added “the Magnificent Seven, in particular, remain resilient even as valuations run high. Investors are still confident that the large outlays for [artificial intelligence] investment will pay dividends and secure a first-mover advantage.”

Even after Friday’s sharp rise, the S&P and Nasdaq still posted small weekly losses.

Invesco’s Hooper believed that “the overall environment is supportive of risk assets”, meaning “we’re likely to have more positive days than negative days” as the new year progresses. However, “there could very well be more volatility”, she said.

“Let’s face it: there’s more uncertainty, and as we get closer and closer to January 20 [the day of Trump’s inauguration] I think there will be more question marks around what’s likely to come from the new administration.”

Additional reporting by Will Schmitt

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New Orleans Attacker Visited City Twice and Made Trips to Egypt and Canada

Published

5 hours ago

January 5, 2025

Press Room

New Orleans Attacker Visited City Twice and Made Trips to Egypt and Canada

Months before the man behind the New Orleans terror attack plowed a truck into a New Year’s Day crowd, he rode through the area on a bicycle, recording videos of his target using eyeglasses with a built-in camera, investigators said on Sunday. He was back again a few weeks later, they said, probably to continue his plotting.

Those details emerged as investigators revealed more about the driver and the extensive planning behind the attack, which killed 14 people, injured many others and left New Orleans starting 2025 grappling with a cascade of anguish and alarm.

Investigators have been pushing to piece together a clear timeline of the attacker’s actions. The investigation has entailed establishing a beat-by-beat accounting of his movements in the hours immediately before the attack, which included loading guns in his rented pickup truck and planting explosive devices in coolers near the site of the attack, Bourbon Street in the city’s French Quarter.

A far more sprawling search is looking back years to try to understand how a 42-year-old Army veteran with a lucrative job at an international accounting firm came to be radicalized, claiming alignment with the Islamic State terrorist group, better known as ISIS.

Investigators found that the attacker, Shamsud-Din Jabbar, had made trips to Egypt and Canada in 2023. But they said on Sunday that they had yet to determine what role, if any, those travels might have played in his evolving beliefs or his planning for the New Orleans attack.

“Our agents are getting answers as to where he went, who he met with and how those trips may or may not tie into his actions here in our city,” Lyonel Myrthil, the special agent in charge for the F.B.I. in New Orleans, said at a news conference.

New Orleans has been immersed in grief since the attack, but also marching forward, reopening Bourbon Street to the public and preparing to host the Super Bowl next month, as well as the season of celebration that precedes Mardi Gras. A crowd gathered on Bourbon Street on Saturday evening for a vigil that included a traditional second line. President Biden is scheduled to visit New Orleans on Monday.

”I believe only the power of prayer and faith in God can pull them and us through this time,” Gov. Jeff Landry, Republican of Louisiana, said on Sunday, referring to the pain the families of the victims and the community as a whole were navigating.

The attack ended when Mr. Jabbar, was killed in a shootout with the police that left two officers wounded. Officials praised the police for a swift response that they credited with sparing the city from more carnage.

Mr. Jabbar expressed allegiance to ISIS after a transformation that perplexed and troubled those who knew him. He had the group’s flag on the rented Ford F-150 pickup truck that he used in the attack. In a video that he recorded for his family, he said, “I wanted you to know that I joined ISIS earlier this year.”

Officials said on Sunday that they continue to believe Mr. Jabbar acted alone in carrying out the attack, and that they were still trying to determine whether he had deeper ties to ISIS. It remained unclear why he chose New Orleans as his target, officials said.

Christopher Raia, an F.B.I. counterterrorism official, said that individuals like Mr. Jabbar — who typically are radicalized online, use easily accessible weapons and act alone or in small clusters — were perhaps the “greatest terror threat” the country faces.

“They are difficult to identify, investigate and disrupt,” he said at the news conference on Sunday.

Investigators were also trying to find out where Mr. Jabbar went and what he did when he visited New Orleans in November, the second pre-attack visit that officials are aware of. The first visit, when he recorded the video images from a bicycle, took place in October.

Investigators discovered that he had left two improvised explosive devices in coolers at nearby locations shortly before ramming his truck into the Bourbon Street crowd early on New Year’s morning. They said he appeared to have had limited experience in building and using explosives, and the devices he created were crude, but they believed some of them could have been effective.

Mr. Jabbar had a transmitter in the rented pickup. “We believe that the transmitter would have functioned,” Mr. Myrthil said.

One of the coolers had been moved from where Mr. Jabbar had placed it, officials said, but the people who moved it were “unknowing Bourbon Street visitors” who had no connection to Mr. Jabbar.

Both devices were deactivated by the authorities shortly after the ramming attack.

Investigators said Mr. Jabbar had rented the pickup weeks before the attack, and drove it to New Orleans from his home in Texas, arriving on the afternoon of Dec. 31. Investigators found bomb-making materials at a residence he had rented in New Orleans, where he had set a fire just before setting off for the French Quarter. Officials said the fire burned itself out within a few hours and was already extinguished by the time firefighters arrived at the home.

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Joe Biden prepares to bow out

Published

7 hours ago

January 5, 2025

Press Room

This article is an on-site version of our The Week Ahead newsletter. Subscribers can sign up here to get the newsletter delivered every Sunday. Explore all of our newsletters here

Hello and welcome to the working week.

On Monday, the US Congress will preside over the electoral college vote count, which will certify Donald Trump’s election victory. Although this is typically no more than a small formality, the last occurrence four years ago was tarnished by the attack on the US Capitol building.

The Biden administration’s days are numbered. The FT’s Washington team will be keeping a close eye on any last-minute initiatives from the White House over the coming days, especially on Ukraine and the climate, as the outgoing president looks to consolidate his legacy.

Secretary of State Antony Blinken will meet South Korean foreign minister Cho Tae-yul on Monday, the first high-level diplomatic talks since President Yoon Suk Yeol’s impeachment. (Last week’s Lunch with the FT is an illuminating guide to Blinken’s foreign policy thinking.) Over the coming days, South Korea’s main opposition, the Democratic party, plans to summon Yoon to a parliamentary hearing and appoint special counsels to investigate his failed bid to impose martial law.

On Friday, Trump is set to appear for sentencing in the New York “hush money” criminal case. Justice Juan Merchan, who has presided over the trial, signalled in last week’s order that the president-elect could attend the hearing virtually and would not face jail time over the conviction.

That same day, the US Supreme Court will hear arguments on a law that would outlaw TikTok in the country if it is not sold to an American company. The ban is set to come into effect on January 19, a day before Trump’s inauguration. However, the president-elect has urged the court to delay the ban, saying he would prefer “to pursue a political resolution” instead.

Venezuela’s President Nicolás Maduro is set to be sworn in for a third term following his disputed election victory in July. Since the vote, Maduro has clamped down on his political opponents. Dozens of human rights campaigners and journalists have had their passports cancelled and opposition leader Edmundo González has sought political asylum in Spain. Expect a tightly choreographed show of power as his government remains on high alert.

There are a raft of trading updates from UK retailers this week, including Tesco, Sainsbury’s and Marks and Spencer. Anticipate analysis on what the reports reveal about consumer strength this Christmas season. Moreover, analysts will study the reports for clues on which supermarkets will be able to withstand the headwinds from the Labour party’s Budget in 2025, as increased employers’ national insurance contributions squeeze grocers’ margins.

One more thing . . .

It’s a big week for film and TV. Movie buffs can binge-watch the Critics Choice Awards, the National Board of Review gala, the AARP awards and the Golden Globes over the coming days. I won’t be joining them. I haven’t watched much of anything this year. And shamefully, I missed all 10 of our film critic’s best films of 2024.

What must-see film of the last 12 months did I miss? Let me know at harvey.nriapia@ft.com.

Key economic and company reports

Here is a more complete list of what to expect in terms of company reports and economic data this week.

Monday

Tuesday

Wednesday

Thursday

Greggs Q4 trading update, B&M Q3 trading statement, Marks and Spencer Christmas trading update, Tesco Q3 and Christmas trading statement
Peru interest rate
Bank of Mexico monetary policy minutes

Friday

World events

Finally, here is a rundown of other events and milestones this week.

Monday

US Congress meets to certify Trump’s election
Antony Blinken to meet South Korean Foreign Minister Cho Tae-yul
Golden Globe Awards
Malaysia’s court of appeal to hear jailed former prime minister Najib Razak’s bid for house arrest
Epiphany

Tuesday

Friday

US Supreme Court to hear arguments on a law that would ban TikTok if it is not sold to an American company
Venezuela’s Nicolás Maduro to be sworn in for a third term following his disputed election victory
President Joe Biden to meet Pope Francis and Italian Prime Minister Giorgia Meloni in Rome
Donald Trump to be sentenced in ‘hush money’ trial

Saturday

Sunday

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US Election countdown — Money and politics in the race for the White House. Sign up here

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FBI says suspect in New Orleans attack twice visited the city to conduct surveillance

Published

7 hours ago

January 5, 2025

Press Room

FBI says suspect in New Orleans attack twice visited the city to conduct surveillance

Nathan Williams, a University of New Orleans student, lights a candle at a memorial on Bourbon Street on Friday for the victims of a deadly truck attack on New Year’s Day in New Orleans.

Gerald Herbert/AP

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Gerald Herbert/AP

The FBI has revealed that the man who allegedly carried out the New Year’s Day attack in New Orleans had recently visited the city twice beforehand, and used “smart glasses” to record video of the area he later targeted.

In a press conference on Sunday, Lyonel Myrthil, the FBI special agent in charge of the New Orleans field office, said that Shamsud-Din Jabbar had traveled to New Orleans just weeks ahead of the attack that killed 14 people and injured many more.

One trip took place in October, while the other was in November. Myrthil also said Jabbar had ridden through the city’s French Quarter on a bicycle wearing smart glasses made by Ray-Ban that are capable of recording video and are connected to a user’s Facebook account.

Crowds return to a reopened Bourbon Street on Jan. 2, 2025, the day after the deadly truck attack in New Orleans.

Myrthil also said Jabbar traveled to Cairo, Egypt, in 2023 and Ontario, Canada, in the summer of 2024, although it is not clear whether those trips were connected to the attack. Jabbar was a former U.S. Army soldier who became inspired by ISIS, according to investigators.

The FBI said it is pursuing leads in Houston, where Jabbar lived, as well as Tampa, Fla.

“Our agents are getting answers to where he went, who he went with and how those trips may or may not tie into his actions here,” Myrthil said.

Sunday’s press conference offered a more detailed timeline of Jabbar’s actions in the moments leading up to the attack, when he allegedly drove a truck into a crowd celebrating the New Year on New Orleans’ storied Bourbon Street.

FBI agents showed video of Jabbar planting improvised bombs before the attack. Jabbar’s rental truck contained a transmitter that was meant to trigger the devices, according to investigators, but they did not explode. Two of the bombs were left in coolers, one of which was said to have been dragged around by unsuspecting revelers on New Year’s Eve.

Law enforcement officers from multiple agencies work the scene on Bourbon Street after a person drove a truck into the crowd.

After his truck crashed at the end of the attack, Jabbar exited the vehicle and fired at police, wounding at least two officers, before he was fatally shot.

The FBI said it had recovered two semi-automatic guns that Jabbar had with him in the truck: a 9mm pistol and a 308-caliber rifle. The rifle had a “privately-made silencer,” which was purchased during a private sale in Texas, investigators said.

On leaving the house he was staying in before the attack, Jabbar also set a small fire in a hallway, but the flames burned out before firefighters arrived, the FBI said.

The FBI still believes Jabbar carried out the attack by himself.

“All investigative details and evidence that we have now still support that Jabbar acted alone here in New Orleans,” said FBI Deputy Assistant Director Christopher Raia. “We have not seen any indications of an accomplice in the United States, but we are still looking into potential associates in the U.S. and outside of our borders.”

Officials said they are still unsure what the motive was for the attack, or why he chose New Orleans.

Also at the press conference, New Orleans mayor LaToya Cantrell said the city is working to improve safety, bringing in a tactical expert to assess security across the region. Mardi Gras parades begin Monday, and the city is hosting the Super Bowl next month. Police have used multiple vehicles and barricades to block traffic at Bourbon and Canal streets since the attack.

Cantrell also spoke of preparations for the visit of President Biden, who is planning to travel to New Orleans with first lady Jill Biden on Monday to grieve with the families of victims.

Louisiana Gov. Jeff Landry also spoke at the start of the press conference, saying the innocent lives lost will never be forgotten. Landry has declared a period of mourning for the victims, beginning on Monday, with a different victim to be remembered each day.

On Saturday, the last of the 14 victims of the attack were identified: LaTasha Polk, a nursing assistant in her 40s, and a British man, Edward Pettifer. Pettifer was the stepson of a former nanny to the Royal Family, which led Prince William, son of King Charles, to express his shock and sadness at the death.

The coroner’s office said all the victims died from blunt force injuries. Most victims were in their 20s, with the youngest victim 18 years old and the oldest 63. About 30 people were injured, and 16 remained hospitalized as of Friday.

Later on Saturday night, New Orleans residents held a vigil on Bourbon Street, tearfully carrying memorial crosses and pictures of victims.