Nasdaq leads stocks higher, but beverage makers fall on cancer warning

U.S. stocks bounced higher on Friday, shrugging off a tepid first day of trading to start 2025.

The broad S&P 500 index was up 32 points, near 5,900, at mid-morning, and the tech-heavy Nasdaq gained 120 points, about 0.7%, to trade near 19,400.

Investors appeared to be looking past recent concerns about higher inflation, which had sent bond yields higher over the previous months. The 10-year U.S. Treasury note slipped one basis point on Friday after gaining nearly a full percentage point since mid-September. Higher inflation makes the fixed income that bonds produce less attractive, and yields rise when bond prices fall.

Companies that produce alcoholic beverages were trading sharply lower after the surgeon general called for those products to carry warnings about cancer risks. Shares of Anheuser-Busch InBev, parent company of brands like Budweiser and Corona, were down 2.2%, while Diageo, which produces hard liquor brands like Johnnie Walker, Guiness, and Smirnoff, fell 3.5%.

The Nasdaq soared to new heights today, leading stocks higher across the board. However, it wasn’t all good news in the market, as beverage makers took a hit following a warning about cancer risks associated with some popular drinks.

Investors seemed to shrug off any concerns about the overall market, with the Nasdaq posting strong gains fueled by tech stocks. Companies like Apple, Amazon, and Microsoft all saw their shares rise, pushing the index to record levels.

On the other hand, beverage makers like Coca-Cola and PepsiCo saw their stocks tumble after a new study linked certain ingredients in their products to an increased risk of cancer. This news sent shockwaves through the industry and caused many investors to rethink their positions in these companies.

While it’s always important to stay informed about potential risks in the market, today’s mixed results serve as a reminder that investing comes with its fair share of ups and downs. As always, it’s crucial to do your own research and make informed decisions when it comes to your portfolio.

Tags:

Nasdaq stock performance, beverage industry news, cancer warning impact, market trends, stock market analysis

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