U.S. stocks are recoiling on worries that good news on the job market may be too good and prove to be bad for Wall Street by keeping inflation and interest rates high. The S&P 500 was down 0.9% early Friday.

In other words, history says the Nasdaq could advance 16% in 2025, but most Wall Street analysts see even more upside in Nvidia ( NVDA -0.02%) and Lam Research ( LRCX -0.62%), two companies that reset their soaring share prices by completing 10-for-1 stock splits in 2024.

Investors appeared to have entered the new year with cautious footing, with uncertainties around future Fed rate cuts and policies under the upcoming Trump administration. Thursday marked the first day for the market in 2025 and ended with the benchmark index in red.