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🔐 Why Tech's Dark Side Offers an Investment Opportunity

Plus, why the innovations of tomorrow may finally materialize, and more

January 07, 2025

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Happy Tuesday! Cybersecurity ETFs are gaining traction as AI-driven cyber threats escalate, pushing companies to ramp up defenses. Here’s why investors are eyeing this sector for growth. Also, read why the promises made of a tech utopia could finally be coming to fruition.

—Josh Enomoto

Plus, if you’re interested in learning more about cyclical trends in the market, check out today’s sponsor.

MARKET RECAP

Yesterday: Stocks climbed Monday, led by gains in technology and communication sectors, while defensive plays like utilities lagged. Bond yields rose, with the 10-year Treasury surpassing 4.6%, as markets reacted to shifting tariff discussions. Investors now turn their focus to a packed week of labor data that could shape expectations for 2025.

On Our Radar: After going over the details of the U.S. trade deficit, analysts will assess job openings data later this morning. On the earnings front, Albertsons will disclose its financial results before Wednesday’s opening bell.

TOP STORY

The surge in AI-powered cyberattacks is fueling interest in cybersecurity ETFs, as businesses invest heavily to protect against evolving threats.

SPONSORED CONTENT

The stock market is poised for double-digit gains of 8% to 12% in 2025, according to the latest edition of the Stock Trader’s Almanac. The go-to guide for traders, investors and money managers – now in its 58th year – shows investors stock market cycles and trends and patterns, all laid out in a calendar format. 

This handy tool has been an institution since the late 1960’s when Yale Hirsch, a veteran investor, created a way to help the average investor by organizing a slew of data points on a calendar basis. Hirsch was fascinated with stock market history, cycles and patterns and discovered early on that some days of the week and days of the month are better for stocks than others. 

He later passed the torch to his son Jeffrey Hirsch who made his own accurate predictions about the performance of stocks. Ready to get your copy of the Stock Trader’s Almanac 2025? Click here. 

FIVE ZINGERS

Moving On: Canadian Prime Minister Justin Trudeau announced his resignation on Monday after nearly 10 years in power. Learn about the implications this political move has for U.S.-traded stocks of major Canadian enterprises.

Frozen Out: Winter Storm Blair has impacted much of the nation, imposing heavy snow and frigid temperatures on Mid-Atlantic states. Read about which companies suffered and which entities have thrived during this cold spell.

Bath Time: Although shares of specialty retailer Bath & Body Works slipped over the past 52 weeks, Goldman Sachs analysts reiterated a Buy rating on BBWI stock. Learn why the experts are so enthusiastic about the business.

Cutting Edge: Semiconductor juggernaut Nvidia posted all-time highs on Monday as investors clamored over compelling growth opportunities. Here are some of the key storylines from this year's CES conference.

Bon Voyage: Shares of major U.S. carriers popped higher yesterday amid strong travel sentiments. Discover the TSA report that sent investors scrambling for the 'buy' button.

SPECIAL OFFER

Editor’s Note: Every week, Benzinga Edge members receive the Insider Report. It’s a rundown of what to expect from the markets in the week to come, which sectors are outperforming and why, and most importantly, a selection of hand-picked stocks that are poised to move up because of that week’s trends. Here’s a sneak peek:

2024 was one for the record book as the S&P 500 rallied just over 23% on the year. The top-performing sector was communications, and it's amazing to consider how well the market did with tech not dominating its peers.

The quantum computing sector roared to life and now it looks like artificial intelligence may have a competitor in terms of a theme within tech. I think this will turn out to be very bullish for semiconductors, and I'm looking for this to become a market leader again in 2025.

Tech isn't going anywhere – and it's almost as if the future we were promised decades ago may finally be coming to fruition. I'm not saying there won't be consequences to the future, but all I know is that I want to own equities during this transition period.

To keep reading and to find out how investors can prepare for the coming shift in Fed policy, sign up for Benzinga Edge here.

SPECIAL OFFER

Join Wall Street expert Chris Capre on Monday, January 8, at 6 PM ET for a live webinar: Mastering Volatility: Short-Term Trading Strategies for a Shifting Market.

Learn how to spot high-potential trade setups and capitalize on short-term volatility in today’s unpredictable market. Chris will guide you through key indicators and proven strategies to help you maximize profits.

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