NEW YORK (AP) — Wall Street held firmer on Wednesday, a day after strong reports on the economy hurt U.S. stocks by stirring up worries that inflation and interest rates may remain higher than expected. The S&P 500 rose 0.2% to recover a bit of its 1.1% ...

Shares of the artificial intelligence (AI) and data analytics software company skyrocketed 340%. Palantir's additions to the S&P 500 and Nasdaq-100 indexes helped fuel investor excitement. Most Wall Street analysts don't have high hopes for Palantir in 2025.

The U.S. stock market just had another fantastic year. The broad-based S&P 500 (SNPINDEX: ^GSPC) returned 23%, the blue-chip Dow Jones Industrial Average (DJINDICES: ^DJI) advanced 13%, and the technology-focused Nasdaq Composite (NASDAQINDEX: ^IXIC) surged 29% in 2024.

Good news for the U.S. economy is back to being bad for Wall Street as the S&P 500, Dow Jones industrial average and Nasdaq all post losses.

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.

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.

Rising technology stocks helped U.S. indexes recover more of their holiday-season slide that bridged the new year.

Most Wall Street analysts expect Palantir and Super Micro shares to decline in 2025, and certain analysts recommend selling the stocks. Palantir is a risky investment because of its expensive valuation,