This week saw mixed performance across financial markets in the wake of second-time President-elect Trump’s inauguration as investors digested economic data, corporate earnings, and geopolitical developments. While U.S. equity indices continued their upward trajectory, commodities and currencies experienced fluctuations driven by macroeconomic factors. Here’s a detailed breakdown of how different asset classes fared over the week.
Stock Indices
S&P 500 (SPX)
The S&P 500 gained +1.77% WTD, ending at 6,101.25, continuing its bullish momentum driven by strong earnings reports from technology and financial stocks. Year-to-date, the index has climbed +3.35%. fueled by optimism surrounding a resilient U.S. economy despite inflation concerns.
Top Gainer:
NextEra Energy (NEE): +5.20%, $72.83
Top Loser:
Texas Instruments Incorporated (TXN): -7.52%, $185.52
Dow Jones Industrial Average (DJI)
The Dow Jones led indices with a +2.57% WTD at 44,418.76, with industrial and financial sectors leading the gains. The index has risen +4.14% YTD, driven by optimism in the manufacturing sector.
Top Gainer:
Walmart (WMT): +1.01%, $94.76
Top Loser:
Nvidia (NVDA): -3.12%, $142.62
Nasdaq 100 (NDX)
The tech-heavy Nasdaq 100 advanced with a +1.45% WTD gain, at 21,774.01, at as AI and semiconductor stocks continued their rally. Year-to-date, the index has surged +3.10%, making it a great performing major index so far in 2025.
Top Gainer:
PDD Holdings Inc. (PDD): +7.05%, $111.34
Top Loser:
Microchip Technology Incorporated (MCHP): -5.34%, $56.39
Russell 2000 (RUT)
The Russell 2000, representing small-cap stocks, rose +1.14% WTD, at 2307. reflecting improved investor sentiment towards domestic growth opportunities. The index is also up +2.94% YTD, with positive outlooks on smaller companies amid economic stability.
Commodities
Crude Oil
Oil prices dropped -4.41% WTD, ending at $74.60, reflecting increased supply levels and easing geopolitical tensions in key producing regions. Year-to-date, it is still up by +3.8%, though there are concerns about slowing global demand.
Key Driver: Rising U.S. inventories and uncertainty over OPEC’s production strategy.
Gold
Gold posted a weekly gain of +2.51% WTD at 2770.8, maintaining its safe-haven appeal amid market uncertainties. The precious metal is also up 5.55% YTD. supported by expectations of potential interest rate cuts.
Key Driver: Investor demand for inflation hedging and geopolitical risks
Currencies
USD/EUR
The U.S. dollar weakened against the euro, declining 2.11% WTD and 1.32% YTD, as economic data from the Eurozone showed resilience, raising expectations for ECB tightening measures.
Key Driver: Market speculation on diverging interest rate policies between the Federal Reserve and ECB.
USD/GBP
The British pound also gained slightly against the U.S. dollar, with USD/GBP falling -2.56% WTD but showing a +0.33% YTD increase. Strength in the UK economy bolstered investor confidence in the pound.
Key Driver: Strong economic data and hawkish comments from the Bank of England.
Interest Rates
The U.S. 10-Year Treasury Yield is up by +0.4% WTD, reflecting investor expectations of a more dovish stance from the Federal Reserve. YTD, the yield increased by +5.8%.
Key Driver: Federal Reserve commentary on inflation and economic growth outlook.
Key Takeaways
- Equity markets posted solid gains, with the Dow Jones leading the way on strong financial earnings.
- Crude oil saw notable declines, while gold remained strong.
- The euro and British pound moved against the U.S. dollar amid shifting central bank expectations.
- Interest rates edged higher as bond markets priced in potential policy tightening.
Looking Ahead
Next week, market participants will focus on key economic data releases, including GDP figures and the upcoming Federal Reserve meeting, which could set the tone for future market movements.
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Sources: Yahoo Finance