Trading results for 19-23 May 2025
To many market participants, the past week might have seemed like a string of disappointments best forgotten. But that would be an oversimplification. On the contrary, it served as a stark reminder that there is no such thing as absolute investment bliss – and one must always be prepared for sudden and unfavourable turns of events.
Following four weeks of confident growth, Monday once again saw strong demand for equities – as if the spring rally was ready to continue. But that optimism quickly faded. The rest of the week played out to the drumbeat of advancing bears, who swiftly overwhelmed the bulls and erased all previous gains.
Interestingly, the reasons for the sell-off varied almost daily, making it hard to pinpoint any single underlying cause. So perhaps it’s fair to say: IT HAD TO HAPPEN. Investors likely sensed that four straight weeks of growth was a bit too much – and decided it was time for a pause. And so they took one.
The most frustrating moment came on Wednesday, when a sell-off emerged seemingly out of nowhere mid-session, accompanied by higher volumes. Yes, the issue of U.S. government debt is nothing new – but that does not mean it should suddenly resurface like a jack-in-the-box and spook the market into panic selling. Yet that is exactly what happened.
And just as the week was drawing to a close and the phantom pains over the new U.S. budget seemed to subside, President Trump stepped back onto the stage, serving up a fresh helping of tariff-related negativity. His abrupt attack on Apple (AAPL) and Europe in general shocked many and sent markets tumbling even further.
As a result, the week proved not disastrous, but certainly painful. All major U.S. indexes lost around 2.5% over the five trading days, with the NASDAQ Composite slightly outpacing its peers with a 2.61% decline. This indicates that the sell-off was broad-based and affected nearly all sectors of the economy.
Only one sector finished the week in the green – Basic Materials, up 0.38%, largely thanks to sustained demand for gold. Its price rose nearly 5%, once again confirming its status as a safe haven for investors. This was reflected in the S&P 500’s top performer of the week – gold miner Newmont Corporation (NEM), whose shares gained more than 10%.
While the losses among U.S. indexes were considerable, the ITS family of indexes proved far more resilient despite the broader negativity. The ITS World Index (ITSW), less tied to the U.S. market and more geographically diversified, fell by just 0.5%. Meanwhile, the ITS Shariah Index (ITSS) lost 1.7% – still a much smaller drop than that of the leading American benchmarks.
Overall, it is clear that market conditions have begun to deteriorate once again. Issues surrounding U.S. debt management and tariff risks continue to hang over the market like the Sword of Damocles, generating deep uncertainty about the future and prompting some investors to start exiting positions.
Fortunately, such sentiment remains sporadic for now, and declines are still measured in low single digits. However, tensions are increasingly palpable – and making any predictions, even in the short term, is now extremely difficult.