Trading results for 19 February 2025
Wednesday is traditionally considered a challenging and tense day, especially when an FOMC meeting decision is expected or – as yesterday – the release of its minutes. The market was notably anxious ahead of the event: futures on major indexes were slightly down from the morning, and the indexes themselves declined at the opening. Most participants took a wait-and-see approach. Currently, investors attach great (and sometimes exaggerated) importance to forecasts on the Fed’s monetary policy – making it impossible to ignore.
As a result, until the minutes were released – which took up most of the day – the market was quiet, subdued and uneventful. By midnight Astana time, when the minutes were due, indexes hovered near zero, with investors still waiting. Fortunately, this time there was no serious turmoil: the minutes were generally reassuring and did not cause significant disruption among investors. Speculators quickly took advantage of this, pushing indexes to new highs. As a result, the Dow Jones (DJIA-30) and NASDAQ Composite closed with modest gains of +0.16% and +0.07%, respectively, while the main benchmark of the U.S. market – the S&P 500 – not only crossed the zero mark but also hit a new all-time high, closing up 0.24%.
However, the ITS World Index (ITSW) was unable to replicate the S&P 500’s success and retreated slightly from record levels. Over the previous seven sessions, it had set new all-time highs, but yesterday, that streak ended, with the index losing 0.24%. In contrast, another member of the ITS family – the ITS Shariah Index (ITSS) – finished in the green, gaining 0.43% for the day.
Looking at the ITSS breakdown, where 20 stocks gained and only 10 declined, it may seem like a broad and confident rally. However, this was not entirely the case. The main drivers of ITSS’s growth were pharmaceutical sector giants: Merck & Co. (MRK, +2.77%), Johnson & Johnson (JNJ, +1.87%) and medical equipment manufacturer Abbott Labs (ABT, +1.50%).
In general, in a calm and somewhat directionless market, healthcare and pharmaceutical stocks stood out as the strongest performers. The Healthcare sector in the S&P 500 delivered the best performance of all industries, rising 0.91% for the day. This was particularly noticeable given that six out of eleven sectors ended in the red, while the symbolic gains in Real Estate (+0.06%) and Energy (+0.11%) were hardly significant.
There was also some good news from the global market. In the ITSW index, a recent entrant – added just 10 days ago – stood out: Garmin Ltd. (GRMN, +12.64%), a leading developer of navigation devices and GPS equipment. Its stock soared following the release of quarterly earnings before the market opened. As a result, Garmin (GRMN) became the top-performing stock in both the S&P 500 and ITSW.
The company reported results that exceeded expectations, driven by strong sales growth in fitness equipment, automotive and outdoor segments. Additionally, Garmin’s annual revenue reached a record $6.3 billion, further boosting investor confidence. Naturally, such a sharp rise in its stock contributed significantly to the ITSW index.
Overall, optimism in the market appears to be fading. While the market is still moving higher, it is increasingly driven by inertia, and each day this becomes more challenging. Growth momentum has clearly slowed, and it seems many investors are simply waiting for a trigger to start locking in profits. The scent of a correction is in the air – best to be prepared.