Trading results for 28 January 2025
Dropped, rebounded… A bounce… Buy the dips… Call it what you will, but Tuesday’s events have unfolded dozens, if not hundreds, of times before. The fact remains that after Monday’s brief but intense sell-off, the dust settled on Tuesday, and investors eagerly resumed buying heavily discounted stocks. This was most clearly demonstrated by Nvidia (NVDA, +8.93%), whose share price plummeted nearly 17% on Monday before recovering by almost 9% on Tuesday. All this in a company with a market capitalisation exceeding $3 trillion! Such turmoil erupted over a relatively unknown Chinese AI chatbot developer – DeepSeek.
Trading on Tuesday started cautiously, hovering near the zero mark. However, as the market gained momentum, confidence strengthened, and investors became increasingly eager to buy stocks. By the end of the day, all indexes closed near their daily highs, gaining from 0.31% for the Dow Jones (DJIA-30) to over 2% (+2.03%) for the high-tech NASDAQ Composite.
The ITS family of indexes also joined the rally. Moreover, the global market index ITS World (ITSW) not only added more than 1% (+1.12%) but also reached a new all-time high (ATH) of 1,260.49 points. The Islamic securities index lagged slightly, gaining 0.72%, despite its significant exposure to tech stocks. In fact, the top 10 best-performing stocks on Tuesday consisted entirely of tech companies, ranging from Nvidia (NVDA, +8.93%) and Salesforce (CRM, +3.70%) to Cisco Systems (CSCO, +0.59%) and Tesla (TSLA, +0.24%).
However, unlike ITSW, the ITSS index lacks Chinese stocks, which are typically more dynamic and volatile, and saw substantial gains yesterday. For example, shares of Chinese online retailer Alibaba (BABA, +6.76%) ranked among the top three gainers, rising nearly 7%. Chinese tech giant Baidu (BIDU, +3.57%) also attracted strong investor demand, adding over 3.5% to its market capitalisation. Some analysts believe that Baidu could be among the beneficiaries of the 1 trillion yuan allocated by the Chinese government for AI-related projects.
Overall, as many expected, the sell-off turned out to be a localised event, with investors swiftly refocusing on corporate news and macroeconomic analysis. Ahead lies the US Federal Reserve’s FOMC meeting and a crucial press conference by its Chair, Jerome Powell.