Trading results for 12-16 May 2025
Just over a month ago, the mood seemed gloomy and hopeless. Everyone was talking about a looming recession and the approach of May – the time when the old adage “Sell in May and go away” typically takes hold. Investors were preparing to offload their portfolios, waiting only for the right moment. But now we are seeing a completely different picture.
Despite all the market scepticism, it continues to rise – and not just rise, but do so with notable confidence. Last week’s performance can even be described as outstanding. Interestingly, the rally was fundamentally justified and quite explainable only in the first two days – Monday and Tuesday. After that, things appeared to stall: each new day started either in the red or flat. Yet by the end of each session, a new wave of inexplicable optimism swept over market participants, pushing the indexes solidly into positive territory.
As a result, we witnessed one of the best weeks in the past eighteen months. All the major U.S. indexes climbed out of the April “tariff” pit and moved back towards their historical highs – now less than 3% away (at least for the S&P 500).
And what are 3% after all? A mere trifle, considering that over the past week alone, the S&P 500 rose more than 5% (+5.07%), while the tech-heavy NASDAQ Composite gained an even more impressive 7.15%. Only the venerable Dow (DJIA-30) slightly lagged behind its younger peers, adding a still respectable 3.41%. In any other situation, such growth would be considered exceptional – but not this time.
In short, the market is calm, and investors are brimming with optimism and belief in a bright future. Still, such an idyllic picture might raise concerns – it all seems a bit too perfect.
Sectoral performance confirms this sentiment: all 11 economic sectors closed the week in the green. This in itself is remarkable, as it had not happened once in 2025. Leading the charge were those sectors that typically attract fearless investors snapping up stocks indiscriminately.
Unsurprisingly, the main drivers of growth were stocks in the Technology, Consumer Cyclical and Communication Services sectors, which on average gained 7.76%, 6.82% and 6.05% respectively. Resource companies underperformed, with their shares rising by just 0.6%. The sector was weighed down primarily by profit-taking in gold, which dropped 4% over the week. The natural gas market also fared poorly, with average losses of around 2.5%, while agricultural grains saw prices fall by 1–2%, depending on the commodity.
ITS indexes moved largely in line with U.S. benchmarks. Both the ITS World Index (ITSW), which tracks global companies, and the ITS Shariah Index (ITSS), representing Shariah-compliant stocks, posted confident gains of 2.48% and 5.33% respectively. The reason ITSS outperformed ITSW by more than double is clear: it is heavily weighted toward U.S. issuers, which have been leading the global market rally.
In contrast, the ITSW includes European and Asian stocks, which have yet to show the same kind of rapid growth. For example, Hong Kong’s Hang Seng Index and Europe’s Stoxx 600 each rose just over 2% last week. This, of course, affected ITSW’s overall performance. However, it is worth noting that despite its more moderate rise, the ITSW is now the closest of all to reaching its all-time high – less than 2.5% away. Hopefully, that mark will be crossed in the very near future.