Trading results for 17 January 2025
As many analysts predicted, the past week turned out to be remarkably eventful and successful. Markets rose across the board and posted significant gains by the end of the week. The main drivers of this growth were strong macroeconomic data on US inflation and the solid quarterly reports from the largest US banks. On Thursday, however, the bears tried to regain control from the bulls. All they managed to do was briefly seize the initiative. As a result, the first full week of the new year ended with a decisive victory for the bulls, and all major US indexes rose, ranging from nearly 2.5% for the NASDAQ Composite index (+2.45% for the week) to a notable 3.7% for the Dow Jones index (DJIA-30). The leading benchmark of the US market, the S&P500 index, gained almost 3% (+2.91%) during this time.
The ITS family of indexes also worked to keep pace with their US counterparts, posting gains of around 2%. The ITS World Index (ITSW), representing the global market, gained slightly less at +1.89% for the week, while the ITS Shariah Index (ITSS) grew by a slightly higher +2.39%. For ITSS, the past week was outstanding, as trading began on 14 January for ETF shares whose portfolio consists entirely of stocks included in the ITSS index. This means that now anyone can invest in the shares of 30 of the largest US companies that fully comply with Shariah standards and have been approved by specialised Islamic authorities by purchasing shares in the ITS Shariah ETF (ITSS). Trading in ITSS shares began at a price of just $10 per share.
When it comes to individual stocks, the main stars of the past week were undoubtedly the shares of the largest banks, which delivered excellent results for the fourth quarter of 2024. However, the ITS family of indexes includes shares of only one bank, although, as we know, the largest—JPMorgan Chase (JPM) — included in the ITS World Index (ITSW). It is worth noting that bank shares cannot be included in the ITS Shariah Index, as the activities of financial institutions are incompatible with Shariah principles.
The “Magnificent Seven” stocks, representing the largest technology companies, continue to be in high demand. For example, one of the best-performing stocks on Friday across both ITS indexes was Nvidia (NVDA, +3.10%). The surge in investor interest was triggered by analysts at the well-known firm Barclays raising the company’s target price from $150 to $165 per share.
Tesla (TSLA, +3.06%) shares also remain among the top picks, with their recent rise attributed to Elon Musk’s close ties to President Trump. Tesla appears to be the primary beneficiary of Trump’s inauguration at present.
As for the main losers of the week, this category was led by medical companies. The healthcare sector was the only one to end the week in negative territory, losing 0.17%. The biggest losses were incurred by one of the sector's leaders, pharmaceutical giant Eli Lilly (LLY, -4.21%), whose shares lost nearly 10% of their value during the week. The company faced multiple selling waves. Initially, its management announced that profits from its flagship drugs — Mounjaro (a diabetes treatment) and Zepbound (an obesity treatment) — for 2024 would be slightly below earlier forecasts. Investors reacted negatively and started selling the stock. Later in the week, additional selling pressure came after reports emerged that Eli Lilly's competitor, Norwegian company Novo Nordisk (NVO), which produces similar drugs, might have to reach an agreement with the FDA (Food and Drug Administration) to reduce the prices of its medicines by 20–40% under Medicare insurance programmes. Investors feared that Eli Lilly might also have to follow suit.
Fortunately, at present, there is still significantly more positivity than negativity, and the market continues to climb steadily. As the key moment of President Trump’s inauguration approaches today, all indexes are near their historical highs. If no unexpected events occur, indexes will likely reach new all-time highs this week.