PreferredAmong the companies with a capitalization of at least $10 billion, the largest increase last week was recorded by the American company Walgreens Boots Alliance, which is engaged in the global retail sale of drugs, whose shares increased by 23.79% during the last working week. The price of one share reached $11.76. The next gainer of the week is Constellation Energy Corporation. The shares of this American energy company increased by 20.92% during the past working week, reaching $305.19. The trio of gainers of companies with large capitalization is completed by the FTAI Aviation company, with an increase of 14.96%. The price of one share of this American company providing aviation services is $174.02.
Mobileye Global opens the top three large-capitalization companies with the biggest losses among last week's losers. The stock price of this company specializing in autonomous vehicle technologies has decreased by 27.88% in one week and now stands at $15.65. Next is Edison International. The price of shares of this American company supplying electricity decreased by 18.55% and reached $65. The trio of losers of the past week is completed by Constellation Brands. The price of the shares of this American company producing well-known brands of alcoholic beverages decreased by 18.07% and is $181.81.
US stock prices fell on January 10. All major stock market indicators fell for a second straight week, with the Dow Jones fell by 696 points, the S&P 500—by 91 points, and the Nasdaq—by 317 points. The yield on 30-year treasury bonds rose to up to 5%, the highest since November 2023. Most stocks of the domains in the S&P 500 fell, with the exception of energy, which rose slightly. Overall, more stocks fell than rose, while trading was higher than usual.
The new increase in the yield of US government bonds caused a shock among traders. Global stock markets continued to increase losses on Monday. S&P 500 futures were down 0.7%, while the Nasdaq 100 was down 1.1%. The stocks of tech companies—including Tesla, Palantir, and Nvidia—were among the top losers in premarket trading. European shares fell 0.7%. Ten-year treasury bond yields rose further to a 14-month high, bringing the increase to 15 basis points this year. Some bond market experts predict that the 10-year bond yield could reach 5% this year.
Thirty-year borrowing costs are slightly below the psychological 5% threshold. Until the specified US income market stabilizes, it will be difficult for the stock market to recover, economists believe.
The market value of the world's top 25 banks increased by 27.1% in 2024 to reach $4.6 trillion at the end of the fourth quarter compared to the same period in 2023. This increase is mainly due to the reduction of the refinancing rate by the US Federal Reserve. JPMorgan Chase remained the world's largest bank by market value, growing by 37.2% and reaching $674.9 billion. Goldman Sachs registered a noteworthy 42.9% increase, rising from 13th to ninth place.
On the other hand, TD Bank recorded a 20.1% drop in market value to $93.1 billion. China's top four banks—ICBC, Bank of China, Agricultural Bank of China, and China Construction Bank—saw a 30%-40% rise in market value, driven by China's stimulus package announced in September 2024.
Shares of the Magnificent Seven companies, which helped boost the S&P 500 in 2024, are expected to continue to rise this year as well, especially since US President-elect Donald Trump's return to the White House. Trump's plans to change tax policy and invest heavily in artificial intelligence have shaped expectations for the stock market. Dan Ives of Wedbush believes that tech stocks such as Nvidia Microsoft, Tesla, and Alphabet will also perform well in 2025. He predicts a 25% rise in tech stocks. Big tech companies are already adjusting to the new US administration. Meta is suspending its fact-checking program, while Microsoft, Alphabet, and Amazon have made large donations to Trump's inauguration fund. However, not all tech companies are expected to benefit. Analysts worry that Apple could face challenges, due to tariffs, particularly on its hardware products. Some analysts also warn that companies like Dell, HP and Logitech, which rely on China, will face problems if Trump decides to roll back import duties.
US stock markets face a big test after two years of strong growth as companies begin to release their quarterly earnings. Investors have high expectations for earnings. Analysts are predicting a 7.3% rise in S&P 500 earnings for the fourth quarter of 2024. But if companies fail to meet those expectations, it could hurt the stock market.
A strong US jobs report has fueled concerns about inflation, with the report showing a stronger-than-expected 260,000 new job gains and a lower-than-expected unemployment rate, which could lead to higher prices. This has raised concerns among investors that the Federal Reserve may not cut the refinancing rate to control inflation, which would hurt stock prices. Investors expected the Federal Reserve to start lowering interest rates in May-June, but now they are not so sure about it. Some analysts are even predicting the possibility of an interest rate hike, which would have seemed unlikely a few months ago, when interest rates were expected to continue to fall. As a result, long-term US Treasury bond yields have risen sharply. This increase has raised concerns that bonds will become more appealing than stocks, reducing interest in stocks. If bond yields continue to rise, 2025 could be a difficult year for the stock market. Investors now await the release of the consumer price index on Wednesday, as a higher-than-expected figure could cause even greater market volatility.
Eurozone households have slightly reduced their savings in the third quarter of 2024, with the savings rate falling to 15.3% from 15.6% in the previous quarter; but this indicator remains well above the pre-pandemic level of 12-13%. Over the past few years, households have saved more of their income, partly due to inflation, and in an effort to recover lost wealth. This has led to weaker consumption and slower economic growth. In contrast to the eurozone countries, the personal savings rate in the US was much lower, at 4.4% in November 2024, indicating that US citizens have more confidence in job security and economic conditions. The European Central Bank hoped for a recovery in consumption amount, but now acknowledges that savings levels may remain unusually high for some time, partly due to economic and political uncertainties. While consumption in eurozone countries rose 1.1% last quarter, investment in main means such as homes and renovations fell slightly, remaining at a historically low level. Corporate profitability improved after several quarters of decline.
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