Together with you we would like to take a look at the current weekly history. What was important? What moved the market? We have summarized the most important events clearly for you.
Global stock market – Turbulent Wednesday on the American markets
Both the German and American stock markets suffered and posted losses this week. The German leading index DAX® was down 3.2 percent on Friday afternoon. The Dow Jones Industrial Average® and the NASDAQ-100® lost 3.1 percent and 3.4 percent, respectively, through Thursday evening. The last of the three major US indices, the S&P 500®, lost around 3.3 percent by Thursday evening.
Federal Reserve – interest rate cut and subsequent earthquake
On Wednesday evening, the Federal Reserve announced that it would cut interest rates by 25 basis points. The US key interest rate will therefore be in the range between 4.25 and 4.5 percent. The central bank also signaled that fewer interest rate cuts are expected in 2025 than in the previous year. According to the published interest rate projection, most council members expect two rate cuts next year, assuming the economy grows steadily and inflation continues to fall. In September, the Federal Reserve announced four interest rate cuts. An average key interest rate of 3.9 percent is expected for the end of 2025, compared to 3.4 percent in September. With regard to inflation, a figure of 2.5 percent is expected for the coming year. The US market reacted extremely negatively to the announcement. On Wednesday, the S&P 500® fell by around 2.4 percent, the Dow Jones Industrial Average® by 2.6 percent and the NASDAQ Composite Index® even by 3.6 percent.
Broadcom – share price rises for the semiconductor developer
Broadcom shares experienced a sharp rise Friday last week and this Monday. The trigger was the semiconductor developer’s quarterly report published on Thursday evening. Accordingly, the company was able to increase its sales by around 44 percent to $51.5 billion in the 2024 financial year. The company also announced strong growth opportunities for the next few years. As a result, the share price rose by around 25 percent. However, the positive effect of the announcement appeared to continue even after the end of the week. The share price rose again on Monday by around 11.21 percent to around USD 250. However, the share price fell again over the course of the week and is 13 percent below Monday’s all-time high. Since the beginning of the year, Broadcom shares have gained almost 100 percent.
Micron Technology – big losses after quarterly figures
The US chip manufacturer Micron Technology presented its figures for the first quarter of the 2025 financial year on Wednesday after the US stock market closed. Sales increased by 84.1 percent year-on-year and amounted to $8.709 billion. Earnings per share were $1.12 in the same quarter last year and are now at $1.67, representing growth of nearly 50 percent. For the second quarter, Micron forecasts sales of $8.1 billion. The main reason is weak figures in the market for DRAM chips, which make up a large part of sales. This market is suffering from weak demand for PCs and smartphones. According to market reaction, investors were disappointed with the numbers, with the stock losing over 16 percent of its value on Thursday. The year was like a roller coaster ride for the share, until mid-June it rose and was up almost 90 percent. After that, things went downhill and the shares are now trading at about the same level as at the beginning of the year.
Novo Nordisk – Study results trigger share price slide
On Friday afternoon, the Danish pharmaceutical company published new study results for the new diet CagriSema. The weight loss is higher than with the current drug, but the values are almost the same as with the competing product from Eli Lilly. Because with CagriSema the weight loss after 68 weeks is 20.4 percent and with Zepbound from Eli Lilly it is 20.2 percent. The market reacted to the news with a strong sell-off of the share price, which fell by almost 30 percent at its low, but recovered somewhat and was still down 20 percent on Friday afternoon. This means that the performance since the beginning of the year has been around -15 percent.
Ifo survey – export expectations fall in December
Not much of the brightening mood in November remained in the following month. The Ifo Institute’s barometer for export expectations fell from minus 5.8 points in November to minus 6.1 points for December. The metal industry is the sad tip of the iceberg, because, as in the previous month, the highest declines in exports are expected here. A similar picture emerges in the expectations of textile and clothing manufacturers and the automotive industry. In contrast, the luxury and food industry is expecting a significant increase in foreign business. A not so positive, but still optimistic attitude prevails among electronic equipment manufacturers. One of the negative factors is the possible introduction of high tariffs on goods from Europe, which could accompany Donald Trump’s inauguration.
Annual outlook for 2025
Jörg Scherer, Head of Technical Analysis at HSBCanalyzes the DAX® and other exciting stocks for you every trading day in our in-house Daily Trading Newsletter. A number of things are currently awaiting you in view of the upcoming end of the year Special editions in which an outlook on the next year from a technical perspective is shown. If you are also interested in our Daily Trading newsletter, you can sign up free subscription Register and receive daily updates Chart analysis be happy.
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Source: HSBC