January 24, 2025, New York - US markets continued their strong upward trend with major indices closing higher for the fourth consecutive trading day. Investors maintained positive sentiment driven by strong corporate earnings and expectations around Trump administration's economic policies. The S&P 500 index closed at a record high of 6,118.71, up 0.53%, while the Dow Jones Industrial Average rose 0.92% to 44,565.07, and the Nasdaq gained 0.22% to close at 20,053.68.
Market Overview
The US market continued its rally that began in early January, reflecting high investor expectations. Strong corporate earnings reports and the Trump administration's aggressive economic policy drive positively influenced investor sentiment. In particular, President Trump continued to make market-friendly statements at the World Economic Forum (WEF), urging the Fed to cut rates and calling on OPEC to lower oil prices.
Economic Outlook
The US economy maintains robust growth with easing inflationary pressures. This increases the possibility of the Fed moderating its rate hike pace, which is expected to positively impact the stock market. However, changes in Trump administration policies, trade environment uncertainties, and geopolitical risks could still act as factors expanding market volatility.
Investment Strategy
Positive Investment Opportunities
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Healthcare Sector: Biotech companies are expected to maintain high growth supported by innovative drug development and government support. Particularly, Moderna (MRNA) saw its stock price surge on expectations for cancer vaccine development and is expected to provide promising investment opportunities going forward.
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Energy Sector: GE Aerospace (GE) presented positive earnings outlook for 2025 along with strong Q4 results. Progress in resolving supply chain issues has raised expectations for aviation industry recovery.
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Luxury Consumer Goods: The luxury consumer goods market is expected to continue growing alongside European economic recovery. Luxury brand companies like LVMH and Kering are increasing their investment appeal based on solid performance.
Specific Investment Strategies
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Moderna (MRNA): High long-term growth potential due to expectations for cancer vaccine development and AI technology integration.
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GE Aerospace (GE): Expected to benefit from aviation industry recovery and could be a stable investment based on positive earnings outlook.
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LVMH: Expected to maintain steady performance along with European luxury market growth.
Risk Management
Risk Factors
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Interest Rate Hikes: The possibility of Fed rate hikes remains, and market volatility could increase depending on the pace and magnitude of rate increases.
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Trade Environment Changes: Changes in Trump administration's trade policies could bring uncertainty to the global economy, and trade friction with China in particular could negatively impact US corporate earnings.
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Geopolitical Risks: Geopolitical risks such as prolonged Ukraine war and intensifying US-China tensions could dampen investment sentiment and strengthen preference for safe-haven assets.
Risk Management Strategies
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Portfolio Diversification: Minimize exposure to specific risks by diversifying investments across various asset classes.
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Currency Hedging: Utilize currency hedging strategies to reduce risks from exchange rate fluctuations.
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Defensive Stock Investment: Seek stable returns by investing in defensive stocks that are less sensitive to economic cycles.
Analysis of Major US Index Movements
Major US indices closed on January 24 as follows:
Index | Change | Closing Value |
S&P 500 | 0.53% | 6,118.71 |
Dow Jones Industrial Average | 0.92% | 44,565.07 |
Nasdaq | 0.22% | 20,053.68 |
The S&P 500 index set a new all-time high, marking its seventh rise in eight days since early January. The Dow Jones Industrial Average showed strength with a 408-point increase. The Nasdaq index continued its upward trend for the fourth consecutive trading day, albeit with a relatively modest gain. The limited rise in the Nasdaq index was partly due to declining semiconductor stocks and rising Treasury yields.
Impact on European and Asian Markets
European markets reached record highs, driven by luxury stocks and economic optimism. Asian markets rose on the back of US market gains and the Bank of Japan's rate hike. The Bank of Japan decided to raise its benchmark rate by 0.25 percentage points to 0.5% at its monetary policy meeting. This marks the largest rate increase since 2008. With inflation exceeding expectations, the Bank of Japan indicated the possibility of additional rate hikes. The Swiss National Bank (SNB) maintained its accommodative monetary policy by cutting its benchmark rate by 0.5 percentage points. The SNB took measures to stimulate the economy as Swiss inflation is expected to slow and economic growth weaken.
Interest Rates and Dollar Index Movements
The US 10-year Treasury yield rose to 4.634%. The dollar index fell 0.25% to 107.84. The dollar weakened following President Trump's comments pressuring for rate cuts. The Bank of Japan's rate hike led to yen strengthening, which contributed to dollar weakness.
Sector News
Tech
President Trump signed executive orders to secure US leadership in cryptocurrency and artificial intelligence (AI). This is interpreted as a measure to strengthen cryptocurrency market regulation and support AI technology development. Trump also showed interest in the cryptocurrency market by proposing bitcoin reserves. OpenAI, Oracle, and SoftBank announced the 'Stargate Project' to invest $500 billion in new AI infrastructure in the US over the next 4 years. This reflects intensifying AI technology competition and is expected to lead to increased investment by related companies.
Healthcare
The American Medical Association (AMA) announced new regulations for telemedicine prescriptions. The regulations include expanding the ability to prescribe buprenorphine for opioid use disorder (OUD) treatment. This is expected to contribute to telemedicine market expansion and improved access to opioid addiction treatment. Hundreds of medical organizations urged President Trump to protect Medicaid. They expressed concerns that reduced Medicaid support would hinder access to medical services and negatively impact hospital finances. The Federal Trade Commission (FTC) released a report on the impact of Pharmacy Benefit Managers (PBMs) on drug prices. The FTC pointed out that PBMs are using their superior position in negotiations with pharmaceutical companies to raise drug prices and increase consumer burden.
Finance
Several companies announced Q3 2025 earnings. Major companies' performance changes are as follows:
Company | Revenue Change | Operating Profit Change |
Cyient | 5.76% increase | 16.92% decrease |
Ultratech Cement | 2.71% increase | 17.3% decrease |
Thyrocare Technologies | 23.14% increase | 24.5% increase |
United Spirits | 11.06% increase | 4.34% decrease |
Coforge | 42.82% increase | 9.45% decrease |
India's Enforcement Directorate (ED) is investigating 8 payment gateways including Paytm and RazorPay for cryptocurrency fraud allegations. This suggests the possibility of strengthened cryptocurrency market regulations.
Energy
President Trump hinted at increasing oil production, working to lower oil prices. This is interpreted as an intention to increase oil production and stabilize oil prices through negotiations with OPEC. Shale industry officials claimed Wall Street would obstruct Trump's plans to increase US oil production. They predicted that shale oil production expansion would be difficult due to Wall Street's reduced investment and strengthened regulations. Romania introduced a Contract for Difference (CfD) system to expand renewable energy generation. This is a policy to guarantee stable revenue for renewable energy generators and attract investment. The Battery Energy Storage System (BESS) market is growing rapidly in Poland. The Polish government is expanding subsidy support policies for BESS construction, which is expected to contribute to energy storage market growth.
Retail/Consumer Goods
Major consumer trends for 2025 are expected to be health management plans, wise wallets, eco-friendliness, filtered focus, and AI ambivalence. 'Healthspan Plan' reflects increased interest in health and wellbeing, expected to lead to increased demand for health supplements, exercise equipment, and healthcare services. 'Wise Wallet' indicates consumers becoming price-sensitive and seeking value consumption amid economic uncertainty. Retail sales during the 2025 holiday shopping season showed strength compared to 2023 as discounts and promotions drove transactions. This trend was led by continued growth in online shopping and increased consumer use of price comparison and discount events. Wells Fargo economist Michael Swanson analyzed that consumers have spending power for seafood despite inflation concerns.
Trump Economic Policy Analysis
In his WEF speech, President Trump urged the Fed to cut interest rates and demanded OPEC lower oil prices. He also signed executive orders on cryptocurrency and AI, showing active economic policy intent. While these policies may positively impact markets in the short term, they could lead to side effects in the long term such as increased inflationary pressure from rate cuts, intensified trade friction, and increased government debt.
Economic Events and Geopolitical Risks
There are no major economic events scheduled for January 24. Geopolitical risks include the Ukraine war and US-China tensions. Investment decisions should be made carefully considering these risk factors.
Report Summary and Conclusion
On January 24, 2025, US markets continued strong gains with the S&P 500 index reaching an all-time high. Healthcare and energy sectors showed strength, and European and Asian markets also showed positive trends. While Trump administration's active economic policies may act as positive factors for markets in the short term, risk factors need to be carefully evaluated from a long-term perspective. Investors should establish investment strategies while paying attention to interest rate hikes, trade environment changes, and geopolitical risks. It is particularly important to focus on growth potential in healthcare, energy, and luxury consumer goods sectors, and manage risks through portfolio diversification, currency hedging, and defensive stock investment.
Disclaimer: This report is prepared for investment reference and is not investment advice or recommendation. Investment decisions should be made based on the investor's own judgment, and the investor is responsible for investment results.
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