Last week, stock prices rose on global stock markets, recovering some of the losses from the previous week, mainly due to the usual ‘touching up’ of portfolios at the end of the year.
Dow Jones strengthened by 0.4 percent last week, to 42,992 points, while S&P 500 rose by 0.7 percent, to 5,970 points, and Nasdaq index by 0.75 percent, to 19,722 points.
Thus, the index recovered some of the losses from the previous week, when they fell nearly two percent after the message from the US central bank that it plans to slow the pace of interest rate cuts next year.
Since there were no news last week, shortened due to the Christmas holidays, that could affect the market, movements on the stock exchanges largely depended on the ‘touching up’ of portfolios as investors buy those stocks that have risen the most during the year.
Historical data shows that since 1969, in the last five working days of the year and the first two working days of the new year, the S&P 500 has averaged a rise of 1.3 percent, and this period is popularly called ‘Santa Claus Rally’.
Since the beginning of the year, the Dow Jones has risen about 13 percent, the S&P 500 about 25, and the Nasdaq index about 30 percent.
Such strong growth is attributed to the euphoria surrounding the development of artificial intelligence, the Fed’s interest rate cuts, and Donald Trump’s victory in the US presidential elections as it is expected that his policies will contribute to economic growth and deregulation in several areas.
Stock prices also rose on European stock markets last week. The London FTSE index strengthened by 0.8 percent, to 8,149 points, while the Frankfurt DAX rose by 0.5 percent, to 19,984 points, and the Paris CAC by 1.1 percent, to 7,355 points.
