Market Highlights for the Second Week of 2025

Happy New Year!

Dear Traders,

The new year is officially underway, and while the first week of 2025 offered a slower pace with quiet market activity as traders and institutional players remained in holiday mode, the second trading week is already showing signs of increased momentum. With the holiday season behind us, all eyes are now on key trends that are carrying over from 2024, setting the stage for what could be an exciting start to the year.

Bitcoin has reclaimed its position just above the pivotal $100,000 mark, reigniting discussions about its potential trajectory in the months ahead.

Meanwhile, US equities are showing resilience, with notable gains in tech stocks. Nvidia, in particular, has kicked off the year with strong momentum, signaling that the demand for AI and semiconductor technology continues to drive investor confidence. As the markets shake off the holiday hangover, the coming week will be crucial in setting the tone for the early part of 2025.

Key Economic Events to Watch This Week

Tuesday

• Europe: Consumer Price Index

Wednesday

• Germany: Retail Sales
• US: ADP Employment Change
• US: Initial Jobless Claims
• US: Crude Oil Inventories
• US: FOMC Meeting Minutes

Thursday

• US Markets Closed

Friday

• US: Non-Farm Payrolls (NFP)

Short Trading Week for the US

US markets will remain closed on Thursday in observance of a public holiday honoring the recent passing of former President Jimmy Carter, who passed away at the remarkable age of 100. This marks a shortened trading week, giving investors and traders one less day to respond to market developments. As a result, we may see increased activity on Wednesday and Friday as market participants adjust their strategies to the compressed schedule.

Spotlight on Non-Farm Payrolls

The key event this week is Friday’s Non-Farm Payrolls (NFP) report, which will provide critical insights into the health of the US labor market. As one of the most closely watched economic indicators, the NFP often sets the tone for market sentiment, influencing everything from equities to forex and bond markets. Traders will be paying particular attention to job creation figures, unemployment rates, and wage growth, as these components help shape expectations for Federal Reserve policy decisions. With the US economy navigating a delicate balance between growth and inflation, this report could trigger significant market moves, making it a must-watch for all market participants.

Chart of the Week: Nvidia

NVIDIA starts the year on a high note, maintaining levels near its previous all-time high. As always, remember: past performance is not indicative of future results.