On Wall Street, the Dow Jones index strengthened by 2.3 percent last week, to 49.504 points, while the S&P 500 rose by 1.6 percent, to 6.966 points, and the Nasdaq index by 1.9 percent, to 23.671 points.
The record levels of the Dow Jones and the S&P 500 are mostly attributed to rising share prices in the mining, energy, industrial, and other sectors that have lagged behind the technology sector in recent years.
Share prices of arms manufacturers also rose sharply after the United States (U.S.) President Donald Trump stated that the U.S. military budget for 2027 should amount to 1.500 billion dollars, while this year it stands at around 900 billion dollars.
Share prices in the technology sector also rose, but fluctuated significantly, sharply falling one day and rising strongly the next.
In recent months, share prices in the technology sector have fluctuated considerably as investors fear that the sector is overvalued after years of growth driven by the development of artificial intelligence (AI).
While some analysts believe that the technology sector will also lead the markets in growth this year, others warn of possible instability due to investors’ concerns about massive investments and debt levels.
“The AI sector remains attractive, but there will be winners and losers. It has become a ‘show me’ sector. Show me how you will monetize investments and what the return will be on the investments you have made in development,” said Art Hogan, a strategist at B. Riley Wealth.
In the first week of the new year, there was not much news, and investors paid the most attention to the employment report.
In the U.S., the number of employed persons increased by 50 thousand in December, less than in the previous month and less than expected. However, the unemployment rate fell to 4.4 percent, showing that the situation on the labor market is not so bad.
As a result, these data did not significantly affect expectations regarding the interest rates of the U.S. central bank.
On European stock exchanges as well, share prices rose last week. London’s FTSE index strengthened by 1.7 percent, to 10.124 points, while Frankfurt’s DAX jumped by 2.9 percent, to 25.261 points, and Paris’s CAC by 2.0 percent, to 8.362 points.
At the same time, many European stock indices reached record levels, including the STOXX 600 index of leading European shares.
Thanks to the rise of the world’s largest stock markets, the MSCI index of all world stock exchanges reached a record level of 1.034 points last week.
