In Markets "In a Nutshell"

Markets “In a Nutshell” for February 24, 2025

Investment Week at a Glance

Stocks finished lower for the week. The Dow Jones Industrial Average fell 2.5%, the S&P 500 was down 1.7%, and the NASDAQ fell 2.5%. Foreign stocks (MSCI EAFE) were also down, falling 0.4%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.43%.  (Data source: Wall Street Journal)

Market Gains Continue to Broaden

In 2024, the Magnificent 7 companies led the market higher returning an average of over 48%. In 2025, the opposite is true with the Magnificent 7 trailing the S&P 500, NASDAQ, & Dow Jones. The Magnificent 7 has only gained 1% in 2025 after being up over 150% in 2023 & 2024. Technology as a whole has trailed the market as only one sector has performed worse this year. Earnings growth is also expected to be more balanced this year which supports a broader move higher in equities rather than a handful of mega companies.

European Markets Start 2025 Strong

European equities have led the way in 2025 as the EuroStoxx 50 index is up over 13% for the year. The S&P 500 is up 4% in comparison, a stark difference from last year where the S&P 500 gained 22% more than the EuroStoxx 50. One reason for the outperformance is that the dollar has slightly weakened in February which is positive for foreign stocks. Another reason is the hopes of a settlement in the Russia-Ukraine war as discussions of a resolution have picked up recently. Investors will pay close attention to see if this is a short-lived rally for foreign markets or something that is sustainable in the long term.

UnitedHealth Group Falls on DOJ Probe

UnitedHealthcare, a subsidiary of UnitedHealth Group, is being investigated by the DOJ on its Medicare billing practices and the stock moved lower by 7% on the news. The stock has had a rough go the past 3 months falling more than 20%. UnitedHealthcare CEO Brian Thompson was shot and killed in December which sparked questions about the company and healthcare insurance as a whole. The company also dealt with a cyber-attack about a year ago and has so far paid out more than $3 billion to providers affected. Investors will watch closely to see if the largest healthcare company will be able to turn around its performance in the coming months. (CNBC)

Quiz:

How much does $1 equal in Euros. (Scroll Down for Answer)

  1.    €0.95
  2.    €1.03
  3.    €1.10
  4.    €1.20

 

 

 

 

 

Answer below.

 

 

Have a Great Week!

 

 

 

 

 

 

 

Answer:

  1.   €0.95. The $ recently peaked at the beginning of February but has slowly fallen back helping boost foreign markets.

 

 

 

 

 

If you have any questions regarding your account with MGO, please call us at (216) 771-4242 or send an email to us at ask@mgo-inc.com

Investing involves risk, including the possible loss of principal. The information contained herein has been prepared solely for informational purposes. Nothing contained herein should be construed as a recommendation to either buy or sell any security or economic sector, or implement any strategy discussed. Please consult with your financial advisor, accountant, and/or attorney before acting on this information. MGO-Inc is a DBA of OneSeven.  OneSeven is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC).  Registration with the SEC does not imply a certain level of skill or training.  Investment Products are Not FDIC Insured, Offer No Bank Guarantee, and May Lose Value.