Global markets split as indices hit new peaks while tech and crypto tumble
Global markets have shown sharp contrasts in early trading this year. While major indices like the DAX, ATX, and S&P 500 climbed to fresh all-time highs, other sectors—from technology to commodities—faced steep declines. Investors have seen dramatic shifts, with some companies thriving and others struggling to recover from last year's peaks.
The new year began with strong gains for key stock indices. Germany's DAX, Austria's ATX, and the US S&P 500 all reached record levels. Meanwhile, three Dow Jones standouts—Caterpillar, Honeywell, and Chevron—pushed to new highs, leading the index's performance.
Technology and software stocks, however, told a different story. The NYSE FANG+ index, tracking major technology firms, dropped 16 percent from its 2023 peak. Software-focused companies fared worse: the IGV index fell 30 percent, with Oracle and Intuit losing over half their value. Microsoft declined 26 percent, while Palantir lost 35 percent from its highs.
European technology firms also struggled. SAP, Germany's largest technology company, traded 40 percent below its 2023 peak after AI-driven growth expectations fell short. ASML, the Dutch semiconductor giant, saw a 40 percent drop due to US-China trade restrictions and delayed orders from China. In Austria, circuit board maker AT&S nearly recovered to its 2022 high but remained about 9 percent below it.
Automakers faced sharp losses too. Stellantis lost three-quarters of its peak value, and Porsche dropped two-thirds. Even commodities like gold and silver, which hit record highs earlier in the year, retreated—gold fell 9 percent, while silver plunged 30 percent.
Cryptocurrencies continued their slump. Bitcoin traded 46 percent below its 2023 peak, with Ethereum and Solana suffering even steeper declines.
The market split has left investors navigating a mixed landscape. While some sectors and companies reached new heights, others—particularly in technology, software, and crypto—remain far below their previous peaks. The gap between Europe's outperforming stocks and struggling US counterparts adds to the uneven recovery across global markets.
