Notable Developments at the Opening of the 2025 Market

What You Need to Know Before the Market Opens

As we approach 2025, a dynamic period is unfolding in the markets. Analyzing the U.S. stock markets, it's worth noting that the S&P 500 index has reached record levels at 6,930 points but has experienced limited losses due to profit-taking. The Dow Jones and Nasdaq, on the other hand, have recorded declines of around 0.4-0.5%. Overall for the year, the Dow Jones has over 14% return, while Nasdaq has more than 20% return.

Investor's Favorite: Fed Meeting Minutes

The minutes from the Federal Reserve's December meeting are a key topic for the markets. The Fed has reduced interest rates by a total of 75 basis points over the last three meetings, bringing the policy rate to a range of 3.50-3.75%. However, ongoing disagreements during this process have drawn attention. President Donald Trump has threatened to sue Jerome Powell for “gross negligence,” which adds uncertainty to the markets.

Company News and Commodity Market Developments

Intel's $5 billion stock sale agreement with Nvidia has attracted attention, while Boeing's high-value defense contract with Israel has also piqued investors' interest. In the commodity markets, profit realizations after record levels in precious metals have led to sharp pullbacks in silver and platinum prices. However, long-term assessments suggest that geopolitical risks, central bank purchases, and a weakening dollar have not disrupted the main trend of precious metals.

Global Market Observations

Oil prices are experiencing fluctuations due to the Russia-Ukraine tensions and risks in the Middle East. The evolution of geopolitical strategies continues to impact the direction of markets.

On the Istanbul Stock Exchange front, a cautious outlook prevails. The BIST 100 index declined to the level of 11,150, closing the day with a loss of over 1%. Banking stocks remained more resilient during the day, while industrial stocks experienced significant selling pressure.

Lastly, on the currency side, the upward movement of the dollar continues. The dollar/TL is attempting to settle above the level of 42.90. Despite rising costs, the TL's differentiation from other weak currencies can be considered a notable development in the markets.