Markets split as industrials hit new peaks while tech and autos tumble
Global markets have shown sharp contrasts in early trading this year. While some indices and sectors reached new highs, others faced steep declines. Investors have seen record peaks in major benchmarks alongside heavy losses in specific industries.
The year began with fresh all-time highs for Germany's DAX, Austria's ATX, and the U.S. S&P 500. Industrial stocks led gains on both sides of the Atlantic, with Caterpillar, Honeywell, and Chevron hitting record levels as the Dow Jones' top performers.
In Europe, however, the picture was mixed. Austrian firm AT&S approached its 2022 peak, but Voestalpine and SBO suffered notable drops. Bayer, despite a strong recovery, remains two-thirds below its 2015 high, before its Monsanto takeover.
Tech and software sectors struggled. The NYSE FANG+ index fell 16 percent from last year's peak, while Microsoft and Palantir contributed to a 30 percent drop in the software-focused IGV index. SAP now trades 40 percent under its 2023 high.
Automakers also faced steep losses. Stellantis lost three-quarters of its peak value, and Porsche shed two-thirds. Meanwhile, precious metals retreated after early-year records, with gold down 9 percent and silver dropping 30 percent.
The market split highlights shifting investor confidence. Industrial and commodity-linked stocks have thrived, while tech, software, and auto sectors have underperformed. The divergence leaves traders watching closely for further signals in the coming months.
