What’s News in Markets: A Monster Half, Wegovy Bump, Nike Stumbles
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Hey, listeners, it's Saturday, June 29th. I'm Francesca Fontana for The Wall Street Journal, and this is What's News in Markets, our look at the biggest stock moves of the week and the news that drove them. Let's get to it.
How big was the stock market rally in the first half of 2024?
The first half of 2024 is coming to an end, and it really was a monster first half for the stock market. Going into this year, investors had two big bets, one on the AI buzz that started last year, and one on the Federal Reserve lowering interest rates at a good clip, maybe half a dozen times. The bet on AI was right on the money, as we've seen from the bonkers demand for Nvidia chips and that company's meteoric rise in valuation. The interest rate bet, though, got dampened a little bit, as the Fed has held off on rate cuts so far. But all in all, Nvidia has helped power the S&P 500 roughly 15% higher this year, in spite of all the central bank business. The major indexes ended the first half of 2024 higher.
Why did Nvidia and AI drive big gains for the S&P 500?
The Nasdaq gained 18%, the S&P 500 rose 14%, and the Dow Jones Industrial Average added 4%.
Mid-year is also a pretty good time to reflect and check in on the buzzy stocks we've seen this year, like Novo Nordisk, which is the Danish pharma company behind hugely popular drugs that are being used for weight loss, like Ozempic. Yes, the jingle is already in my head. That wild success can also be seen in its stock price. The company's U.S.-listed shares are up more than 80% so far this year. Novo Nordisk also makes a similar drug, Wagovi, and that one got a big win this week in China. The company will now be able to sell Wegovy in the country, aka the world's second largest economy. Good thing for the company, too, because demand for these kinds of drugs is surging there. And it's already been selling Ozempic in China since it was approved to treat diabetes there in 2021.
No launch date was announced along with the news on Tuesday, and neither were any details of how much of the drug will be available. And that brings up the other side of the coin. On one side is the huge popularity of these treatments. The other side is shortages.
How did Novo Nordisk’s Wegovy approval in China affect its stock and supply?
Novo Nordisk has had to restrict Wigovi supply to make sure current patients still have access, while the company scrambles to ramp up production. U.S.-listed shares of Novo Nordisk gained about 3% Tuesday, but ended the week only slightly higher.
Next up, another tech giant crossed another big milestone this week. That was Amazon, which on Wednesday became the fifth U.S. company to cross $2 trillion in market cap. And Amazon's got some good company in the $2 trillion club. Google's parent company Alphabet, Apple, Microsoft, and Nvidia. They're some of the usual suspects when we think about big tech. The stock closed up about 4% Wednesday, but how about the rest of the week? Amazon shares gained about 2% Thursday and fell 2.3% Friday. All that's to say, Amazon's market cap is still over $2 trillion. Now let's take a look at a company from my beloved home state of Oregon. Let's talk Nike.
What milestone did Amazon hit and how did its shares perform across the week?
The sneaker maker stumbled in its latest quarter, posting lower quarterly revenue on Thursday thanks to a significant drop in footwear sales in North America. The company's long been a mainstay for runners. As a University of Oregon grad, I've heard the story of UO track coach slash Nike co-founder Bill Bowerman and the waffle iron prototypes of Nike's running shoes many, many times. But it's been losing ground in that market after diverting its focus elsewhere in recent years, leaving an opening for competitors like Hoka. Investors weren't too pleased by the results, and Nike's share sank 20% Friday. Now, the company's hoping to get a boost from its new line of shoes during the Paris Olympics, so we'll have to watch and see whether Nike can put its best foot forward.
And now you know what's news in markets this week.
Why did Nike’s revenue fall and what does the 20% stock drop mean for its turnaround?
You can read about more stocks that moved on the week's news in The Score, my column in the Wall Street Journal's exchange section. I'm Francesca Fontana. Have a great weekend and see you next Saturday.
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Chapters
6 chapters
1
What is the main topic discussed in this episode?
0:01–0:42
2
How big was the stock market rally in the first half of 2024?
0:42–1:27
3
Why did Nvidia and AI drive big gains for the S&P 500?
1:27–2:40
4
How did Novo Nordisk’s Wegovy approval in China affect its stock and supply?
2:40–3:46
5
What milestone did Amazon hit and how did its shares perform across the week?
3:46–4:37
6
Why did Nike’s revenue fall and what does the 20% stock drop mean for its turnaround?
4:37–5:25
Speakers
2 identifiedMore from WSJ Your Money Briefing
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