The Q Review: January 2025
Welcome to the Q Review, a monthly report from Qtrade Direct Investing®. Each month, we'll share great information about what's been happening in the markets, what our Qtraders are doing, and what's new with us!
The year began with a dynamic start as markets adjusted to shifting economic policies, evolving global trade dynamics, and rapid advancements in technology. Central banks took different approaches on interest rates, AI disruptions sparked volatility in the tech sector, and renewed tariff concerns added uncertainty to the outlook.
As these developments unfold, we break down the key trends shaping the markets and what they could mean for investors moving forward
The emergence of DeepSeek, a Chinese AI competitor, sent shockwaves through the tech sector, raising concerns about semiconductor demand and power consumption. While AI remains a high-growth industry, increased competition could lead to shifts in market dynamics. Investors should watch for regulatory responses and potential impacts on major tech players.
Central Banks take different paths
The Bank of Canada and the European Central Bank cut interest rates by 0.25% in an effort to stimulate economic growth, while the U.S. Federal Reserve kept rates steady at 4.25%–4.50%. This divergence may lead to increased market volatility, with currency fluctuations impacting global trade and investment strategies.
U.S. earnings season: a mixed start
Early 2025 earnings reports revealed strong financial and energy sector performance, but tech firms faced pressure. Nvidia saw an 18% drop in stock price following DeepSeek’s emergence, highlighting potential risks for AI-related investments. With earnings expectations high, investors should stay vigilant as companies report full quarterly results.
Canada braces for tariff risks
President Trump’s renewed threats of a 25% tariff on Canadian imports have heightened economic uncertainty. Key industries such as automotive and energy could face disruptions, and the Canadian dollar has weakened in response. Investors should consider how trade policies may impact market sectors and overall economic growth.
Most bought and sold securities in January on Qtrade Direct Investing
Most purchased securities on Qtrade Direct Investing – January 2024
1. ISHARES CORE EQUITIES ETF PORTFOLIO
2. NVIDIA CORP
3. VANGUARD S&P 500 INDEX ETF
4. ISHARES PREMIUM MONEY MARKET ETF
5. ISHARES CORE GROWTH ETF PORTFOLIO
6. TELUS CORP
7. GLOBAL X S&P 500 INDEX ETF
8. BCE INC NEW
9. TORONTO DOMINION BANK
10. ISHARES CDN FIN MONTHLY UN ETF
Most sold securities on Qtrade Direct Investing – January 2024
1. NVIDIA CORP
2. TORONTO DOMINION BANK
3. ENBRIDGE INC
4. ISHARES PREMIUM MONEY MARKET ETF
5. BCE INC NEW
6. TELUS CORP
7. TESLA INC
8. BANK OF NOVA SCOTIA
9. BNS INVESTMENT SAVINGS ACCOUNT SR F –NL
10. CANADIAN NATURAL RESOURCES LTF
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The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is for informational and educational purposes, and it is not intended to provide specific advice including, without limitation, investment, financial, tax or similar matters.