In January 2025, the first month of the new U.S. administration brought a wave of policy announcements — and markets reacted. Using Sismo, we analyzed Russell 1000 stocks as of 31 January 2025, ranking them on three key metrics:
- 1-Month Total Return (with dividends reinvested)
- Analyst sentiment momentum (trend in recommendation changes)
- Interest rate sensitivity (impact of rate hikes on performance)
The overall market gained +3.8% on average, but sector performance varied sharply:
- Leaders: Banks, oil companies, construction & engineering
- Laggards: Household & personal products, food & beverage, real estate
Key Insights from the January 2025 Analysis
- Deregulation announcements lifted banking stocks.
- “Drill, Baby, Drill” rhetoric boosted Oil & Gas and mining.
- Food & Beverage struggled with high costs linked to adverse weather and the avian flu crisis.
- Tariff hikes weighed on autos and consumer goods.
- Despite political calls for lower rates, markets priced in stable or higher rates, with inflation risks rising due to tariff policies.
Why This Matters
This analysis demonstrates how Sismo helps investment teams understand the interaction between policy shifts, sector trends, and factor exposures. By combining macro-sensitive factors with sentiment and performance data, Sismo provides the clarity needed to adjust portfolios quickly.
