Daily Update — May 9, 2025
Equal Weight Performance; Shippers in the Red Sea; and Renewables for Energy Security
Today is Friday, May 9, 2025, and here’s your curated selection of Essential Intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.
Economy
Examining Equal Weight Performance in Challenging Markets
How have the S&P 500 Equal Weight Index’s exposures influenced its performance over time and why could that matter in the current climate? Anu Ganti, head of US index investment strategy at S&P Dow Jones Indices, and Nick Kalivas, head of factor and core equity product strategy at Invesco, explore the growing ecosystem and key performance drivers of the S&P 500 Equal Weight Index.
The S&P 500 Equal Weight Index includes the same constituents as the capitalization-weighted S&P 500 but uses a fixed weight of 0.2% for each company.
Global Trade
Shippers unlikely to return quickly to Red Sea after ceasefire
Major shipping companies are exercising caution in resuming transits through the Red Sea while awaiting the outcome of a ceasefire announced May 6 and its potential to end Houthi attacks. This ceasefire involves an agreement between the US and relevant authorities in Yemen to halt mutual attacks, including those on US vessels in the Red Sea and Bab al-Mandab Strait. The agreement aims to protect "freedom of navigation" and ensure the uninterrupted flow of international commercial shipping, the Oman News Agency reported.
In light of these developments, industry group BIMCO advised shipowners to continue their current risk management measures while they assess the situation. Container shipping companies such as Maersk and Hapag-Lloyd are also taking a wait-and-see approach. Maersk refrained from commenting on its plans until after its May 8 earnings report, while Hapag-Lloyd said it needs to continue monitoring the security situation before deciding to return to the Red Sea.
Energy Transition & Sustainability
Critical minerals and renewables: A new era of energy security
In this episode of the “Energy Evolution” podcast, host Eklavya Gupte speaks with Tim Gould, chief energy economist at the International Energy Agency. Gould shared insights on how the expansion of renewables, coupled with geopolitics and evolving economic policies, is reshaping energy security.
This interview was recorded at the Summit on the Future of Energy Security in London, where representatives from over 60 governments and several energy companies convened to collaborate on the key issues facing energy markets.
In case you missed it
- Greek banks are expected to proceed with their M&A plans even as US tariffs disrupt markets.
- Market sentiment improved last week, with the S&P 500 rising over all five days, despite news of US real GDP declining 0.3% year over year in the first quarter.
- India has sufficient levels of oil as refiners are holding adequate stocks, supplementing volumes in strategic reserves, ensuring domestic markets are well supplied during geopolitical turbulence.
Upcoming events
- State of the Market: Mining Q1'25 |May 14 (Webinar)
- EU/US Tariffs Showdown: Consequences and Alternatives for the European Trade Landscape | May 14 (Webinar)
- The cybersecurity market in 2025: The Only Constant is Change | May 14 (Webinar)