Three years ago Constellation Energy was spun out of the utility Exelon, hived off as an unwanted company running nuclear power plants that might close. This past week, Constellation’s stock hit a record high, and it signed one of the power industry’s largest acquisitions. Constellation, the country’s biggest producer of nuclear power, agreed to buy the private-equity-owned Calpine, a major generator of natural gas-fired and geothermal power for $16.4 billion, plus debt. Shares rose 25% on Friday, and it was the second-best performer in the S&P 500 that day. It is part of a remarkable turnaround for Constellation, Calpine and other power producers, which have emerged from years of ho-hum electricity demand as the newly popular kids. Constellation’s stock has risen roughly 575% since the spinout. The industry’s glow is due in large part to the boom in demand for electricity-hungry artificial-intelligence computing. That trend has sent the wealthy tech sector on a desperate hunt for city-sized amounts of power for new data centers. Tech companies have preferred wind, solar or nuclear power because they avoid carbon emissions. But in practical terms, power demand is rising so quickly that companies can’t be picky. For now, sustainability commitments are taking a back seat to tech companies’ desire to rapidly build data centers, according to analysts.

The Swiss stock market drew the week to a close with falling stock prices. The SMI dropped by 1.1 per cent to 11,792 points, closing just above its low for the day. Of the 20 SMI stocks, there were 17 losers and 3 gainers. A total of 17.16 (previously: 19.11) million shares were traded. Among the individual stocks, insurers were under particular pressure. Shares in Zurich Insurance and Swiss Re decreased by 1.6 and 1.4 per cent respectively. Shares from the insurance sector were more in focus in view of the ongoing devastating fires in Los Angeles. Holcim shares declined by 1.5 per cent. The building materials group has set the personnel course for the upcoming spin-off of its North American business. The current Chairman of the Board of Directors, Jan Jenisch, is giving up his present position and will become President and CEO of the planned North American company, as Holcim revealed. Holcim shareholders are to elect Kim Fausing as Jenisch's successor at the Annual General Meeting on 14 May.

Europe
The European stock markets lost ground on Friday following the announcement of better-than-expected job creation and a fall in unemployment in the United States in December. The Stoxx Europe 600 index shed 0.8% to 511.5 points. In Paris, the CAC 40 and SBF 120 also slipped by 0.8%. The DAX 40 in Frankfurt was down 0.5% and the FTSE 100 in London lost 0.9%. Para-petroleum services specialist Viridien (+9%) confirmed on Thursday evening its cash generation target for 2025, after posting slightly higher results last year. The former CGG is targeting free cash flow of around $100 million for the current year, after generating around $50 million in cash in 2024, according to provisional figures. The group had aimed for a free cash flow of 30 million dollars in 2024. Aerospace and defence group Airbus (+0.6%) delivered 766 commercial aircraft in 2024, compared with 735 the previous year, representing a year-on-year increase of 4.2%. The aircraft manufacturer thus just missed its target of supplying around 770 aircraft last year. Nevertheless, Airbus exceeded the 755 deliveries expected by the FactSet consensus.

United States
Stock indexes slid on Friday. The Dow Jones Industrial Average dropped almost 700 points, or 1.6%. The S&P 500 fell 1.5% and the Nasdaq Composite closed 1.6% lower. On Thursday, U.S. stock markets were closed. The S&P 500 wiped out its 2025 gains as investors assessed a blockbuster jobs report that makes future interest-rate cuts seem less likely. New nonfarm payrolls data shows the economy added 256,000 jobs in December, blowing past consensus expectations of 155,000. The unemployment rate edged lower to 4.1%, when it had been expected to hold steady at 4.2%. The numbers are among the most scrutinised economic data in markets, in large part because they help shape expectations for monetary policy. Bond yields jumped following the report, lifting the dollar, while major stock indexes skidded. Traders now expect just one quarter-point cut from the Federal Reserve this year, LSEG data shows. The report painted a strong picture of the economy but let down traders who are eagerly awaiting lower borrowing costs. Meanwhile, investors were also considering the financial fallout from the devastating Los Angeles fires, with some insurance and utility stocks under pressure. Financials, real estate, and technology led losses. All three sectors are sensitive to interest rates. Insurance stocks dropped. The Los Angeles wildfires could be the costliest blaze in U.S. history, initial estimate suggest. Allstate lost 5.6%; other insurers such as Progressive and Travelers also dropped. Walgreens Boots Alliance soared by 27.5 per cent. The pharmacy chain exceeded expectations with its business figures for the first quarter. Delta Air Lines surged 9 per cent after reporting earnings figures above market expectations and an optimistic outlook. Following weak business figures, the shares of beer group Constellation Brands plummeted by 17.1 per cent.

Asia
In Tokyo, trading is paused at the start of the week due to public holidays, while in Hong Kong the HSI is down 1.3 per cent and the Shanghai Composite has shed 0.4 per cent. In Seoul, the Kospi dropped by 1 per cent and in Sydney, where trading has already ended, the index declined by 1.3 per cent. Shares in the oil sector are posting gains after strong U.S. labour market data boosted oil prices. Oil prices are currently rising by up to a further 2 per cent, with oil now as expensive as it was last in the summer of 2024. In Hong Kong, CNOOC rose by 2.1 per cent and PetroChina by 2.0 per cent. In Sydney, Woodside saw a similarly sharp rise. Insignia Financial gained 2.7 per cent in Sydney, driven by a bidding war for the company involving Bain Capital and CC Capital Partners.

Bonds
Long-dated U.S. government debt yields finished at their highest levels in over a year on Friday after December payrolls data came in stronger than expected, reducing market expectations for an interest-rate cut from the Federal Reserve before July. The 10-year Treasury note yield advanced by nearly 8 basis points (0.08 percentage points) to 4.76%. The 2-year Treasury note yield jumped by 12 basis points to 4.39%.

Analysis
Jefferies raises Sika target to CHF 299 (297) - Buy
Berenberg upgrades Richemont target to CHF 150 (140) - Hold
Exane lifts Swiss Re target to CHF 144 (131)/Neutral - Trader

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