Stoxx 600 Hits Record High Amid Novo Nordisk's Wegovy Pill Approval and Strong U.S. GDP

On December 23, 2025, the pan-European Stoxx 600 index reached new intra-day and closing record highs, fueled by two key catalysts: Novo Nordisk’s U.S. FDA approval of the oral form of its weight-loss drug Wegovy and investor anticipation of the U.S. Q3 GDP data release [2][3][4][7]. The GDP print later that day exceeded consensus expectations, registering 4.3% annualized growth (vs. 3.3% forecast), reinforcing market bullishness and pushing major U.S. indices (S&P 500, NASDAQ Composite, Dow Jones) to record closes [1][2]. Novo Nordisk’s U.S.-listed shares (NVO) surged 8% midday following the FDA approval—marking the first oral GLP-1 obesity treatment in the U.S.—but closed down 2.01% at $51.61, likely due to profit-taking after the sharp intra-day move [4][5][6]. The company’s Danish-listed shares (NOVOb.CO) also contributed to the Stoxx 600’s gains, with the healthcare sector leading the index’s 0.34% closing increase [2]. As of December 24, the Stoxx 600 is up ~16% year-to-date, on track for its strongest performance since 2021 [3].

1. Novo Nordisk’s Dual Market Reaction
   : The oral Wegovy approval expands Novo Nordisk’s addressable market in the rapidly growing GLP-1 sector, targeting patients who prefer oral medications over injections [4][7]. However, the stock’s pullback highlights investor caution, especially given Novo Nordisk’s 38% year-to-date decline (as of December 23) due to prior market share losses, supply shortages, and executive changes [6].
2. GDP Impact on Fed Policy
   : The stronger-than-expected U.S. GDP data has reduced market expectations for early 2026 Fed rate cuts [1][2], which may temper future gains in interest-rate-sensitive sectors like technology and real estate.
3. European Equity Confidence and Overextension
   : The Stoxx 600’s record high reflects growing confidence in European equities, supported by easing interest rates and Germany’s fiscal spending [3]. However, analysts warn of potential overextension after the recent sharp rally [3].

• Market Overextension
  : Fairlead Strategies’ Katie Stockton warned of a potential imminent pullback due to rapid recent gains [1].
• GLP-1 Sector Competition
  : Eli Lilly (LLY) and other rivals have oral GLP-1 candidates in the pipeline, which could limit Novo Nordisk’s market share expansion [7].
• Interest Rate Risks
  : Delayed Fed rate cuts may increase borrowing costs for companies and consumers [1][2].
• Supply Chain Constraints
  : Novo Nordisk has a history of supply shortages, and ensuring sufficient production for the new oral Wegovy is critical [6].

• Novo Nordisk’s Market Share Growth
  : The oral Wegovy could attract new patients, driving revenue growth [4][7].
• Broader GLP-1 Sector Momentum
  : Smaller obesity drug developers like Viking Therapeutics (VKTX) and Structure Therapeutics (GPCR) saw gains of 2% and 6%, respectively, indicating positive sector sentiment [4].

• Stoxx 600
  : Closed 0.34% higher on December 23, 2025 (record high), up ~16% YTD [3].
• Novo Nordisk (NVO)
  : Midday surge of 8% followed by 2.01% closing decline ($51.61), down 38% YTD [4][6].
• U.S. Q3 GDP
  : 4.3% annualized growth (above 3.3% consensus) [1][2].
• Competitors
  : Eli Lilly (LLY) -1%, Viking Therapeutics (VKTX) +2%, Structure Therapeutics (GPCR) +6% [4][6].
• U.S. Indices
  : S&P 500 (+0.5% to 6,909.79), NASDAQ Composite, Dow Jones Industrial Average all closed at record highs [1][2].