A Big Move In Bonds

One of the key themes we discussed last year was the underperformance of Chinese stocks. While India and other emerging markets rallied sharply (along with the rest of the world), China’s stock market was stuck in the mud because of slowing growth, weak consumer spending, a property market crisis, and geopolitical tensions. ⚠️

Unfortunately for emerging market investors, none of those core issues have improved in 2024, leading its stock market to fall even further to start the year. 😬

Nvidia earnings re-ignited the animal spirits in the market, causing the stock and major indexes to reach several new milestones. Let’s check’em out. 👇

Firstly, a 16% rise in the stock today caused its market cap to rise $277 billion, the largest one-day increase of any stock in history. Secondly, today’s move put it firmly ahead of Google and Amazon as the fourth-largest stock in the world (Saudi Aramco not pictured below). It also moved it a stone’s throw away from $2 trillion. 🤩

Semiconductor stocks remain the focus of investors and traders, with Nvidia and Super Micro Computer pushing to all-time highs. The industry is starting the week with several analyst upgrades as Wall Street continues to chase these companies higher. 🌠

Despite the growing concern that the fundamentals may not fully support these short-term surges in price, the path of least resistance remains higher.