Dec 29th, 2023 – After an important two-month rally, global stock markets are set to record their strongest performance since 2019, because investors are of the opinion that central banks have ceased their interest rate hikes and that they will start cutting rates in 2024. Demonstrative of this trend, the MSCI World Index has raised by 22% this year and 16% since late October. Bond prices are also rising, as investors are attracted by the current returns and know there is a high chance that money borrowing costs will be cut in 2024.
In the US., key stock indices reflect the market’s positive trajectory, with the S&P 500 boasting nearly a 25% increase, NASDAQ registering an impressive +44.74%, and the Dow Jones securing a solid 14% gain.
The rally is notably led by tech companies, particularly those in the Generative AI sector. Illustratively, NVIDIA and Google have exhibited stellar performances, with NVIDIA witnessing a remarkable 215% growth and Google achieving a noteworthy +50% performance.
But let’s now dive into today’s market movers, the most talked stocks in the last market day of 2023.
Portfolio holding NVIDIA (NVDA) (Purchased 0.2773 units @ $471.73) has announced its plans in order to launch a slower gaming chip in China, to be compliant with the U.S. export regulations. The chip will be available in January and will also have artificial-intelligence driven graphics. Finally NVIDIA has managed to comply with the U.S. export regulations, since 3 of their previous chips were blocked from sale, and this is the first China-focused chip they have launched since the implementation of export restrictions in China.
Albemarle, a chemicals company, experienced a 4% decline in its stock on Friday, ranking among the S&P 500’s underperformers. This seemed to be part of an extensive sell-off affecting stocks associated with lithium.
Author: Filippo Ferrero