The global stock markets continue to achieve new milestones, with the US stock futures indicating a steady opening after recent surges driven by semiconductor companies. The Nasdaq 100's (QQQ) significant gains were primarily fueled by the chipmaker sector, notably after Taiwan's TSMC (TSM) reached a new all-time high. This surge in semiconductor stocks comes amidst growing optimism about the potential of AI technology. The Japanese Nikkei 225 index also broke records, surpassing the 40,000-point mark for the first time, reflecting the broader bullish sentiment in global markets.
Amidst these record-setting trends, financial analysts and strategists have been revising their projections for major stock indexes. Bank of America's (BAC) Savita Subramanian and Goldman Sachs' (GS) David Kostin have both raised their targets for the S&P 500 (SPY), citing the robustness of the current bull market and the solid fundamentals underpinning the tech-driven rally. Despite this, bond traders continue to favor US debt, betting on an eventual economic slowdown. This preference remains even as the bond market has seen significant losses since 2021, erasing extra gains over cash investments.
Market Overview:
-US stock futures muted after chipmaker-driven surge for Nasdaq 100 on Friday.
-S&P 500 notches 15th record close of the year.
-Japan's Nikkei 225 surpasses 40,000 for the first time.
Key Points:
-Strategists raise S&P 500 targets due to record run but warn against euphoria.
-Strong corporate earnings support market sentiment.
-Bitcoin nears record high, benefiting from demand for spot ETFs.
-Chinese Premier skips press conference, no major stimulus expected at NPC.
Looking Ahead:
-China's National People's Congress on Tuesday.
-Fed commentary and policy outlook.
Corporate earnings have played a significant role in bolstering market confidence, with a majority of S&P 500 companies surpassing expectations. Nvidia (NVDA), a leading chipmaker, has been central to the current bull run, although some analysts caution against overly optimistic views on its future growth potential. Conversely, Apple (AAPL) has seen a slight increase in bearish sentiment, with Goldman Sachs removing the tech giant from its conviction list. These developments indicate a dynamic and evolving market landscape, where investor sentiments and expectations are continuously adjusting.
The cryptocurrency market, particularly Bitcoin (GBTC), has also witnessed a significant rally, reaching prices above $65,000. The enthusiasm for Bitcoin has been fueled by strong demand for newly launched spot exchange-traded funds (ETFs), with products from BlackRock and Fidelity seeing substantial inflows. This rally in digital assets reflects a waning resistance to cryptocurrencies on Wall Street, highlighting the changing attitudes of traditional financial institutions towards this emerging asset class.
