Equity markets continued a winning streak that began in late October 2023, fueled by a reduced sense of economic uncertainty.
The Federal Reserve’s key inflation metric, the Personal Consumption Expenditure price index, remained stable in January, assuaging concerns of a rapid uptick.
The Nasdaq 100, represented by Invesco QQQ Trust (QQQ), surged past 18,300 points, hitting an all-time high. Similarly, the S&P 500, tracked by SPDR S&P 500 ETF Trust (SPY), broke through the 5,100 mark, also achieving record levels.
Following the corporate earnings season, 73% of S&P 500 companies exceeded earnings-per-share forecasts, while 64% outperformed revenue estimates.
Bitcoin (BTC/USD) captured attention once again as it crossed the $60,000 threshold, showcasing its best performance since March 2023.
NYCB Stock Plummets
New York Community Bancorp’s (NYCB) shares plummeted by over 20% as the company revealed a significant weakness in its internal controls related to loan reviews, compounded by the departure of its CEO.
Musk Sues OpenAI
Elon Musk filed a lawsuit against Sam Altman and OpenAI, alleging a shift in focus towards profit-making for Microsoft (MSFT), diverging from their initial commitment to open-source development in Artificial General Intelligence.
Bitcoin ETFs Surge
Bitcoin ETFs experienced a record influx of $676.8 million in a single day, with notable funds like iShares Bitcoin Trust (IBIT) attracting significant interest. The possibility of Morgan Stanley joining this trend underscores growing confidence and acceptance of Bitcoin in the investment market.
February’s Standout ETFs
February witnessed a substantial $40 billion investment across 10 ETFs, spanning equities, Treasury bonds, and Bitcoin.
Bubble Debate Insights
Renowned investor Ray Dalio weighed in on the stock market bubble discussion, expressing optimism due to key U.S. market indicators pointing to a mid-range status. While acknowledging elevated valuations in certain sectors, Dalio refrained from labeling it a bubble but cautioned that a downturn could occur if advancements in artificial intelligence fall short of expectations.
Apple Conviction Dropped
Goldman Sachs removed Apple Inc. (AAPL) from its ‘conviction list’ but retained a ‘Buy’ rating on the stock. Despite recent product releases and rumors about Apple’s electric vehicle project discontinuation, the firm sees better opportunities elsewhere, leading to a slight dip in Apple’s stock price.
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