(CercleFinance.com) – And 15! Wall Street brilliantly completes the longest series of weekly increases in the last 52 years (it’s stratospheric) and ends at the zenith on the eve of the weekend, which constitutes a very positive indication in terms of ‘momentum’ (the main compass ‘algos’).
And operators feel perfectly ‘comfortable’ with this bullish rally, precisely because it shows no sign of fragility: at no time do they suppose that such perfection of the bullish ‘trend’ has nothing ‘natural and that the indices could be completely controlled, and any ‘pullback’ literally neutralized.
Commenting on these cascading records on the US indices (3 consecutive on the S&P500 and the Nasdaq-100, 2 for the Dow Jones, on February 7 and February), the managers qualify the perpetual upward movement as justified: 80% of the 300 companies who published revealed better than expected results, which is above the average of 75%.
Questioned – after the closing at the zenith of the day – on the fact that the market is highly valued, most of the managers replied that they would take advantage of the slightest ‘breath’ to strengthen their portfolios.
Lacking ‘stats’ to inspire Wall Street, Sam Altman, the boss of Open AI, is talking about fundraising of $7,000 billion (yes, seven thousand billion, that’s stratospheric) to carry out his development projects: he did not specify over what period the biggest call to the market in history and the industrial era should take place… it is in any case comparable to the quantity of money printed by Western central banks during the COVID period (2020/2021).
The main US indices – with the exception of the Dow Jones which crumbled by -0.15% – smashed new absolute records and not timidly since the S&P500 (+0.57%) climbed to contact 5,030 points (i.e. +1.4% weekly and more than +5% in 2024).
The Nasdaq-100 climbs +1% to 17,962 (+2.2% weekly, +6.85% since January 1 and +26% since October 30, 2023) and 18,000 is within reach from Monday.
The Nasdaq Composite soars by +1.2% towards 16,000 (+2.3% weekly and +6.5% since January 1, or +65% on an annual basis!) in the wake -obviously- of Nvidia with +3.6% and already +45% in 5 weeks (its capitalization jumps towards $1,800 billion, it’s stratospheric).
The other stars of the day were Nvidia’s rivals: Applied Materials with +6.9%, Lam Research and MongoDb with +5.5%, the founder KLA with +5.1%, without forgetting ASML +2.9%, Palo Alto +2.7%, Datadog +2.6%, NXP +2.5%, AMD and Intel +1.9%.
The titans of the rating, ‘GAFAM’, shone again with Microsoft +1.6%, Alphabet +2%, Amazon +2.7%.
The week which is ending has also revealed significant disparities in global growth, with the American economy displaying excellent health, far ahead of Europe and China which have a tendency, at best, to stagnate.
With the prospect of much more sustained activity than expected, a ‘soft landing’ in the United States in 2024 becomes almost improbable, the declarations of several members of the: it is not even certain that the FED ‘pivots’ next May if the labor market remains at its peak (wage rise in sight) and if inflation resurfaces, after having calmed down at the end of 2023, thanks to very positive ‘base effects’.
We will have to watch the latest inflation figures in the United States next week.
In the meantime, Wall Street continues to ignore the tensions in the interest rate market, with the most optimistic seeing it as proof of the robustness of the American economy.
The yield on T-Bonds continues to soar with a yield exceeding 4.18% over 10 years (+1.5Pt), the highest since the start of the year.
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