The S&P 500 officially entered a new bull market yesterday after spending 248 trading days in the bear market territory. The bull market happens when stocks rise by 20% or more from a recent low, indicating a positive outlook for the economy. The market's rebound is attributed to the Federal Reserve's aggressive monetary policy, which injects liquidity into the economy and supports financial markets.
Nvidia's rise has it trading expensively compared to other mega-sized firms. The opportunity in AI still makes the stock compelling, as AI is expected to revolutionize various industries, including healthcare and finance. Nvidia's revenue growth is driven by its dominance of the AI chip market, making it a key player in the industry.
Big banks and investors quickly sought to distance themselves from fossil fuels following pressure from environmentalists. This move comes as climate change concerns continue to mount, and investors increasingly look for sustainable investments. Several banks have pledged to stop financing oil and gas drilling in the Arctic, while BlackRock, the world's largest asset manager, has announced plans to exit investments with high sustainability risks.
Investing.com reports that US stocks were rising, with the S&P 500 heading towards another weekly winning streak. The Dow Jones Industrial Average rose by 0.3%, while the Nasdaq Composite gained 0.8%. The market's positive outlook is attributed to the recent stimulus package, which aims to support the economy and boost consumer spending.
Foreign investors have been selling Chinese securities for the last two years, according to the Atlantic Council. President Xi Jinping's policies of state control and centralization have eroded trust in China's markets, leading foreign investors to withdraw their investments. This trend could have long-term implications for China's economy, as foreign investments are critical for growth.
Growth stocks are enjoying huge gains in 2023 so far due to the hype surrounding artificial intelligence and expectations of a slowdown in the economy. The technology sector has been particularly robust, with firms like Amazon and Microsoft posting strong quarterly earnings. Investors are increasingly looking for growth stocks to diversify their portfolios and capitalize on the AI boom.
General Motors will invest $500 million in its Arlington, Tex., factory to build a new generation of ICE-powered full-size SUVs. The move comes as GM aims to meet rising demand for SUVs and trucks, which have become increasingly popular in the US. The investment will create 1,000 new jobs and secure the future of the Arlington factory.
CNBC's Jim Cramer told investors to be wary of the week, especially Wednesday's Fed meeting, even though the market's been performing well. The Fed's monetary policy decisions could have significant implications for financial markets, and investors should be prepared for potential volatility. Cramer advised investors to remain cautious and focus on long-term investments rather than short-term gains.
