French CAC40 and Wall Street Achieve Record Highs, Nvidia Surpasses $2 Trillion Valuation

The French CAC40 index has experienced an impressive rally, recording eight consecutive sessions of gains, which includes seven new all-time highs reached in succession, culminating at 7,980 points. Over just the past week, the index has increased by 2.5%. This trend indicates a potential for the CAC40 to secure its 17th consecutive week of profits, only interrupted by a minor 1.6% drop during the initial week of January.

Although the CAC40 hasn't yet breached the 8,000 mark, it's smaller counterpart, the SBF-120 index, has hit 6,000 points for the first time, setting a record at 6,025 points. Similarly, the Euro-Stoxx50 index has reached a new peak at 4,878 points. Over in the United States, Wall Street has followed suit with the Dow Jones, the S&P 500, and the Nasdaq-100 all registering record highs, driven in part by Nvidia's outstanding performance.

Nvidia's shares have soared, with a 4% increase taking its price to $825 per share. As a result, the company's valuation has surpassed the $2 trillion threshold, an economic weight greater than the GDP of countries such as Canada, South Korea, or Russia. The chipmaker also celebrated the largest single-day capital gain in history, adding an extraordinary $277 billion in market value, surpassing previous records set by Meta and Apple.

This flurry of market activity has also translated into unprecedented trading volumes for Nvidia, with an astonishing $60 billion worth of shares changing hands in just one session. The company has broken records for both the volume of derivative trading and the highest single-day turnover for a stock.

According to Christopher Dembik, a market expert, Nvidia's exceptional earnings have had a more significant impact on the short-term direction of the stock market than macroeconomic statistics or monetary policy decisions from central banks. Despite concerns about economic deterioration at the end of 2023, investor sentiment remains positive, suggesting the market rally may well continue.

In economic news, Germany's GDP dropped by 0.3% in Q4 of 2023, confirming initial data. Interestingly, the Ifo business climate index for Germany showed a slight improvement, indicating that business leaders might be expecting rate cuts in the second half of 2024. Concurrently, bond markets have enjoyed a boost with key bond yields slipping downwards.

Meanwhile, the foreign exchange market has stayed relatively steady, with a marginal decrease in the Dollar Index and a slight recovery of the Euro. Notably, oil prices have fallen, with Brent crude dropping by 1.7%.

In the corporate sector, several companies have made significant announcements. Capgemini revealed the expansion of its strategic partnership with Unity, specializing in real-time interactive 3D content. Bouygues Telecom has secured an exclusive agreement to acquire La Poste Telecom. Sanofi announced that the US FDA is granting a priority review for a new application of its drug Dupixent. Investors are also digesting the latest annual results from retailers and manufacturers such as Fnac Darty, Alten, and Lisi.

CAC40, Record, Nvidia