Review of Market Performance in the First Half of 2024 Strong Gains in US Stocks and Cryptocurrencies
With the close of trading on Friday, the US stock market officially concluded a robust performance in the first half of 2024. Fueled by the AI boom, the Nasdaq surged by 18.1% in the first half of the year. The S&P 500 also posted strong gains of 14.5%, while the Dow Jones Industrial Average lagged behind with an increase of only 3.8%.
Regarding cryptocurrencies, Bitcoin saw a year-to-date increase of 43%, while Ether rose by 48%. Although these gains outpaced broader market indices, Bitcoin and Ether showed relative weakness recently amid the stock market’s frequent new highs.
Particularly notable was NVIDIA’s surge of 150%, leading the AI sector rally after a stock split, closing at $123.54 yesterday.
Inflation data, specifically the PCE (Personal Consumption Expenditures) index, met expectations with May’s inflation rate slowing to its lowest annual rate in over three years. The core PCE, which excludes volatile food and energy prices, rose by only 0.1% from the previous month and increased by 2.6% year-over-year, aligning with market forecasts and indicating a continued cooling of inflation.
According to CME Group’s FedWatch tool, investors slightly raised expectations for interest rate cuts this year, with a 62.4% probability that the Federal Reserve will restart rate cuts in September and a chance of further cuts in December.
Meanwhile, the overall sentiment in the cryptocurrency market remained subdued, particularly as the SEC accused entities like Lido, Rocket Pool, and Consensys of securities violations related to staking and selling securities through MetaMask.
Cryptocurrency-related sectors, such as those associated with MicroStrategy, nearly doubled in the first half of the year (98.92% increase). Coinbase, a major cryptocurrency exchange, also saw a 28% rise in the first half of the year.
MicroStrategy, self-described as a “Bitcoin development company,” attracted significant funding in traditional financial markets through continuous Bitcoin purchases. T-Rex Fund applied for the first 2x leveraged long MicroStrategy ETF, despite bearish bets against its performance.
