2024's Financial Frenzy: Did You Capitalize on Key Market Trends?

As 2024 draws to a close, the year has been marked by a succession of pivotal global events. Financial markets saw significant volatility, with various asset classes posting notable performances.

The U.S. stock market, in its second bullish year, repeatedly shattered records. Nvidia claimed the crown, tech giants reigned supreme, and AI continued to fuel the market's ascent. Globally, interest rates took a downturn amidst ongoing geopolitical tensions, propelling gold to unprecedented heights. Meanwhile, the U.S. election ushered in the Trump 2.0 era, setting the stage for America's transformation into a crypto hub. Against this backdrop, Bitcoin surged past the pivotal $100,000 mark.

Join us as we revisit the unforgettable moments that defined this extraordinary year in finance!

The U.S. presidential election was the year's most impactful financial event. Trump won the election and swept Congress, becoming the first non-consecutive two-term president since 1892.

The year 2024 is pivotal for Bitcoin, catalyzing a sustained bull market. In January, Bitcoin spot ETFs were approved. April brought the halving event, while September initiated an interest rate cut cycle. November saw Donald Trump winning the U.S. election and the introduction of Bitcoin spot ETF options. In December, Trump appointed crypto advocate Paul Atkins as SEC chair, propelling Bitcoin from $70,000 to over $100,000.

Increased investment opportunities, enhanced market liquidity, and a supportive regulatory environment have attracted substantial capital to Bitcoin. Within ten months of its debut, the Bitcoin ETF's assets surpassed $100 billion, reaching 82% of the U.S. gold ETF's size. Remarks by Federal Reserve Chair Jerome Powell in December, likening Bitcoin to digital gold, pushed the Bitcoin-to-gold ratio to a record high.

The unwinding of yen carry trades fueled the market selloff, driven by hawkish signals from the Bank of Japan and mounting US recession fears. On July 31, Japan unexpectedly raised interest rates by 15 basis points, the first hike in 30 years, exceeding market expectations and causing a sharp yen appreciation. US non-farm payroll data for July, released on August 2, missed forecasts, heightening recession concerns and sending US Treasury yields down. Traders had exploited cheap yen loans to invest in higher-yield markets for carry trade gains. However, with the yen strengthening, US stocks declining, and Treasury yields falling, carry trade profits were squeezed, prompting a reversal.

Nvidia’s ascent has been meteoric, swiftly claiming the crown as the king of the stock market. On February 22, the company unveiled its fiscal 2024 full-year results, highlighting explosive growth in its data center division. Revenue jumped 126% year-over-year, while net profit soared 581% from the prior year. The stock climbed more than 16% that day, adding $277 billion to its market value—a record single-day gain in U.S. stock market history. By the next day, Nvidia's market capitalization surpassed $2 trillion.

On April 19, despite a 10% drop on "Black Friday," the company set the stage for further growth. The leap from $1 trillion to $2 trillion took just nine months, and within 103 days, by June 5, Nvidia surpassed the $3 trillion mark. By June 18, Nvidia had overtaken Microsoft and Apple to become the world’s largest publicly traded company, with a market cap of $3.33 trillion.

On Sept. 24, the People’s Bank of China initiated comprehensive monetary stimulus and real estate support, including interest rate cuts and reduced reserve requirements. Two days later, the Politburo unveiled fiscal spending plans to boost consumption, manage local government debt, and stabilize the property market. These actions, along with expected additional measures, have bolstered market expectations for economic expansion.