What a month it has been! After the violent week in the market at the start of August, the returns of the magnificent eight are indeed magnificent. Nividia is up nearly 37% since its August 5th low. The Nikkei 225 is second in gains with a 22% increase, followed by Bitcoin at 20%, and Tesla at 19%. Meta and Amazon have both seen 17% growth, while Apple and Netflix have each risen by 15%.

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The Nasdaq 100 has climbed 12%, the S&P 500 by 9%, and Microsoft matched that with 9%. Google, however, has lagged behind with only a 5% increase thanks to losing an anti-trust lawsuit. The S&P 500 is only 2% off its all-time high.

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The recent surge can be attributed to a week of favorable economic data, including lower inflation, with the CPI marking its slowest growth since March 2021, strong retail sales, and fewer unemployment claims, all of which have alleviated recession concerns.

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The University of Michigan’s consumer sentiment rose to 67.8 in August 2024, marking its first increase in five months. Expectations improved for personal finances and the economic outlook, while inflation expectations remained steady.

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