The stock market’s benchmark index, the S&P 500, has added around $8 trillion to its market capitalization so far this year after surging more than 20%, meaning it has added an average of $43 billion per trading day year-to-date.
According the economics outlet Kobeissi Letter on the microblogging platform X (formerly known as Twitter), the S&P 500 index added more than $8 trillion to its market capitalization amid an equities rally that has sparked concerns among investors.
BREAKING: The S&P 500 has now officially added $8 TRILLION in market cap year-to-date.That's an average of $43 billion for EVERY trading day so far this year. pic.twitter.com/Tc85W7PTPE
— The Kobeissi Letter (@KobeissiLetter) September 26, 2024
The S&P 500’s surge is coming at a time in which Bitcoin is managing to remain above the $64,000 mark and in which the price of gold has reached a new all-time high above $2,660 per ounce after surging more than 30% so far this year, marking its best year-to-date performance of this century as the U.S. M2 money supply is reaching a new high.
These price rallies appear to be linked to loose monetary policy from central banks that helped the M2 money supply surge, as the combined balance sheets of the top 15 central banks in the world topped $31 trillion as of September 25, a level that was last seen back in April as the figure has been rising for months.
The M2 money supply, which includes physical currency in circulation, savings and time deposits, and money market funds, has been growing every month since February and is now standing at $21.2 trillion according to Trading Economics.
The stock market has kept on surging this week after an upgate from the US government on the second quarter’s GDP growth beat Wall Street expectations, while weekly jobless claims fell to their lowest level in four months.
China has, meanwhile, been moving to revive its struggling economy with pledges to lift fiscal spending and support its stock market, while doing what it can to halt its ongoing property crisis.
On top of all this, the Federal Reserve’s 50 basis point rate cut this month was seen as a positive move by the market, and investors are pricing in an 57% chance of an additional 50 basis point rate cut in the central bank’s November meeting, according to the CME FedWatch tool.
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