Retail Investors Propel Nvidia’s Surge

FINANCE
Retail Investors Propel Nvidia’s Surge

Retail investors have funneled nearly $30 billion into Nvidia shares in 2024, a nearly nine-fold surge from 2021, according to Vanda Research. This remarkable inflow has positioned Nvidia as the most-purchased stock among retail traders, overtaking Tesla’s long-held dominance. Nvidia’s leadership in artificial intelligence has captured attention on both Wall Street and Main Street, driving a staggering 180% rise in its stock price this year and securing its inclusion in the prestigious Dow Jones Industrial Average.

Nvidia has grown to become the second-largest holding in the average retail investor’s portfolio, doubling its portfolio weight since early 2024. Investors like Michael MacGillivray and Genevieve Khoury cite Nvidia’s innovation in AI and steady stock performance as key motivators for their investments.

While recent market volatility has slightly tempered inflows, experts like Gil Luria from D.A. Davidson emphasize Nvidia’s incredible rise and more balanced valuation. Despite potential headwinds, the chipmaker’s dominance in AI innovation continues to fuel investor confidence and long-term growth prospects. With its position at the forefront of AI technology, Nvidia remains a beacon for retail investors seeking to align their portfolios with transformative trends.

FINANCE
Japan Leads Asia-Pacific Stock Gains

Asia-Pacific markets had a mixed performance on Thursday, with Japan leading the region’s gains amid reports of a record $735 billion budget proposal for the upcoming fiscal year. The Nikkei 225 rose 1.12% to 8,220.9, and the Topix gained 1.20% to close at 2,766.78. The proposed budget aims to address growing social security expenses and debt obligations, according to a Reuters report.

Bank of Japan Governor Kazuo Ueda highlighted progress toward achieving 2% inflation by 2025, driven by wage growth. The 10-year Japanese government bond yield increased to 1.078%, and the yen strengthened, signaling potential interest rate hikes.

Automakers Nissan and Honda surged 6.58% and 3.84%, respectively, on news of merger discussions that could create the world’s third-largest car manufacturer. In contrast, South Korea’s Kospi slipped 0.44%, influenced by domestic political developments.

Singapore’s manufacturing output rose 8.5% in November year-over-year but fell short of expectations. Key markets like Australia, New Zealand, and Hong Kong remained closed for Boxing Day. In the U.S., Tuesday’s trading kicked off the Santa Claus rally with major indices posting gains, driven by optimism during the holiday season.

FINANCE
Canada GDP Slips in November

Canada’s GDP cooled in November after a stronger-than-expected 0.3% growth in October, according to preliminary data from Statistics Canada. Industry-level GDP dipped 0.1%, marking the first potential contraction this year. Despite this, fourth-quarter growth remains stronger than the third quarter’s 1% annualized rate but falls short of the Bank of Canada’s 2% projection.

Weakness in natural resources, transportation, and finance sectors was partially offset by gains in real estate, food services, and accommodations. Labor disputes and postal strikes likely contributed to the slowdown. Factory sales rose, while wholesale and retail sectors showed mixed performance.

Economists anticipate gradual recovery in 2025, supported by lower borrowing costs, cooling inflation, and fiscal stimulus, including a federal tax holiday and relaxed mortgage lending guidelines.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.