The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
As 2024 draws to a close, the financial world reflects on a year of unprecedented market activity and transformative global events. The U.S. stock market soared for a second consecutive bullish year, while Bitcoin and Nvidia dominated headlines with record-breaking performances. Meanwhile, shifts in macroeconomic policies and geopolitical tensions shaped asset class movements globally.
Here are the defining moments of 2024:
Trump and Musk’s Influence on Markets
The U.S. election, heralding Donald Trump’s return to the presidency, was the year’s most impactful financial event. Trump's victory fueled market volatility and unprecedented gains in Trump-affiliated stocks, including Trump Media & Technology and Tesla, the latter skyrocketing over 75% post-election. With Elon Musk appointed to head the “Department of Government Efficiency,” his influence extended beyond technology, reshaping U.S. policies on energy and infrastructure.
Bitcoin’s Meteoric Rise
Bitcoin cemented its status as digital gold, surging over 130% in 2024 and surpassing the $100,000 mark. Key catalysts included:
- Approval of Bitcoin spot ETFs in the U.S.
- Favorable regulatory policies under Trump’s administration.
- Bitcoin’s enhanced adoption in global markets and technological advancements like the Lightning Network.
By December, Bitcoin’s market cap exceeded $2 trillion, marking a historic shift in digital asset investment.
Black Monday’s Market Turmoil
August 5th saw a global market rout dubbed "Black Monday."
- The S&P 500 fell 3%, while Japan’s Nikkei 225 plunged 12%, its largest single-day drop ever.
- The selloff stemmed from the unwinding of yen carry trades and mounting U.S. recession fears.
The event underscored the fragility of global markets amidst hawkish monetary policies and geopolitical uncertainty.
Nvidia’s Unstoppable Growth
In a banner year for tech stocks, Nvidia emerged as the leader, with its stock gaining over 160% in 2024.
- Surpassing $3 trillion in market cap, Nvidia became the world’s largest publicly traded company by June.
- The company’s explosive growth was fueled by its dominance in artificial intelligence chips and a robust data center business.
Chinese Stocks Rebound on Policy Support
Beijing’s fiscal and monetary stimulus measures reinvigorated US-listed Chinese stocks, with indices like the Nasdaq Golden Dragon China rallying over 38% in late 2024.
- Companies like KE Holdings and Bilibili posted gains exceeding 70%.
- Proactive measures from China’s Politburo hinted at a moderately loose monetary policy in 2025, further stabilizing investor sentiment.
Conclusion
2024 was a year of remarkable financial milestones, from Bitcoin’s bull run to Nvidia’s tech leadership. As investors navigate these dynamic markets, the stage is set for an equally transformative 2025, with innovation, policy shifts, and global economic trends shaping the future.
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