Nvidia finally stole the title of the world’s most valuable company from Microsoft and Apple yesterday following a beautiful 3.5% rally that propelled the share price past $135 a share. According to Bloomberg, the Magnificent Seven have contributed to more than 60% of the S&P500’s return so far this year. The rest is not doing as well. The S&P500’s equal weight index is stagnating, the reflation trade is weakening along with cautious Federal Reserve (Fed) talk and mixed economic data, there is still a chance that we see a sharp economic slowdown in the US as a result of a painful tightening cycle. Data yesterday showed that retail sales in the US barely increased in May, last two month figures were revised to the downside and core retail sales even fell 0.1% from the month earlier. Industrial production on the other hand jumped more than expected. Across the Atlantic, inflation in the UK hit the Bank of England’s (BoE) 2% inflation goal and fueled speculation that the BoE could announce a surprise rate cut when it meets tomorrow. Sterling’s kneejerk reaction was surprisingly positive, however. There is little chance that tomorrow will bring a rate cut in the UK, but the thought of it could keep sterling bulls under control until tomorrow’s MPC decision. Listen to find out more!