Good morning, investors. Congratulations to everyone who bet correctly on the Super Bowl across prediction markets and sports gambling platforms. Some estimates put total bets at $2 billion for the event.

We’ll have more on that later — today we’re breaking down just how relentless this bull market has become to start the year.

Global momentum

The global bull market just keeps marching higher. 

On Friday, the Dow closed above 50,000 for the first time ever, punctuating a software sell-off with a psychological win. 

While many investors consider the index a boring, old-economy relic, its record close coincides with three bullish indicators that underscore the momentum, according to Morgan Stanley strategist Andrew Sheets.

In a Sunday note, he said the fact these diverse signals are flashing at the same time is not something to ignore. 

Over the last six months:

Critics might dismiss these as isolated stories— copper as an AI play or financials as a bet on deregulation — but when viewed together, they nonetheless suggest a global expansion. 

"We believe that they form a powerful overlapping signal worthy of respect," Sheets said.

To Morgan Stanley, the pattern is particularly notable given the backdrop of easing monetary, fiscal and regulatory policy around the world.

Meanwhile, AI investment continues to rise and M&A activity is picking up.

It's true that the Magnificent 7 stocks have lagged to start the year, but the rest of the market has shown increasing resilience. 

This is demonstrated with the equal-weight S&P 500, which — like the Dow — closed at a record high on Friday. 

That implies stocks, on average, are going up, even without Big Tech doing the heavy lifting. 

History isn't a perfect crystal ball, but broadening market breadth isn't usually what happens when a bull is about to flip into a bear. 

"These are powerful forces," Sheets said.

"And together with all these indicators, raise the chances of a cycle that burns hotter before it burns out."

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📊 Inflation data comes due this week. On Friday the latest CPI data is expected to show a 2.5% rise year-over-year, while on Wednesday the delayed January jobs report is seen showing a 70,000 increase in new jobs. (Yahoo Finance)

🏦 Kevin Warsh is stirring the bond market already. The Fed Chair nominee has called for a new accord with the Treasury Department, and now investors are debating what that actually means for portfolios and yields. (Bloomberg)

📈The software rebound is starting. But some investors are already nervous at how fast the rally has resumed. Underlying worries around the tech sector remain. (WSJ)

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