What's going on?

Positive moves on Friday left the US stock market up some 21% for the year so far � and almost everyone�s keen for a slice of the action.

What does this mean?

America�s key S&P 500 index has notched 47 all-time highs already in 2021: no mean feat, especially with new coronavirus variants popping up left, right, and center. Investors, for the most part, appear to be �looking through� that risk, betting that global economies and stock markets will emerge on the other side largely unscathed.

Companies haven�t been slow to take advantage of investors� optimism, as evidenced by all those pricey initial public offerings and cash-light merger deals paid for in shares instead. But as things stand, the good times keep rolling: bullish stock backers have been vindicated � while those who called for caution may now be counting a considerable opportunity cost.

Why should I care?

The bigger picture: It�s always sunny in Shijiazhuang��

The US accounts for roughly half the total value of the world�s stock markets, making it a good barometer of investor sentiment globally. And in spite of the ongoing tensions between the two countries, the recent positivity has been reflected in China too. Local battery giant CATL on Friday announced plans to raise $9 billion from investors to further ramp up production � and rather than worrying about the value of their existing stakes getting diluted, investors took that punchiness as a signal to push up CATL�s share price.

Zooming out: �until it isn�t.

Electric vehicles are the future of the world�s auto industry � and nobody�s more aware of that fact than pioneering producer Tesla. But the cars of tomorrow (and today) need microchips, and the company�s CEO last week accused semiconductor suppliers Bosch and Renesas Electronics of holding up auto manufacturing around the planet. Rival carmaker Volkswagen is already suffering the effects: chip shortages contributed to its sales falling in July, particularly in the all-important Chinese market.