US stocks gained ground on Monday, continuing the postelection rally as investors recalibrate their portfolios in anticipation of a second Donald Trump presidency. With market optimism soaring, various sectors saw significant gains, from cryptocurrencies to tech stocks and the US dollar.
Bitcoin, the world’s largest cryptocurrency, surged to an all-time high above $82,000, continuing to benefit from Trump’s victory, which the market views as a potential catalyst for the crypto market. Investors are hopeful that Trump’s policies may further fuel the growth of digital currencies, adding to their positive momentum.
Tesla also saw a notable boost, with its stock rising over 8% to about $348.50. This jump helped the electric vehicle maker reclaim a $1 trillion market cap for the first time since April 2022.
Tech analyst Dan Ives hailed the Trump win as a “game changer,” raising his price target for Tesla to $400 a share, signaling further optimism in the company’s future performance.
The market’s attention is now shifting toward inflation data, with the Consumer Price Index (CPI) for October set to be released on Wednesday.
Economists predict a 2.5% year-over-year increase in CPI, slightly higher than the 2.4% rise seen in September. This data will be critical for shaping expectations about future interest rate hikes.
On Thursday, investors will get another inflation reading with the Producer Price Index (PPI), expected to rise by 0.2% month-over-month compared to a flat reading in September. With inflation concerns still at the forefront, these reports will guide market sentiment in the coming days.
Earnings season is winding down, but corporate results remain a key focus for investors. So far, 91% of S&P 500 companies have reported their third-quarter results.
Of those, 77% exceeded profit estimates by a median of 6%, and 59% surpassed revenue forecasts by a similar margin, according to Fundstrat. The earnings season will conclude with Nvidia, the chip giant, reporting its results after the market close on November 20.
At the opening bell on Monday, US indexes showed the following:
- S&P 500: 6,015.56, up 0.33%
- Dow Jones Industrial Average: 44,384.62, up 0.90% (+395.63 points)
- Nasdaq Composite: 19,339.95, up 0.28%
Other noteworthy developments include economists suggesting that Trump’s policies could potentially provide Americans with some of the very things they voted against, raising questions about how his presidency will impact economic dynamics in the coming years.
Meanwhile, Bitcoin’s rise above the $80,000 mark continued to attract attention, with the cryptocurrency peaking at $82,500 over the weekend.
As cost-of-living concerns continue to weigh on American consumers, some have become “oversavers,” adding to the uncertainty in the broader economy.
In commodity markets, oil prices experienced declines, with West Texas Intermediate crude dropping 2.76% to $68.44 a barrel, and Brent crude down 2.52% to $72.01. Gold also saw a decrease, falling 2.07% to $2,639 an ounce. The 10-year Treasury yield remained steady at 4.310%.
Overall, it’s a dynamic time in the markets as investors prepare for the implications of a Trump presidency, keeping a close eye on inflation data, corporate earnings, and evolving trends in commodities and cryptocurrencies.