On Monday, financial markets reached historic heights with the Dow Jones Industrial Average (DJIA) closing above 44,000 for the first time, signaling strong investor confidence in the aftermath of the recent presidential election. This surge was mirrored by the S&P 500 (^GSPC), which also scaled a new peak, crossing the 6,000 threshold, propelled by optimism surrounding the anticipated policies of the incoming Trump administration.
The market’s optimism was fueled by expectations of lower corporate taxes, deregulation, and more lenient capital and merger regulations, essentially continuing the “Trump trade” narrative that has been a significant market mover. This bullish sentiment was not limited to traditional stocks; the cryptocurrency market also saw a remarkable rally with Bitcoin (BTC) briefly touching the mid $89,000 levels, showcasing the broad-based market enthusiasm.
Tesla (TSLA) shares, which have been on an upward trajectory, extended their winning streak to the fifth consecutive session. This surge in Tesla stock can be attributed to market expectations that the electric vehicle manufacturer could see benefits under a Trump presidency, perhaps due to changes in environmental policies or subsidies.
However, not all sectors enjoyed the same level of success. The Nasdaq Composite (^IXIC), dominated by tech stocks, ended the day just above the flatline after spending much of the session in the red. This was largely due to underperformance from tech giants Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Advanced Micro Devices (AMD) and Meta (META), which did not keep pace with the broader market’s gains. Despite this, the overall market sentiment remained positive, reflecting a belief in the potential economic stimulus from the new administration’s policies.
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