1 week ago
US markets had a mixed start to the week as the Dow Jones continued to surge higher, while the S&P 500 and the Nasdaq managed to close just above the flat line.
The Dow Jones added another 300 points to close above the mark of 44,000 for the first time. The S&P 500 was flat but managed a close above 6,000. The Nasdaq Composite too ended little changed as big tech shares underperformed.
Tesla continued on its merry ways post Donald Trump's election win last week, adding another 9% to its kitty, taking the total surge since November 5 to 44%. The stock is now well past $1 Trillion in market capitalisation.
The US Dollar hit the highest level in a year, while Bitcoin topped $88,000, as Trump Trades continued to power on.
With the election and another rate cut in the rear-view mirror, the question is whether bulls can keep pushing the market to new highs, according to Chris Larkin at E*Trade from Morgan Stanley.
“Aside from any potential profit-taking after such a strong surge, this week’s inflation data may determine whether the market pads its gains,” Larkin said.
Treasury futures were mildly lower as the cash market was closed due to a US holiday. The Bloomberg Dollar Spot Index added 0.5%. Oil sank as a soft outlook for demand in China continued to plague the market.
US inflation probably moved sideways at best in October, highlighting the uneven path of easing price pressures in the home stretch toward the Fed’s target. The core consumer price index due on Wednesday, which excludes food and energy, likely rose at the same pace on both a monthly and annual basis compared to September’s readings.
The stock market could rally stronger into the end of the year following Trump’s presidential election victory than it did when he won the US presidency eight years ago, according to JPMorgan Chase & Co.’s trading desk.
The “animal spirits” being set loose by the economic policies of President-elect Trump will send the S&P 500 to 10,000 by the end of the decade, according to veteran strategist Ed Yardeni.
His uber-bullish prediction, which would represent a 66% surge by 2030, is another sign that Wall Street is growing increasingly optimistic about stock markets in the wake of the US election. Yardeni lifted year-end targets to 6,100 for 2024, 7,000 for 2025 and 8,000 for 2026.
“Stock investors are also thrilled by the regime change to a more pro-business administration promoting tax cuts and deregulation,” he wrote in a note on Monday.
(With Inputs From Agencies.)
