Dow Hits 44,000, S&P 500 Breaks 6,000 as Markets Soar; Bitcoin Surges to $87K
US Markets Soar to Record Highs, Bitcoin Surges Amid Post-Election Rally
U.S. stock markets experienced significant gains on Monday, with major indexes reaching unprecedented levels. The Dow Jones Industrial Average closed above 44,000 for the first time, surging 304.14 points to 44,293.13, marking a 0.69% increase. The S&P 500 also achieved a milestone, breaking the 6,000 barrier to close at 6,001.35, up 0.10%. The Nasdaq Composite edged slightly higher, closing at 19,298.76, a 0.06% increase.
The market rally, dubbed the “Trump trade,” extended its reach, benefiting various sectors including Tesla, bitcoin, the U.S. dollar, and U.S. banks. However, some tech giants like Nvidia, Apple, and Microsoft experienced declines.
Bitcoin, the leading cryptocurrency, saw a dramatic surge, jumping 8% to a record high of $87,478. Market analysts attribute this rally to optimism surrounding President-Elect Trump’s pro-crypto policies.
Investors are now turning their attention to upcoming inflation data, with the October consumer price index (CPI) scheduled for release on Wednesday. Economists predict a 2.5% year-over-year increase in CPI. Bank of America has suggested the possibility of a 25 basis point Federal Reserve rate cut in December, depending on the inflation figures.
As the corporate earnings season winds down, 91% of S&P 500 companies have reported their results. Of these, 77% beat profit estimates, while 59% exceeded revenue expectations. Nvidia, set to report on November 20, is the last major company in this earnings cycle.
In commodities, West Texas Intermediate crude oil fell 3.13% to $68.18 per barrel, while Brent crude decreased 2.59% to $71.96 per barrel. Gold also saw a decline, dropping 2.41% to $2,629.90 per ounce.
The 10-year Treasury yield remained unchanged due to the Veterans Day market closure.
As markets continue to react to post-election developments and anticipate key economic data, investors remain cautiously optimistic about the future trajectory of the U.S. economy and global financial markets.
