Market Prices in Trump Victory with Index Records | Wall Street Today
It was a roaring day on the stock market after Former President Trump became presumptive President Trump. In the early morning hours, AP News called the election for Trump, who won nearly every swing state.
Every major index ran past all-time highs, excluding the small-cap Russell 2000, which flew 5% higher. The Dow climbed more than 1,000 points, the most in a single day since November 2022. Bitcoin hit an intra-day high of $76,000. The VIX went the other way, falling 19.61% to 16.46.
After 4:03 p.m. ET, $Dow Jones Industrial Average (.DJI.US)$ closed up 1,507 points (3.57%). The $S&P 500 Index (.SPX.US)$ closed up 2.53 %, and the $Nasdaq Composite Index (.IXIC.US)$ ended the day up 2.95%.
MACRO
VP Kamala Haris gave a concession speech after the market closed at 4:25 pm ET.
The week's highlight of macro will be the Thursday FOMC rate decision. According to the FOMC's dot plot projections, investors are waiting for two more rate cuts this year. Friday, investors will see Michigan inflation expectations from a consumer survey. According to CME futures, prices-the-market is pricing in a 25 basis point cut on Thursday, but we will see.
SECTORS
Crypto companies were flying on Wednesday, with the assumption that Trump will be staunchly pro-crypto, especially after appearing at the Bitcoin conference as a speaker. $Coinbase (COIN.US)$ 31% climbed after pro-crypto Trump won. Co-founder Brian Armstrong welcomed what he called "America's most pro-crypto Congress ever," noting that over 219 pro-crypto candidates were elected to the House and Senate.
$Crude Oil Futures(JAN5) (CLmain.US)$ climbed 0.10%. $Bitcoin (BTC.CC)$ finally broke through its record last set in March, climbing 9% to $75k. But based on the crypto's volatility around elections, it might have room to grow. According to Marketwatch, the report features analysts at CryptoQuant.
Bitcoin gained 22% and 37% in 2012 and 2016. In 2020, Bitcoin climbed 98% from November to the end of the year.
Gold and silver fell with the dollar index climbing strong. $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ and the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ climbed.
The highlight of macro for the week will be the FOMC rate decision on Thursday. According to the FOMC's dot plot projections, investors are waiting for two more rate cuts this year. Friday, investors will see Michigan inflation expectations from a consumer survey. According to CME futures, prices-the-market is pricing in a 25 basis point cut on Thursday, but we will see.
MOOVERS
$Qualcomm (QCOM.US)$ earnings after the bell sent the stock climbing 10% after the firm's forward-looking revenue came in above estimates. For its recent fourth quarter, the firm pulled in adjusted EPS of $2.69, above estimates of $2.56.
$Arm Holdings (ARM.US)$ shares tumbled 3.9% in extended trading Wednesday after the chip designer gave a fiscal third quarter outlook that missed Bloomberg consensus.
$Goldman Sachs (GS.US)$ and $JPMorgan (JPM.US)$, financial investment bank giants flew 12% and 10% higher, leading the Dow to a record Wednesday. Banking stocks act as a bellwether for the performance of equities in general, and MT Newswires reported the largest banks are pricing in anticipated lower corporate taxes and deregulation. $Morgan Stanley (MS.US)$ and $AMEX (AMEX.US)$ climbed.
$Tesla (TSLA.US)$, led by Trump's staunch supporter Elon Musk, led gains on the Nasdaq, advancing more than 14% to trade at its highest level since July.
$Super Micro Computer (SMCI.US)$ stock fell 21% after showing earnings that came in below their guidance, and said that a special committee studied governance errors mentioned in the resignation of auditor Ernst and Young. The committee found no evidence of misconduct but recommended internal governance functions.
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Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
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Kevin Travers
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Nakayama Sun : You’re careless and sloppy. Why do you still have the presidential banner and copy at the end?
102181510 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Nakayama Sun : Crypto companies were flying on Wednesday, with the assumption that Trump will be staunchly pro-crypto, especially after appearing at the Bitcoin conference as a speaker. *no, this isn’t the reason just because you personally don’t believe in crypto. One of the reasons is because crypto markets historically did well under trump and more institutions accepted them.
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Adrianlim90 : 1
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