Nov 12, 2024 (MENAFN via COMTEX) --
(MENAFN - Live Mint) *
Tesla surges beyond $1 trillion market value
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Crypto stocks gain as bitcoin rallies
(Updates with close of trading)
By Lisa Pauline Mattackal and Noel Randewich
Nov 11 (Reuters) -
The Dow Jones Industrial Average notched a record high close on Monday, lifted by bank stocks that benefited from optimism about Republican President-elect Donald Trump's expected fiscal policies.
Tesla's stock market value surged to $1.1 trillion, fueled by bets the automaker will benefit from CEO Elon Musk's close ties to Trump. Several other stocks also added to gains they have made since Trump won the election, as traders expect them to benefit from his return to the White House.
The S&P 500 financial index rallied, with banks helping lift the Dow to its highest ever.
The small-cap Russell 2000 jumped to its highest since November 2021. Smaller companies are viewed as potential beneficiaries from Trump's proposed tax cuts and expected looser regulations.
Microsoft, Amazon and Meta Platforms each dipped.
The S&P 500 has rallied almost 4% since Trump's victory last Tuesday, while the Nasdaq has gained almost 5%.
The S&P 500 information technology index and the PHLX chip index both retreated, with AI heavyweight Nvidia giving back recent gains.
"It's been a wild four days since the election and the market is taking a breath," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. "But the trend is moving higher. I would not be surprised if the Trump rally bleeds into a Santa Claus rally."
According to preliminary data, the S&P 500 gained 8.04 points, or 0.13%, to end at 6,003.58 points, while the Nasdaq Composite gained 16.07 points, or 0.08%, to 19,302.85. The Dow Jones Industrial Average rose 316.26 points, or 0.72%, to 44,305.25.
Crypto stocks rallied as bitcoin soared to a record $87,000. Coinbase Global jumped and bitcoin miners MARA Holdings and Riot Platforms also rallied.
Investors are watching consumer price inflation data, due Wednesday, and a raft of other key data this week for signals on the economy and monetary policy outlook.
The U.S. Federal Reserve cut interest rates by 25 basis points last week, and interest rate futures imply traders see a 65% chance of another 25 basis point cut at the central bank's December meeting, according to CME FedWatch.
"With policymakers already so cautious about the risk of renewed price pressures, particularly amid the continued strength of the U.S. economy, the Fed will need to tread a cautious path," warned Seema Shah, chief global strategist at Principal Asset Management.
(Reporting by Lisa Pauline Mattackal and Purvi Agarwal in Bengaluru and by Noel Randewich in Oakland, Calif.; Editing by Shounak Dasgupta and David Gregorio)
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COMTEX_459725075/2604/2024-11-12T10:18:36
