Market Surge Continues as Investors Digest Trump’s Election Victory
The stock market extended its gains on Thursday, with the S&P 500 rising roughly 0.6% and the tech-heavy Nasdaq Composite moving up more than 1.4%. The Dow Jones Industrial Average hovered near the flat line, following a 1,500-point gain on Wednesday, its best day since 2022.
Federal Reserve Interest Rate Decision Looms
Investors are eagerly awaiting the Federal Reserve’s policy decision, which could be the next catalyst to move markets. A 25 basis point rate cut is widely expected, but the focus is on what Chair Jerome Powell might reveal about the future path of policy, especially in light of Trump’s return to the White House.
Corporate Earnings Roundup
Several companies reported earnings on Thursday, with mixed results. Arm Holdings’ stock fell after its revenue forecast disappointed Wall Street’s hopes for stronger growth. On the other hand, Qualcomm’s shares jumped more than 4% after its sales and profit outlooks topped estimates.
Mortgage Rates Rise for Sixth Consecutive Week
Mortgage rates rose for the sixth consecutive week, following Treasury yields higher through the presidential election. The average 30-year fixed-rate mortgage rose to 6.79%, up from 6.72% a week earlier, according to Freddie Mac data.
CEOs Weigh in on Trump’s Policies
About 24 hours after Donald Trump won the presidential election, American CEOs are already assessing how the president-elect’s policies could impact their business. Steve Madden’s CEO said the company is planning to reduce its reliance on China by approximately 40% to 45% over the next year, while Warner Bros. Discovery’s CEO sees opportunities for consolidation in the media industry.
Trump’s Presidency Expected to Boost Economy
Trump’s plans for corporate tax cuts and deregulation have fueled optimism for a boost to the economy, which could feed into stocks. However, his return could also mean rates stay higher for longer, which could impact housing affordability.
Netflix Surges to All-Time High
Netflix stock has surged to another all-time high, currently trading above $790 a share. The streamer has added more than 50 million paying subscribers since launching its password crackdown in May 2023, and its projected full-year operating margins are expected to hit 27%.
Lyft Shares Soar After Earnings Beat
Lyft shares soared more than 25% after its third-quarter earnings beat expectations. The company’s adjusted earnings per share of $0.29 were ahead of the $0.20 expected, while quarterly revenue of $1.5 billion beat Wall Street’s estimate of $1.4 billion.
Bitcoin Touches New Highs
Bitcoin briefly touched new highs just north of $76,000, extending gains from Wednesday’s monster rally following Donald Trump’s White House win. The cryptocurrency jumped to new records on Wednesday, and crypto-related stocks also rose following the presidential election results.
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