Market Milestones: Stocks Soar to New Heights
The US stock market is on track to record its best week of the year, with the S&P 500 hitting 6,000 for the first time ever. The Dow Jones Industrial Average also crossed 44,000, a new milestone. This surge in stocks is largely attributed to optimism surrounding President-elect Donald Trump’s policies and the Federal Reserve’s latest rate cut.
Tech Stocks Shine
Nvidia, the AI darling, officially entered the Dow on Friday, replacing chip giant Intel. Tesla’s market cap soared above $1 trillion, with shares rising as much as 7%. Other notable movers touching all-time highs include the S&P 500’s Industrials Sector ETF and Consumer Discretionary stocks.
China’s Stimulus Plan Falls Short
Disappointment over China’s new fiscal stimulus plan has put pressure on Chinese stocks and oil prices. The $1.4 trillion plan to refinance local government debt has left investors unconvinced of its potential to spur the economy.
Semiconductor Sector Uncertainty
The semiconductor sector is bracing for uncertainty surrounding Trump’s approach to the industry. Analysts are concerned about potential restrictions on chip exports to China and the impact of the CHIPS Act funding.
Bitcoin Rallies
Bitcoin hovered near $76,000 on Friday, driven by the risk-on rally post-Trump’s White House win. The cryptocurrency has spiked to new highs, with Trump previously advocating for the creation of a national crypto stockpile.
Earnings Roundup
Airbnb shares fell nearly 10% after posting mixed third-quarter results. Bank of America analyst Justin Post maintained his Neutral rating on the stock, while JPMorgan analyst Doug Anmuth also has a Neutral rating.
Trump Media & Technology Group Soars
Trump Media & Technology Group stock leaped 10% and was briefly halted for volatility after Trump said he would not sell his shares in the company. The stock has been on a wild ride, with shares rallying by more than 60% in the past month.
Consumer Sentiment Improves
The latest consumer sentiment survey from the University of Michigan revealed consumers expect inflation to sit at 2.6% in a year, a decrease from last month’s expectation. The overall consumer sentiment index popped to a reading of 73, up from 71 in October.
Market Themes
Key market themes include China’s stimulus falling short, Paramount missing earnings despite streaming growth, and Nvidia hitting a $3.6 trillion market cap. Investors are also pulling back on Trump trades, uncertain about his tariff plans.
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