Market Pulse: Stocks Stall as Investors Weigh Trump’s Cabinet Picks
The US stock market rally hit a speed bump on Tuesday, with futures pausing as investors assessed the implications of Donald Trump’s cabinet picks on policy and the economy. The Dow Jones Industrial Average and S&P 500 futures dipped slightly, while the tech-heavy Nasdaq 100 edged down 0.1%.
Investors Take a Breather After Record Highs
Wall Street analysts warn that the post-election surge in stocks may soon lose steam, particularly as investors have increased their exposure to US stocks to an 11-year high. This buildup of bullish bets creates a ripe environment for profit-taking, according to Citi strategists.
Trump’s Cabinet Picks and Trade Policy
The market is closely watching Trump’s cabinet picks, including Florida Sen. Marco Rubio as secretary of state, who joins other high-profile China hawks on the team. The prospect of tougher tariffs has already weighed on Chinese stocks, sparking concerns about inflation and the potential impact on the economy.
Bitcoin’s Record-Breaking Rally
Meanwhile, Bitcoin’s value soared to near $90,000 before slowing down, with the cryptocurrency still trading near $87,240, up about 6%. Other “Trump trades” such as Tesla and crypto-linked stocks Coinbase and Robinhood struggled to make gains.
Economic Data in Focus
Investors are now turning their attention to Wednesday’s consumer price index report for October, which will provide insight into inflation trends. Thursday’s retail sales data will also be closely watched, as the Federal Reserve prepares for its December meeting.
Other Market Movers
Shopify surged after exceeding quarterly revenue estimates and raising its holiday sales forecast. Home Depot raised its annual outlook, citing strong demand from contractors despite the broader pullback in consumer spending. Rent prices, meanwhile, ticked down 0.6% in October, according to Redfin, as the supply of apartments outpaces demand.
What’s Next?
As the market navigates the impact of Trump’s policies and cabinet picks, investors will be closely watching economic data and corporate earnings for signs of what’s to come. With the Federal Reserve set to meet in December, all eyes will be on interest rates and the potential for inflationary pressures to rise.
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