Market Momentum Continues as Investors Eye Inflation Data
The stock market rally showed no signs of slowing down on Tuesday, with major indexes adding to their record-breaking performances from the previous session. As investors eagerly awaited the release of October’s consumer inflation report, the Dow Jones Industrial Average and S&P 500 notched fresh closing highs.
Crypto Markets Soar on Trump’s Win
Bitcoin, in particular, had a stellar day, approaching the $90,000 mark for the first time. The cryptocurrency’s surge is largely attributed to President-Elect Trump’s friendly stance towards digital assets, which is expected to lead to less regulation in the industry.
Inflation Data Takes Center Stage
However, the market’s enthusiasm was tempered by the impending release of the consumer price index (CPI) on Wednesday. Economists predict a 2.5% year-over-year jump in CPI, up from 2.4% in the previous month. Any significant surprises could impact expectations around the Federal Reserve’s interest rate cuts next month.
US Indexes at a Glance
As of the 9:30 a.m. opening bell on Tuesday, US indexes stood at:
- S&P 500: 6,008.06, up 0.11%
- Dow Jones Industrial Average: 44,341.72, up 0.11% (+48.59 points)
- Nasdaq composite: 19,328.04, up 0.16%
Other Market Movers
- JPMorgan warned that the stock market’s Trump bump could come to an end once Treasury yields reach 5%.
- BCA Research increased the chances of a US recession to 75% due to Trump’s proposed trade war.
- Goldman Sachs predicted that Trump’s tax cuts could boost S&P 500 earnings by 20% over the next two years.
- A report emerged that Russia is considering merging three oil firms to create the world’s second-largest producer.
Commodities and Bonds
- West Texas Intermediate crude oil rose 1.3% to $68.92 a barrel.
- Brent crude, the international benchmark, rose by 1% to $72.62 a barrel.
- Gold was about flat at $2,618 an ounce.
- The 10-year Treasury yield climbed five basis points to 4.367%.
- Bitcoin rose 4% to $86,262.
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