US Stocks Soar: Election Results Spark Market Rally

Market Optimism Soars as Election Results Sink In

The US stock market is riding high, with index futures surging on Monday as investors continue to digest the aftermath of the presidential election. As the dust settles, several stocks that saw a boost following the election results are maintaining their upward momentum.

Tesla Leads the Charge

Electric vehicle manufacturer Tesla is one of the biggest winners, with its stock price surging 6.5% in premarket trading. This comes after the company’s market value hit $1 trillion on Friday, a milestone it last reached in 2022.

Small-Cap Stocks Shine

Futures tracking the small-cap Russell 2000 index are also on the rise, up 1.3% and hovering at their highest level since last November. This sector is expected to benefit greatly from President-elect Donald Trump’s proposed tax cuts and anticipated easier regulatory environment.

Crypto Stocks Join the Party

Cryptocurrency-related stocks are also seeing a significant boost, with Coinbase Global jumping 16.3% and bitcoin miners Mara Holdings and Riot Platforms gaining 19.4% and 13.4%, respectively. According to Russ Mould, investment director at AJ Bell, the crypto rally is not just due to the election results, but also down-ticket victories for candidates who support the asset class.

Major Indexes Reach New Heights

The benchmark S&P 500 index saw its best week in a year, briefly breaking through the 6,000 mark on Friday. The Dow also touched 44,000 points for the first time, marking its best week in over a year.

Economic Data Takes Center Stage

As the year draws to a close, investors are eagerly awaiting key economic data releases, including consumer price inflation data due on Wednesday. This will provide valuable insights into the health of the economy and the outlook for interest rates. With the Federal Reserve having cut interest rates by 25 basis points last week, investors are expecting a similar move at its December meeting.

Trump’s Economic Agenda Gains Traction

According to SEB Research analysts, Trump’s growth-focused economic agenda has received a positive confirmation from investors, with the benchmark index already up 25% year-to-date. The president-elect is expected to continue evaluating his political actions against the performance of the US stock market.

Other Market Movers

Trump Media & Technology saw a 7.7% gain, while other Trump-related stocks such as Rumble and Phunware advanced 3.1% and 5.5%, respectively. Cisco inched 1.9% higher after J.P.Morgan upgraded its shares to “overweight” from “neutral”. However, Sapiens International plummeted 22.2% after cutting its annual revenue forecast.

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