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The Dow surged on Monday to build on the roaring post-election rally, but tech struggled as the "Trump trade" took the spotlight in markets in the runup to fresh inflation data.
The Dow Jones Industrial Average (^DJI) led the way higher, up over 400 points, or about 1%, while the S&P 500 (^GSPC) moved up 0.1%. Both indexes are coming off their best week of the year, capped by record highs.
Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) slipped 0.1% as Nvidia (NVDA), Apple (AAPL), and Meta (META) lagged.
Markets opened on Veterans Day with stocks at all-time highs thanks in large part to expectations for lower corporate taxes and deregulation from President-elect Donald Trump. The Federal Reserve's latest interest-rate cut was also buoying the mood.
Bitcoin (BTC-USD) hit a record high above $82,000 amid high hopes for a crypto-friendly Trump administration and Congress. Dogecoin (DOGE-USD) and other smaller digital currencies also gained as traders bet on Trump's promise to make the US a leading light in crypto.
That optimism also helped push crypto-related stocks higher, building on sharp gains booked since the election. Trading platform provider Coinbase (COIN) rose over 13% early Monday, while shares in peer Robinhood (HOOD) put on over 8%.
Tesla (TSLA) shares — another "Trump trade" hot spot — continued to climb, up over 8%. The EV maker's stock hit its highest close in over two years on Friday, topping $1 trillion in market value amid optimism over CEO Elon Musk's relationship with the incoming president.
At the same time, doubts about the stock market rally's staying power are starting to emerge. Wall Street is waiting for October consumer inflation data on Wednesday for pointers to the path of rates. Last week, Chair Jerome Powell stayed mum on the Fed's thinking in the face of Trump policies that could keep price pressures in play.
Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards
One worry is that Trump's proposed tariffs could feed through into higher inflation, prompting the Fed to scale back on rate cuts. Minneapolis Fed President Neel Kashkari said on Sunday that if there is an escalating "tit-for-tat" reaction by other countries, policymakers will "have to wait and see".
Traders now see a 65% chance that the Fed lowers rates by another quarter percentage point in December, per the CME FedWatch Tool. A week ago, before the presidential election, the odds stood at almost 80%.
LIVE 4 updates
Bitcoin touches $83,000
Bitcoin (BTC-USD) just touched another record milestone — the $83,000 level.
Bitcoin reaches record high above $82,000 as crypto, Trump trades dominate stock market
Yahoo Finance's Josh Schafer reports:
Bitcoin (BTC-USD) reached a record high on Monday, trading north of $82,400 on Monday morning and pushing several names in the stock market tied to the crypto trade and the post-election Trump rally higher to start the week.
Coinbase (COIN), which offers cryptocurrency trading on its platform, was up more than 13% early Monday and has now soared about 65% in the past five trading sessions.
Similarly, Robinhood (HOOD), which also facilities crypto trading, saw its stock rise more than 8% Monday and is now up more than 36% across five days.
Read more here.
Stocks open at all-time highs as Tesla soars again, bitcoin hits $82,000
Stocks on Veterans Day opened at all-time highs as market euphoria continued following the presidential elections and the Fed's latest rate cut last week.
The Dow Jones Industrial Average (^DJI) led the way higher, up roughly 0.6%, while the S&P 500 (^GSPC) moved up 0.3%. The tech-heavy Nasdaq Composite (^IXIC) added about 0.3%.
Two of the biggest "Trump trades" to watch on Monday were bitcoin (BTC-US) touching $82,000 to a new all-time high, and Tesla (TSLA) gaining for a fifth straight session.
The EV maker's stock topped $1 trillion in market value on Friday. CEO Elon Musk was a major political supporter of Trump, helping him get elected.
On Monday, Wedbush analysts raised their price target on Tesla's stock to a Wall Street high, while maintaining an Outperformance rating.
"We are raising our price target on Tesla to $400 from $300 as we believe the Trump White House win will be a gamechanger for the autonomous and AI story for Tesla and Musk over the coming years," Wedbush managing direction Dan Ives wrote in a note.
Good morning. Here's what's happening today.
Today, on Veteran's Day, stock markets are open and pointing to further post-election gains, amid big moves in digital assets. Tesla (TSLA) shares surged more than 7% in premarket trading, fueled by optimism over CEO Elon Musk's support for President-elect Donald Trump. Meanwhile, bitcoin (BTC-USD) hit a new milestone, surpassing $82,000, as Trump’s pro-crypto stance and a Congress with more crypto-friendly lawmakers spark investor enthusiasm.
Here are some of the biggest stories you may have missed over the weekend and early this morning:
OpenAI pursues shift that could put Nvidia dominance at risk
Trump's presidency carries plenty of market risk, experts warn
Tesla stock extends rally as Musk-Trump alliance fuels gains
The US ordered TSMC to halt AI chip shipments to China: Source
Bitcoin tops $82,000 as Trump win lifts crypto prospects
Trump presidency likely won't be a problem for Nvidia's stock
China Nears Record $1 Trillion Trade Surplus as Trump Returns
