Stock Market Recap: Wall Street Cruises Towards Best Week in a Year
Major Indexes Hit New Records as Markets Digest Trump Victory and Fed Rate Cut
As of Friday, November 8, 2024, the U.S. stock market is poised to close out its best week in a year, with major indexes reaching new milestones. This remarkable performance comes in the wake of Donald Trump’s presidential election victory and the Federal Reserve’s latest interest rate cut.
Current Market Performance
As of 10:20 a.m. Eastern time:
– The S&P 500 (^GSPC) rose 0.3%, touching the 6,000 mark for the first time in history. The index is on track for a weekly gain of about 4.4%.
– The Dow Jones Industrial Average (^DJI) climbed 190 points, or 0.4%, crossing the 44,000 threshold for the first time. It’s up 4.2% for the week.
– The Nasdaq Composite (^IXIC) remained virtually unchanged but is still outperforming with a 5.7% advance for the week.
These gains put all three major averages on pace for their strongest weekly performance since November 2023 .
Key Factors Driving the Market
1. Trump’s Election Victory: The market has responded positively to President-elect Donald Trump’s win, with investors betting on his proposed policies to boost economic growth .
2. Federal Reserve Rate Cut: The Fed’s decision to cut interest rates again has further fueled market optimism, making borrowing easier for businesses and consumers .
3. Strong Economic Indicators: A preliminary report suggests that consumer sentiment in the U.S. has risen for the fourth consecutive month, reaching its highest level in six months .
Notable Stock Movements
– Axon Enterprise (AXON) jumped 15.3% after reporting stronger-than-expected quarterly profits and raising its full-year revenue forecast to $2.07 billion .
– Expedia Group (EXPE) rose 7.9% following better-than-anticipated profit results and a 9% increase in booked room nights .
– Airbnb (ABNB) sank 9.2% after issuing disappointing fourth-quarter forecasts .
– Pinterest (PINS) slid 14% due to lower-than-expected revenue guidance .
– Tesla (TSLA) saw its market cap hit $1 trillion as shares soared up to 7% .
– Trump Media & Technology Group (DJT) leaped 10% after Trump announced he would not sell his shares in the company .
Upcoming Market Events
While specific upcoming events were not detailed in the search results, investors should keep an eye on:
1. Further policy announcements from the Trump administration
2. Upcoming earnings releases from major companies
3. Economic data announcements that could impact market sentiment
Global Market Influences
– Chinese Fiscal Stimulus: Beijing announced a 6 trillion yuan ($839 billion) three-year plan to help local governments refinance debt. However, this fell short of investor expectations, putting pressure on Chinese stocks and oil prices .
– European Markets: European indexes were mostly lower and on track for a losing week, partly due to concerns about potential trade tensions arising from Trump’s tariff talks .
Bond Market and Inflation Expectations
The yield on the 10-year Treasury fell to 4.26% from 4.33%, reflecting easing inflation expectations. A University of Michigan survey indicated that expectations for inflation in the coming year have dropped to their lowest level since 2020 .
Looking Ahead
As the market digests the recent political changes and monetary policy decisions, analysts caution that the sustainability of these gains remains to be seen. The “Trump trade” has particularly benefited U.S. banks and domestically focused companies, but potential volatility may occur as campaign promises transition into actual policies .
Investors should remain vigilant and prepared for potential market adjustments as the new administration’s economic policies take shape in the coming weeks and months.
