US Stocks Rise as Trump Rally Stabilizes After Previous Dip
US stocks rose on Monday, recovering some losses from the previous week. Crypto assets remained stable, continuing their post-election rally.
Market Reactions to Political Changes
The decline in equities last week was attributed to multiple factors. The GOP sweep initially boosted share prices, reminiscent of past elections where market gains followed Republican victories. For instance, the S&P 500 increased by about 6% after Trump's election in 2016.
Market sentiment shifted as investors reacted to Trump's controversial cabinet picks and chaotic political developments. Concerns arose regarding potential economic impacts from Trump's proposed tariffs and mass deportations, contributing to market pullbacks.
Economic Indicators
Inflation remains a concern, with rising prices and resilient job market data complicating the Federal Reserve's position. Initial jobless claims for the week ending November 9 were recorded at 217,000, lower than the expected 224,000. Core CPI for October indicated a 3.3% year-over-year price increase, far exceeding the Fed's 2% target.
Fed Chair Jerome Powell noted that the central bank is not rushing to lower interest rates and will continue monitoring economic data closely.
Current Market Trends
As of 2 pm ET, the S&P 500 increased by 0.4%, and the Nasdaq Composite gained 0.7%. Bitcoin remained steady around $90,300.
Upcoming Earnings Reports
This week, several major companies are set to report third-quarter earnings, which may influence market movements. Nvidia, the largest publicly listed company by market cap, will report on Wednesday, with investors looking for indications of continued success from the AI sector. Walmart and Target will also release their earnings on Tuesday and Wednesday, respectively, providing insights into consumer health.