The Dow and the S&P 500 hit new records as stocks rally on Trump’s election win and Fed interest rate cuts
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The stock market marked a historic milestone on Friday, as the Dow Jones Industrial Average hit 44,000 for the first time in its 128-year history, while the S&P 500 crossed the 6,000 mark. Stocks continued their rally, fueled by momentum from Donald Trump’s presidential election victory.
As the day ended, the Dow was up 267 points, or 0.6%. Meanwhile, the S&P and Nasdaq gained 0.3% and 0.09%, respectively.
Alongside the stock rally, U.S. Treasury yields have also increased, raising concerns among some analysts about market stability and the potential effects on equities. Goldman Sachs (GS+1.31%) analyst David Kostin released a report Wednesday detailing an updated outlook for the equity markets. In the report, Kostin cautioned that a significant rise in 10-year Treasury yields could constrain any sustained stock rally.
“A further sharp increase in 10-year Treasury yields would likely limit the magnitude of any potential rally in stock prices.” he wrote.
Tesla market cap hits $1 trillion
Tesla’s (TSLA+8.11%) market capitalization hit $1 trillion Friday morning, as Trump’s election win has helped the EV maker’s stock surge this week.
The company’s share price rose more than 6% to about $313 during intraday trading on Friday. It marks the first time Tesla stock has risen above $300 per share since September 2022. The EV giant is now the ninth largest company in the world by market cap.
Airbnb stock drops 7%
Airbnb (ABNB-8.69%) reported its third-quarter earnings on Thursday after the market closed, narrowly missing analyst expectations on earnings per share (EPS) but managing a slight revenue beat. The company posted an EPS of $2.13, just under the expected $2.14, while revenue came in at $3.73 billion, edging out the anticipated $3.72 billion.
Bitcoin hits another high
Bitcoin, which hit a record high of $76,000 on Wednesday, continued its upward journey and reached another high on Thursday at $76,872, as crypto markets continued to celebrate the election outcome. Investors are closely watching the cryptocurrency for signs of continued strength amid shifting market dynamics.
