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12.11.202407:38 Forex Analysis & Reviews: Elections, Bitcoin, and Tesla's $1 Trillion Value: What Else is Happening in the Market?

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Exchange Rates 12.11.2024 analysis

Wall Street on High: Stock Market Hitting Records on Expectations of New Fiscal Policy

Wall Street's major indices ended Monday's trading session at record highs, helped by stocks of companies expecting a positive effect from possible economic decisions by Republican President-elect Donald Trump.

Tesla on the Rise: Market Cap Surpasses $1 Trillion

Tesla (TSLA.O) shares soared 9%, pushing the company's market cap back above $1.1 trillion. Investors are betting on CEO Elon Musk's close ties to Trump, which they believe bodes well for the company. In addition, other stocks, whose owners are also hoping to benefit from Trump's return to the White House, played a significant role in the index's growth.

Financials Drive Dow to New Highs

The S&P 500 .SPSY gained 1.4%, helped by strong support from the financials sector, which in turn allowed the Dow to soar to an all-time high. Banks such as Wells Fargo & Co (WFC.N) and JPMorgan (JPM.N) contributed the most.

Small Businesses Riding the Crest of Growth: Russell 2000 on High

The Russell 2000 small-cap index .RUT posted a solid 1.5% gain, hitting its highest since November 2021. Traders believe that smaller companies will benefit significantly from Trump's proposed tax breaks and expected regulatory easing.

Tech Bigs Slip Slightly

The largest tech companies, including Microsoft (MSFT.O), Amazon (AMZN.O) and Meta Platforms (banned in Russia), all posted declines of around 1%, slightly slowing the overall pace of growth.

Amid these changes, the S&P 500 has gained nearly 4% since Trump's election on Tuesday, while the Nasdaq has gained nearly 5%, showing a general revival in the stock market ahead of new prospects.

Tech in the Shadows: IT and Chipmakers Take a Step Back

The S&P 500 Information Technology Index .SPLRCT lost nearly 1%, while the PHLX Chip Index .SOX sank 2.5%, succumbing to pressure after last week's rapid gains. AI leaders like Nvidia (NVDA.O) also slipped slightly, giving up some of their recent gains to end the day down 1.6%.

'The Market Is Taking a Breather': Investors Watch Trends

"We've seen a lot of movement in the market over the last four days, and now it's taking a little bit of a break," said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma. "But the positive trend remains. If the 'Trump rally' continues, it's possible that it could turn into a traditional 'Christmas rally.'"

Record Highs: Wall Street Rewrites Highs

All three of Wall Street's key indexes hit all-time highs at the close of trading. The S&P 500 rose 0.10% to end the day at 6,001.35. The Nasdaq closed at 19,298.76, up 0.06%, and the Dow Jones Industrial Average rose 0.69% to end at 44,293.13.

Active Trading: Volumes at Peak

Trading volume exceeded normal levels on Monday, reaching 15.4 billion shares, well above the 20-session average of 12.8 billion.

Cryptocurrency Boom: Coinbase and Miner Shares Soar on Trump Policy Expectations

The cryptocurrency industry has seen significant gains since the election results came in. Coinbase Global (COIN.O) shares jumped a whopping 20%, while Bitcoin mining companies MARA Holdings (MARA.O) and Riot Platforms (RIOT.O) gained 30% and 17%, respectively.

Bitcoin storms records, price close to $90,000

Bitcoin nearly reached the symbolic $90,000 mark on Tuesday, riding a wave of optimism following Donald Trump's election. Expectations in the crypto community that the new administration will support digital assets have grown. Following the news of Trump's victory, the world's largest cryptocurrency reached $89,637 in the Asian session, recording a growth of more than 25% since the beginning of November.

Parallel Rise: Tesla Rising Along With Bitcoin

Shares in Elon Musk's Tesla (TSLA.O) also saw impressive gains, up nearly 40% after Trump was declared the winner. Investors are convinced that companies linked to the president's politics and entourage will thrive with his support.

A New Turn for Crypto?

"This is clearly linked to Trump, who has already shown his attitude towards this industry. This can only promise increased demand for both crypto stocks and the coins themselves," said Nick Tweedale, chief market analyst at ATFX Global in Sydney.

Rushing to the Top: Bitcoin on Track for New Highs

The fact that Bitcoin is trading near its all-time highs amid the election results means "it has a clear sky over its head," experts say. During his campaign, Trump promised to make the US the "cryptocurrency capital of the world" and even proposed creating a national Bitcoin reserve.

It is not yet known how realistic these initiatives are, but such statements have already provoked a sharp jump in demand for shares of companies related to mining and crypto trading.

Bitcoin as a strategic asset: the world is watching the crypto race

"This opens the way for other countries to also start buying up Bitcoin to overtake the US," said Matthew Dibb, chief investment officer of the crypto fund Astronaut Capital. His opinion reflects the ambitions of a number of countries that see Bitcoin as a promising asset for accumulation and strengthening their position in the global financial arena.

Riot Platforms and MARA Holdings continue to grow amid crypto euphoria

Shares of the mining company Riot Platforms soared by 17% during evening trading on Wall Street, and then gained even more after the close of the exchange. Other major crypto mining players, such as MARA Holdings (MARA.O) and CleanSpark (CLSK.O), also saw significant gains, up nearly 30%. This rise demonstrates growing confidence among investors that crypto assets and their mining infrastructure will be under favorable policies of the next administration.

MicroStrategy Increases Its Bitcoin Holdings by Billions

MicroStrategy (MSTR.O), a company known for its large investments in Bitcoin, announced the purchase of the cryptocurrency worth about $2 billion between October 31 and November 10. Against this background, the company's shares rose by 26%, continuing to strengthen during evening trading. This decision by MicroStrategy underscores the confidence of major companies in Bitcoin as a strategic reserve.

Euphoria has engulfed the entire crypto market

In the wave of general optimism, other cryptocurrencies also showed noticeable growth. Among them are ether and the popular "meme currency" dogecoin, which have also risen on expectations of more liberal regulation. Investors are anticipating a relaxation of regulatory pressure, especially if Trump replaces current SEC Chairman Gary Gensler, as he promised in his platform.

Bitcoin as a Politically Advantageous Asset

"Today's rise in Bitcoin is not just about numbers. It's a signal that the market is starting to perceive it as a stable and even politically advantageous asset," said Justin D'Anethan, head of business development at Keyrock, a digital marketplace development company in the Asia-Pacific region. His comment underscores a new view of cryptocurrency as not only a speculative instrument, but also as a store of value and political influence in the global economy.

These events and strategic decisions by the crypto industry are creating a new level of interest in Bitcoin and its potential role in geopolitics, attracting more participants and institutional investors.

All eyes on inflation: Key data investors are awaiting

Investors are holding their breath ahead of Wednesday's consumer price inflation data, which, along with a host of other key economic indicators, could provide clues as to where monetary policy is headed next.

Rate cuts: heading into December

The Federal Reserve cut interest rates by 25 basis points last week. Interest rate futures suggest traders are pricing a 65% chance of a second cut at the December meeting, according to CME FedWatch data. Investors are watching the market closely to gauge the central bank's next move.

Fed's cautious approach amid inflation risks

"With the U.S. economy continuing to show resilience and the risk of renewed price pressures remaining, the Fed will need to tread carefully," said Seema Shah, chief global strategist at Principal Asset Management. This statement highlights the balance that the regulator must maintain between maintaining economic growth and controlling inflation.

Growth Prevails: Stocks Are on the Rise

The S&P 500 Index is seeing gainers outnumber losers by 1.5 to 1, highlighting the continued positive sentiment in the market despite economic uncertainty.

New Highs in Stock Markets

The S&P 500 Index posted 117 new highs and just 7 new lows, while the Nasdaq was even more impressive, with 363 new highs and 86 new lows. These numbers show investor optimism and a willingness to rally even in the face of a cautious Fed.

Investors continue to watch economic data for signs of what the Federal Reserve will do in the coming months.

Desarrollado por un Thomas Frank
experto de análisis de InstaForex
© 2007-2024

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