4:20pm: Post-election rally not slowing down
The Dow Jones and S&P 500 reached record highs on Monday, continuing a strong post-election rally driven by the so-called "Trump trade."
The Dow rose nearly 0.7% to close above 44,000 for the first time, while the S&P 500 surpassed 6,000. The tech-heavy Nasdaq closed just above the flat line.
Bitcoin approached $87,000, and Tesla shares climbed for a fifth consecutive session.
Small-cap stocks performed well, pushing the Russell 2000 to its highest level since November 2021.
2:55pm: ‘Trump train’ and strong earnings keep markets afloat
US markets were still strong on Monday afternoon, although the Nasdaq rally had stalled.
"The prospect of a Republican clean sweep continues to energise investors, and with earnings growth still healthy, investors are also looking forward to a fresh burst of M&A and IPOs that will provide fresh flows to US markets," Chris Beauchamp, Chief Market Analyst at online trading platform IG wrote.
"The Trump train rumbles on."
1:50pm: Inflation concerns grow as October CPI release nears
Analysts are divided on how President-elect Trump’s policies might impact inflation.
Following Trump’s election victory, the US 10-year Treasury yield spiked, hinting that his low-tax, high-tariff policies could weaken the US dollar. However, the US Dollar Index (DXY) also rose, signaling short-term optimism for the dollar.
Wells Fargo projects a slight rise in October’s Consumer Price Index (CPI), with annual inflation reaching 2.5% and core inflation holding steady at 3.3%.
Falling gas prices may ease headline inflation, though geopolitical tensions could keep energy costs elevated.
The October CPI report is set to release Wednesday.
12:20pm: Trump trade boosts Dow; Nasdaq falters
The Dow surged over 400 points on Monday, or 0.8%, continuing a post-election rally, while the S&P 500 edged up 0.2%. However, the tech-heavy Nasdaq Composite struggled, dipping 0.1% below the flatline as key tech stocks like Nvidia, Apple, and Meta lagged.
Tesla shares rose for the fifth consecutive session, gaining 10% and pushing its market cap past $1.1 trillion on hopes it will benefit under the Trump administration.
Trump Media & Technology Group stock rose 2% following a 15% jump on Friday after Donald Trump announced he would retain his shares, holding a 60% stake.
Bitcoin also hit a record high near $85,000, boosting crypto-related stocks.
11:15am: Rate cut hopes fall
The probability of another rate cut in January fell from over 60% to under 24% on Monday, according to the CEM FedWatch Tool.
The Fed will likely continue cutting rates in December, with a 68% chance of a quarter point cut, however.
Markets are buying the more optimistic narrative and continuing to push higher amid unprecedented momentum, Samer Hasn, Senior Market Analyst at XS.com noted.
Nowhere is that more evident than in Bitcoin, which hit a new high of $81,943, as part of its seventh consecutive day of gains.
"Bitcoin’s gains come amid continued bullish momentum fueled by Donald Trump’s re-election, in light of his promises of a more lenient regulatory environment for cryptocurrencies and support for their adoption," Hasn commented.
"The favorable economic outlook also created by the Federal Reserve’s recent interest rate cut and his talk of a strong economy is boosting the risk appetite that Bitcoin needs to keep its upward trend intact."
9.55am: Russell 2000 rockets, Nasdaq flat at open
US stocks have mostly opened the week higher.
The Dow Jones has climbed 0.9% and the S&P 500 has inched up 0.2%, but the tech-heavy Nasdaq Composite has fallen slightly, down less than 0.1% though.
US small-cap shares are continuing to thrive since the election, with the Russell 2000 up another 1.85%.
Holding the Nasdaq back is a 10.5% fall for Super Micro Computer, with other microchip sector names also in the red, including ARM Holdings, NXP Semiconductor, Micron and AMD.
Nasdaq Risers are led by Tesla, up another 8.1%, while Salesforce and Goldman Sachs are topping the Dow, up 3.8% and 2.75%.
7.40am: Dow Jones and Russell set to extend gains at Trump trade continues
US stock futures are indicating another up-day on Wall Street as markets continue to re-price for a looming second presidency for Donald Trump.
The US bond market will be closed for the Veterans' Day holiday but stock markets will be open, with rises of above 0.4% for each of the S&P 500, Nasdaq and Dow Jones futures.
Russell 2000 futures were up 1.3%, having already gained over 8% since a week ago.
US banks all gained over 1% pre-market, while other more-Trump adjacent names were up even higher, with Tesla Inc (NASDAQ:TSLA) rising 7% pre-market to what will be a two-and-a-half-year high and Trump Media & Technology Group Corp set to add another 9% too.
Crypto markets are where the bigger movers are, with exchange operator Coinbase Global Inc (NASDAQ:COIN) up 16%, bitcoin investor MicroStrategy Inc poised to jump another 11%, and Robinhood Markets Inc (NASDAQ:HOOD) 7%.$32.76
Bitcoin is up 3.6% over the past 24 hours and almost 20% higher over the past week to $82,337, with dogecoin up 18% to $0.2899 (where a big fan is a certain Trump-supporting E Musk), up 84% over the past week.