The DOW JONES rose 0.57% to 44,240.88 points, while the S&P 500 rose 0.35% to 6,016.49 points. The NASDAQ rises 0.39% to 19,361.62 points.
This Monday’s movements follow a winning week for Wall Street, in which the three major indices closed at all-time highs. The DOW JONES, which at times surpassed 44,000 points (44,157.29 at its intraday highs), registered its best week since November last yearwith a rise of more than 4% until ending the week at 43,988.99 points.
The S&P 500 also rose more than 4% to a record high of 5,995.54 points, reaching 6,012.45 points. The NASDAQ rose more than 5% in the week, although Friday was the most moderate, and reached a maximum of 19,286.78 points.
A large portion of the week’s gains came on Wednesday, when the Dow rose 1,500 points after Donald Trump won the presidential election. Traders also closely followed the Federal Reserve’s policy announcement on Thursday, with a 25-point cut in interest rates.
“Investors hate uncertainty and, with the election decided, markets now have clarity and can put aside fears of a contested election,” explains Northern Trust chief investment officer Katie Nixon in a note to clients collected by CNBC. “Investors can now focus their attention on what matters most to markets: economic and corporate fundamentals.”
On the macroeconomic agenda, no relevant macroeconomic references are expected this Monday, although during the week we will have to pay attention to inflation data. The main event for investors will be the publication on Wednesday of the US consumer price index (CPI) for October. It is expected that this index has rebounded in its general reading from 2.4% to 2.6% and that its underlying reading will remain at 3.3%, still very far from the Fed’s 2.0% objective. On Thursday the production price index (IPP), also for October, will be known.
In the business field, one of the main players in the market continues to be Tesla, which soared 7.28% in the New York morning after returning to the trillion-dollar market capitalization club on Friday. Shares of the company led by Elon Musk have risen 30% since Tuesday’s close, before the election results, and are already skyrocketing 120% from their annual lows.
At the same time, short hedge funds that bet against Tesla have lost $5 billion following Donald Trump’s victory in the presidential election.
Cryptocurrency-linked stocks also see strong gains after the Bitcoin has surpassed $82,000. Coinbase soars 14.8%, while bitcoin mining companies Mara Holdings and Riot Platforms add 16% and 11.4%, respectively.
Health insurance giant Cigna soars 7.5% in opening trading after saying it will not seek a merger with Humana, also reiterating its fiscal guidance for 2024 and 2025. The company has clarified that it will only consider acquisitions that are “strategically aligned, financially attractive and have a high probability of closing.” Humana shares fall 5.25%.
Regarding analyst recommendations, Cisco Systems rose 1.24% in the New York morning after JP Morgan raised its advice to ‘overweight’, from the previous ‘neutral’. The firm expects the company to revise its profits upwards thanks to the recovery cycle in demand for enterprise networks.
Analyst Samik Chatterjee raises his price target from $55 to $66 per share, with a 14% upside potential compared to current levels. Cisco is up 15% so far this year.
Meanwhile, Morgan Stanley has reiterated its ‘overweight’ recommendation for Dell Technologies. Raising the price target to $154, up from $136 previously. The new valuation represents a potential of 15% compared to Friday’s close. As a catalyst, analyst Erik Woodring points to strong momentum in Dell servers. The analyst believes the company’s AI server prospects appear stronger than previously estimated for the second half of 2025 and could rise to $20 billion in 2026.
As for the results season, this Monday Live Nation, the parent company of Ticketmaster, as well as the food and facilities service provider Aramark will present their accounts.
In raw materials markets, oil prices fall sharply this Monday. On the supply side, the threat of supply interruptions due to the passage of a storm in the Gulf of Mexico seems to be fading, while on the demand side the announcements made by China this weekend do not seem enough to boost fuel demand.
Oil consumption in China, the driver of global demand growth for years, has barely grown in 2024 as its economic growth has slowed, while gasoline use has declined with the rapid growth of electric vehicles and Liquefied natural gas has replaced diesel as a truck fuel.
West Texas futures fell 2.73% to $68.46 per barrel, while European benchmark Brent fell 2.53% to $72.
Another factor that is weighing on oil is the strength of the dollar after Trump’s victory. Today the euro falls another 0.59% against the greenback, leaving the exchange rate at 1.0653 dollars for each single currency.
Gold is also falling and moving further away from its highs, with a drop in its spot variety of 2.10% to $2,638.30 per ounce.