U.S. stocks experienced a surge, with the Dow Jones Industrial Average surpassing 44,000 points and the S&P 500 nearing the 6,000 mark. Investors are assessing the potential impact of the Republican Party controlling both the Senate and the House, alongside the Federal Reserve's recent rate cut and future monetary policy decisions.
The Dow rose by 250.98 points, or 0.57%, reaching 43,980.32. The Nasdaq increased by 5.29 points, or 0.03%, to 19,274.75. The S&P 500 gained 22.90 points, or 0.38%, achieving 5,996.00.
The three major indices hit record intraday highs after the U.S. presidential election results, spurred by expectations of deregulation and tax cuts potentially boosting economic growth. For the week, the S&P 500 is up approximately 4.3%, the Dow by 4%, and the Nasdaq by 5.6%.
Analysts suggest that the current bull market is still in its early stages, with significant growth anticipated during Trump's presidency. Expectations for deregulation could enhance corporate profits, while a Republican sweep is viewed as favorable for the stock market.
The Federal Reserve announced a cut in the federal funds rate by 25 basis points, with a cautious outlook on future rate changes. Although inflation concerns persist, the Fed expressed confidence in the American economy. Speculation remains over whether another rate cut might occur in December.
Key stocks highlighted include Nvidia (NVDA, Financial), which recently achieved a $3.652 trillion market cap, leading the global market. Analysts from Goldman Sachs have reiterated their "buy" rating for Nvidia, citing improvements in AI infrastructure as a growth driver.
Tesla (TSLA) introduced leasing options for its Cybertruck model, aiming to boost sales. Meanwhile, AMD (AMD) gained market share in the x86 processor market, while Amazon (AMZN) considered further investment in AI startup Anthropic.
TSMC reported slower revenue growth due to AI chip demand concerns, while Airbnb and Monster Beverage delivered below-expectation financial guidance and earnings.
HSBC announced upcoming job cuts as part of restructuring efforts.
