Investors continue to funnel capital into U.S. stocks, driving the market to new heights in the aftermath of President-elect Donald Trump’s unprecedented victory. The Dow Jones Industrial Average posted its 43rd record of the year, closing above the 44,000 mark for the first time in history.
Meanwhile, the S&P 500 closed above 6,000 for the first time, marking its 51st record close of the year. The Nasdaq, which is known for its technology-heavy composition, also achieved a notable milestone with its 32nd record close.
Among the sectors driving market gains were consumer discretionary, financials, and industrials. In contrast, real estate, healthcare, and technology stocks saw modest declines.
Trump’s win, which secured both the popular and electoral votes, was built on a platform that emphasized pro-business policies, deregulation, tax cuts, and a smaller government. His administration’s approach is anticipated to create significant market shifts as he begins assembling his team. Key appointments announced include former New York Representative Lee Zeldin as the Environmental Protection Agency (EPA) administrator, Tom Homan as border czar, and Representative Elise Stefanik as U.S. Ambassador to the United Nations.
Cathie Wood, founder of Ark Invest, believes Trump’s administration may have a greater economic impact than the Reagan-era reforms of the 1980s. In a recent statement, Wood outlined that Trump’s emphasis on deregulation, government spending cuts, tax reductions, and technology-driven innovation could provide a powerful economic boost, potentially outpacing the effects of the Reagan Revolution.
One of the most notable beneficiaries of this market optimism is Tesla, led by close Trump ally Elon Musk. The electric vehicle giant surged another 9%, pushing its market capitalization beyond $1 trillion. Wedbush analyst Dan Ives raised his price target for Tesla to $400, citing expectations that the Trump administration will fast-track key technologies, such as autonomous driving and artificial intelligence, clearing regulatory hurdles that had slowed progress in recent years. Ives forecasts that Tesla’s market cap could reach $2 trillion within the next 12 to 18 months.
The Trump victory also sent bitcoin prices soaring, with the cryptocurrency hitting an all-time high of $88,000, adjusting for inflation. Investors are anticipating favorable policies toward cryptocurrencies under the incoming administration. According to Natalie Brunell, host of the “Coin Stories” podcast, the market now expects the U.S. to adopt pro-crypto measures, potentially even buying bitcoin itself. Brunell emphasized that bitcoin is no longer just a passing trend, but a permanent fixture in investment portfolios and national reserves.
The bitcoin surge has also benefited companies in the cryptocurrency space, such as MicroStrategy, Coinbase, and Robinhood, as the digital asset market continues its upward trajectory under a favorable political climate.
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