Stock market today: both the Dow and S&P 500 finished above significant milestones, extending the momentum from a strong post-election rally. The "Trump trade" dominated market sentiment once again, with Bitcoin (BTC-USD) approaching $87,000 and Tesla (TSLA) shares soaring for the fifth consecutive day.
Dow Hits 44,000 Milestone as Market Rallies on Trump Tax Hopes and Fed Rate Cut
The Dow Jones Industrial Average (^DJI) led the rally, rising nearly 0.7% to close above 44,000 for the first time in history, while the S&P 500 (^GSPC) finished above the 6,000 mark. Both indexes are coming off their best week of the year, buoyed by record highs.
In contrast, the tech-heavy Nasdaq Composite (^IXIC) ended the day just above breakeven, as major tech stocks like Nvidia (NVDA), Apple (AAPL), and Meta (META) underperformed.
Small-cap stocks also saw gains, with the Russell 2000 (^RUT) reaching its highest level since November 2021.
The markets opened on Veterans Day near record highs, driven largely by optimism surrounding expectations of lower corporate taxes and deregulation under President-elect Donald Trump. Additionally, the Federal Reserve's recent interest rate cut helped support positive sentiment.
Bitcoin surged to a new all-time high, fueled by growing optimism for a crypto-friendly Trump administration and Congress. Smaller digital currencies like Dogecoin (DOGE-USD) also saw gains, as traders bet on Trump's pledge to make the U.S. a global leader in crypto.
This positive sentiment spilled over into crypto-related stocks, extending the sharp gains seen since the election. Coinbase (COIN) soared more than 20%, while Robinhood (HOOD) climbed over 10%.
Tesla shares, another key "Trump trade" beneficiary, surged more than 8%. The electric vehicle maker's stock closed at its highest level in over two years on Friday, surpassing a $1 trillion market value. This rally was fueled by growing optimism surrounding CEO Elon Musk's favorable relationship with the incoming president.
Analysts at Wedbush reiterated their outperform rating on the stock, joining earlier sunny outlooks reacting to Tuesday’s results. Tesla recently reclaimed its $1 trillion market cap after surging nearly 30% last week.
“We are raising our price target on Tesla to $400 from $300 as we believe the Trump White House win will be a gamechanger for the autonomous and AI story for Tesla and Musk over the coming years,” the Wedbush analysts wrote.
Since Trump's decisive electoral win, Elon Musk's wealth has soared past $300 billion, solidifying his status as the world's richest person. His fortune has grown alongside the broader surge in tech and crypto stocks following the post-election rally.
It remains uncertain whether Musk, who contributed at least $130 million to Trump's campaign, will receive an official role in the incoming administration or if he will exert influence on policy decisions from behind the scenes.
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