Trader Walter Lundon displays a shirt bearing the image of U.S. President-elect Donald Trump on the trading floor of the New York Stock Exchange (NYSE) on November 6, 2024.
Timothy A. Clary | AFP | Getty Images
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
US Index Milestones
All major U.S. indexes Friday’s rise. During the trading session, S&P 500 Index Briefly traded above 6,000 points Dow Jones Industrial Average Breaking through 44,000 points is a new milestone for both parties. European regional Stoke 600 Down 0.65%. The index is dragged down by mining stocksfell 4.2%, with shares in luxury companies including Richemont also falling dry and Burberry.
China Inflation and Support Plan
China’s consumer price index in October Annual growth of 0.3%according to data from the National Bureau of Statistics. A Reuters poll of economists had expected prices to rise 0.4%, the same as September’s figure. On Friday, China announced a five-year 10 trillion yuan ($1.4 trillion) package Solve the local government debt problem.
Bitcoin new record
Bitcoin Shares rose 5.4% to $80,398.24, according to Coin Metrics. This is a first for cryptocurrencies Has exceeded the US$80,000 mark. Traders believe Bitcoin will soar higher. they piled up more than $2.8 billion enters options marketbetting that the price of Bitcoin will exceed $90,000.
Tesla’s market cap is $1 trillion
Tesla’s Market value exceeds US$1 trillion On Friday after last week’s encouraging rally, Donald Trump’s victory ignitedpushing its stock price up 29%. It’s up 30% so far this year. Meanwhile, CEO Elon Musk endorsed Senator Mike Lee’s proposal to allow the president Interference in Fed policy.
(PRO) Watch Inflation Data
After a fiery week for stocks, spurred by Trump’s election as the next U.S. president and the Federal Reserve’s 25 basis point interest rate cut, Inflation data this week will determine whether the market boom can be sustained. CNBC Pro’s Sarah Min recaps what happened last week and what’s ahead for this week.
bottom line
When the numbers are this good, you have to start with them.
This week, S&P 500 Index up 4.66% Dow Jones Industrial Average Up 4.61%, NASDAQ Composite Index Soared 5.74%. If this sounds impressive, consider this: Small Caps Russell 2000 A surge of 8.57%.
The market has Trump to thank for this.
“Stocks are eager to digest Trump’s domestic growth policies,” Barclays strategist Venu Krishna said in a note to clients.
This is The huge bulge in Russell 2000 Compared with other indicators. Smaller companies tend to be Closer ties with the domestic economywhich is the focus of Trump’s promise.
Small-cap companies also have more floating-rate debt. With the Federal Reserve cutting interest rates by 25 basis points on Thursday, small-cap stocks will have less debt burdens, leading to higher profits.
However, the road ahead may not be so smooth.
Of the S&P companies reporting this earnings season, 84% beat profit estimates. But their earnings were “more subdued, and the percentage of companies beating sales expectations remains low,” JPMorgan strategist Mislav Matejka wrote in a note on Friday. Fundamentally, profit is what drives the stock market.
The economy may also experience some slowdown. Barclays said policies proposed by Trump, such as higher tariffs and stricter immigration, could reduce economic growth and increase inflation, or at least slow the pace of deflation.
Minneapolis Fed President Neel Kashkari also expressed caution about continued inflation. If tariffs become ‘tit-for-tat’, Kashkari said in the interview On Sunday, “that’s where it’s more concerning.”
In response, the Fed may further cut interest rates.
While Trump’s rally has gotten off to a good start, it remains to be seen when it will end — and more importantly, how.
—CNBC’s Sean Conlon, Yun Li, Jesse Pound and Hakyung Kim contributed to this report.
