The Dow Jones Industrial Average gained nearly 1% to 44,426, the S&P 500 added 0.34% to 6,015 and the Nasdaq Composite rose 0.11%, to 19,308
Wall Street traders on Monday started a busy week by extending last week’s stock rally, while oil prices dropped and bitcoin raced to a new record high.
The Dow Jones Industrial Average gained nearly 1% to 44,426, the S&P 500 added 0.34% to 6,015 and the Nasdaq Composite rose 0.11%, to 19,308.
Stocks head towards year-end on a solid footing, with the benchmark S&P 500 index nearly 26% higher year-to-date as AI enthusiasm and the start of Fed rate cuts support an upbeat outlook.
Focus will be on U.S. CPI data on Wednesday as well as a flurry of other data this week for more indications on the health of the economy and the outlook for interest rates.
The dollar traded not far from last week’s four-month high versus other major currencies, with several Fed speakers also due to speak this week, including Chair Jerome Powell on Thursday.
Investors expect Trump’s second term in office will bring equities-boosting tax cuts and looser regulations.
Scott Bessent, a hedge fund manager, Trump supporter, and top contender to be Treasury Secretary, wrote in an opinion piece on Sunday that surging markets were signalling expectations of higher growth, lower volatility and inflation, and a revitalized economy for all Americans.
Trump’s victory and pro-crypto candidates being voted to Congress has pushed bitcoin to the new all-time high above $82,370 spurred on by expectations of a lighter regulatory environment. Bitcoin last traded near $82,300.
MSCI’s gauge of stocks across the world added 0.1%. European stocks also rallied on Monday. The pan-European STOXX 600 rose 1.15%.
The euro skidded to its lowest level in 6-1/2 months against the dollar on Monday as investors worried about possible U.S. tariffs that would hurt the euro area’s economy.
The currency was 0.6% lower at $1.0653.
U.S. bond markets were shut on Monday for Veterans Day.
Lisa Shalett, CIO for Morgan Stanley Wealth Management, wrote in a note Monday that while equity investors have been bullish on the new Trump administration, “it has been less joyous for bond investors, with yields backing up sharply midweek over concerns around unfunded tax cuts and the inflationary impact of proposed tariff and immigration policies.”
