US Stocks Continue to Move Higher – Dow Hits Record up 0.7%
US stock markets continued to gain following the recent US election and yesterday’s Fed rate cut. While tech stocks didn’t fare as well, financials pushed the Dow to a new record close, gaining 0.72% on the day. Meanwhile, the S&P closed above 6,000 for the first time after adding 0.13%, and the Nasdaq edged up a modest 0.08% by the close. Cash treasury markets were closed for the bank holiday, but the dollar strengthened, with the DXY index rising 0.48% to finish at 105.51. Oil prices dropped again as a stronger dollar, combined with receding storm risks in the Gulf of Mexico, weighed on the market, with Brent falling 2.76% to $71.83 and WTI down 3.32% to $68.04. Gold also declined, losing 2.5% on the day to close at $2,617.95.
Trump Trade Surges Across Markets
The wave of market euphoria driven by Donald Trump’s victory shows no signs of abating, with record highs being set across several markets. Bitcoin surged to a new high overnight, as did the S&P and Dow, while the dollar now hovers near the levels seen immediately after the election. Conversely, Gold, Oil, and non-dollar currency bulls have been disappointed by recent moves. Traders are riding the current trend but remain cautious, as in volatile markets, even a small comment or update could lead to sharp corrections. Investors hope for calmer trading conditions in the coming days to help them adjust to the recent series of updates and make fresh calls—whether they’ll get this reprieve remains uncertain.
Trading Calendar Picks Up Today
Yesterday was a somewhat fragmented trading day, with bank holidays and a lack of macroeconomic data releases impacting market activity. However, all major centres are back today, and the event calendar is set to pick up. Although there is little scheduled in the Asian session, there will be a strong focus on UK markets at the London open with the latest employment figures. Following this, attention will shift to Germany, where the ZEW Economic Sentiment data is due before the first full US session of the week. While no major data releases are expected, several Fed speakers are scheduled, and markets will closely monitor their comments following last week’s 25-basis-point cut.
