(Bloomberg) — U.S. stocks were poised to test new highs as Tesla Inc. and crypto companies soared on speculation they would benefit from President Donald Trump’s inauguration.
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S&P 500 index contracts rose 0.5% and Nasdaq 100 index contracts rose by a similar amount after the index hit its 50th all-time high of the year on Friday. Tesla rose about 7% in pre-market trading as the market capitalization of Elon Musk-owned EV maker once again exceeded $1 trillion. Analysts are expecting further gains, with Wedbush’s Dan Ives predicting the stock will rise more than 20% next year.
Bitcoin has surpassed $82,000 for the first time, Congress is likely to include many pro-crypto members, and crypto-related stocks have also risen. The dollar rose 0.5% against a basket of currencies, extending its six-week winning streak.
Benjamin Melman, chief investment officer at Edmond de Rothschild Asset Management, said U.S. stocks could rise another 3% to 5% as the so-called Trump trade gets underway.
“We see no trigger for a decline in U.S. stocks, and the rally could continue through the end of the year,” Melman said.
Investors are currently focused on news regarding the composition of the next administration, with President Trump expected to narrow down his shortlist for Treasury Secretary this week. Money manager Scott Bessent, who is running for the position, reportedly met with Trump on Friday, but the meeting was not an interview for him, according to a person familiar with the process.
Inflation data released on Wednesday will also be key for markets to glean clues about the Fed’s interest rate trajectory, with annual inflation expected to accelerate slightly to 2.6% in October. Traders also listen to Fed policymakers speak after Minneapolis Fed President Kashkari suggested over the weekend that interest rate easing could be slower than previously expected due to the strong economy. Probably.
President Donald Trump’s pledge to impose hefty tariffs on trading partners weighed on European stocks, while the Stoxx 600 index rebounded after three weeks of losses. The index rose 0.9%, with all industry groups included in the index gaining, as a series of strong corporate earnings, including German tire maker Continental AG and insurance company Hannover Re, lifted the mood.
The possibility of snap elections in Germany is also seen as positive, especially if the new government agrees to increase spending to support the economy.
Broad-based dollar strength continues to weigh on many assets, including the euro, which has fallen to a six-month low against the dollar. Oil prices also extended their biggest decline in nearly two weeks, while gold fell further after last week’s 2% drop.
This week’s main events:
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Japan’s current account balance, Monday
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Danish CPI, Monday
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Norwegian CPI, Monday
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United Nations climate change conference, COP29, begins on Monday
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German CPI, Tuesday
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UK unemployment insurance claims, unemployment rate, Tuesday
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Fed speakers including Christopher Waller Tuesday
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Japanese PPI, Wednesday
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Eurozone industrial production, Wednesday
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US CPI, Wednesday
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Australian unemployment rate Thursday
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Eurozone GDP, Thursday
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US PPI, unemployment claims, Thursday
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Reserve Bank of Australia Governor Michelle Bullock speaks on Thursday
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Federal Reserve Chairman Jerome Powell speaks on Thursday
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ECB President Christine Lagarde speaks on Thursday
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BOE Governor Andrew Bailey speaks on Thursday
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Japan’s GDP, industrial production, Friday
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China retail sales, industrial production, fixed asset investment, Friday
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UK GDP, industrial production, trade balance, Friday
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US retail sales Friday
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Alibaba earnings Friday
Some of the main movements in the market are:
stock
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As of 12:43pm London time, the Stoxx European 600 was up 1.2%.
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S&P 500 futures rose 0.4%
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Nasdaq 100 futures rose 0.4%
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Dow Jones Industrial Average futures rose 0.4%.
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MSCI Asia Pacific Index falls 0.9%
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MSCI Emerging Markets Index falls 0.9%
currency
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Bloomberg Dollar Spot Index rose 0.5%
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The euro fell 0.5% to $1.0660.
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The Japanese yen fell 0.7% to 153.77 yen to the dollar.
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The offshore yuan fell 0.2% to 7.2187 yuan to the dollar.
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The British pound fell 0.2% to $1.2889.
cryptocurrency
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Bitcoin rose 3% to $82,359.56
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Ether rose 0.4% to $3,185.08
bond
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The 10-year government bond yield was almost unchanged at 4.30%.
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Germany’s 10-year bond yield fell 2 basis points to 2.35%.
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The UK 10-year bond yield rose 1 basis point to 4.45%.
merchandise
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Brent crude oil fell 1.7% to $72.60 per barrel.
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Spot gold fell 0.9% to $2,661.88 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Kit Rees.
(An earlier version of this article corrected the currency conversion in the second paragraph.)
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