Bitcoin and banking stocks surge, fuelled by optimism around Trump's win and potential deregulation
On Monday, the Dow Jones Industrial Average surged over 300 points, closing at a record high above 44,000 for the first time as its postelection rally continued, according to CNBC.
The 30-stock Dow climbed by 304 points, or 0.69 percent, to reach 44,293.69. Both the S&P 500 and the Nasdaq Composite also closed at new highs, with the S&P 500 gaining 0.1 percent to end at 6,001.35 and the Nasdaq Composite inching up 0.06 percent to 19,298.76.
JPMorgan Chase and Goldman Sachs led the Dow’s gains, with increases of 1 percent and 2.2 percent, respectively, while shares of Bank of America and Citigroup both rose by around 2 percent.
Banking stocks have shown sharp gains following Donald Trump’s election victory, as investors anticipate possible regulatory easing for the sector under his administration.
Elsewhere, meme stock favourite GameStop jumped by 10 percent.
Tesla saw a notable rise of over 9 percent, continuing its postelection momentum.
However, other large technology stocks trended downward, with Apple declining nearly 2 percent and Microsoft and Amazon each dropping by around 1 percent. Small-cap stocks also advanced, as the Russell 2000 climbed by 1.47 percent.
Bitcoin rose above US$87,000, driven by expectations of deregulation. Related crypto stocks Coinbase and Mara Holdings surged by 20 percent and 30 percent, respectively.
In a Monday note, Morgan Stanley Wealth Management chief investment officer Lisa Shalett remarked that “the Republicans’ decisive win has ignited ‘animal spirits,’ despite already lofty expectations.”
Shalett described the rally as “sentiment and liquidity-driven positioning,” indicating that Morgan Stanley would maintain a balanced stance rather than interpret the developments as a shift toward a “reflationary, no-landing scenario.”
