Stock market today: Wall Street rolls higher as bitcoin bursts above $87,000
The S&P 500 edged up by 0.1%, coming off its best week of the year following Trump’s victory and a cut to interest rates by the
Several pieces of what’s known as the “Trump trade” also helped drive the market, as investors try to identify which companies will be winners under a second Trump term.
A
Stocks of companies more focused on the
They helped offset a drop of 1.6% for
Such Big Tech stocks have rocketed higher on excitement about artificial-intelligence technology, and they had been gaining almost regardless of what the economy was doing. Now, though, critics say their prices look too expensive, and investors are finding more interesting buys among companies that could benefit more from Trump’s second term.
A drop for
AbbVie, meanwhile, tumbled 12.6% after saying trials investigating its treatment for some adults with schizophrenia failed to show statistically significant improvement compared with a placebo group at week six.
Some of the sharpest swings were in the crypto market, where bitcoin rose above
Another Trump trade has been a rise in
But Trump’s win has scrambled expectations for coming cuts to rates. Traders have already begun paring forecasts for how many the Fed will deliver next year. While lower rates can boost the economy, they can also give inflation more fuel.
Still, many professional investors warn not to get carried away by all the big swings following Trump’s victory. It takes time to see what campaign promises turn into actual policy, and that can lead to snaps back for the market’s initial knee-jerk reactions.
The
“Valuations are increasingly elevated, and the pace of growth isn’t sustainable,” according to
All told, the S&P 500 rose 5.81 points Monday to 6,001.35. The Dow gained 304.14 to 44,293.13, and the Nasdaq composite added 11.99 to 19,298.76.
Stock markets abroad have swung following Trump’s election amid worries about increased tariffs and disruptions to global trade. They were mixed Monday, with European indexes rising while South Korea’s and Hong Kong’s sank.
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AP Writer
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