Wall St. rolls higher as bitcoin bursts above $87K
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.
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Stocks of companies more focused on the
They helped offset a drop of 1.6% for Nvidia, which was the heaviest weight on the market.
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 Nvidia packs a particularly heavy punch because its massive value of nearly
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
"While near-term seasonality will be a strong tailwind for markets, valuations may prove to be a tipping point as we move into 2025."
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