U.S. stocks edged higher, continuing an election-fueled rally that pushed all three major indexes to record highs, on Monday, Nov. 11. The S&P 500 climbed 0.1%, boosting its year-to-date gain to 26.5%. The Dow Jones Industrial Average rose 0.7%, while the Nasdaq composite inched up 0.1%, bringing its YTD gain to a stellar 30.7%.
Meanwhile, Bitcoin soared 10.1% to a new all-time high of $88,930.90, contributing to a global cryptocurrency market cap that surpassed $3 trillion for the first time since 2021.
On Tuesday, U.S. stocks declined as the post-election rally lost steam, with the S&P 500 and Nasdaq snapping their five-day winning streaks. The S&P 500 slipped 0.3%, the Dow dropped 0.9% and the Nasdaq edged down 0.1%.
Meanwhile, U.S. Treasury yields surged to post-election highs, with the 10-year yield rising 12.3 basis points to 4.4%. By these points, markets awaited the release of October’s Consumer Price Index report, which could influence the Federal Reserve’s next moves.
U.S. stocks remained largely flat on Wednesday, as investors processed the latest CPI report. The S&P 500 ended unchanged, the Dow ticked up 0.1%, and the Nasdaq slipped 0.3%. Traders raised the odds of a 25 basis-point December rate cut to 80%, further influencing market sentiment. Meanwhile, Bitcoin climbed 0.5% to $88,832.64, extending its triple-digit YTD rally. Overseas, the FTSE 100 closed at its lowest level since August, while the British pound continued its slide hitting fresh lows against the dollar.
U.S. stocks declined Thursday as Federal Reserve Chair Jerome Powell expressed caution regarding additional rate cuts. The S&P 500 and the Nasdaq both fell 0.6%, while the Dow dipped 0.5%. Traders lowered the probability of a 25 basis-point December rate cut to 62%. In Europe, natural gas futures climbed to their highest levels in a year amid concerns over Russian supply. Meanwhile, gold hovered near a two-month low, closing at $2,570.60 per ounce.
By Friday, U.S. stocks retreated as investors weighed the Fed’s advisement, alongside fresh economic data. The S&P 500 fell 1.3%, while the Nasdaq dropped 2.2%, and the Dow declined 0.7%. Gold experienced its worst week in three years, closing at $2,567.40 per ounce, down 0.1%. Oil prices slid 2.4% to $66.95 per barrel, deepening their YTD loss to 6.6%. Meanwhile, the dollar marked its strongest week since September, as the 10-year Treasury yield inched up to 4.445%.
This week, U.S. markets experienced a rollercoaster of highs and lows, driven by a post-election fueled rally, critical economic data and shifting Fed expectations. While Monday saw major indexes hit record highs, momentum faded midweek as CPI data and cautious remarks from Powell tempered optimism.
By Friday, hawkish Fed comments and weaker-than-expected data pressured equities further, capping a volatile week. As markets navigate these crosscurrents, investors should remain adaptable and eye macroeconomic developments to maintain a diversified strategy.
