The Dow Jones gained 1.03%, the Nasdaq index lost 0.18% and the broader S&P 500 index gained 0.22%.
The New York Stock Exchange was trading in disarray on Monday, continuing to ride on the election of Donald Trump to the American presidency, which brought the indices to record levels.
Around 2:55 p.m. GMT, the Dow Jones gained 1.03%, the Nasdaq index lost 0.18% and the broader S&P 500 index nibbled 0.22%.
“It seems that the market will continue to rise thanks to the + Trump Trade +”, that is to say the anticipation of investors according to which a new Trump presidency will be positive for the stock market, commented Quincy Krosby, of LPL Financial .
The movement was further strengthened by the increasing likelihood of a Republican majority in both houses of Congress.
“The general belief is that the S&P 500 experiences its best performance in a context of political cohabitation, but a ‘red wave’ (Republican victory in the presidential election and majority in Congress) saw it progress by nearly 13% over the “next year,” noted Sam Stovall of CFRA.
“It is possible to argue that the market has gone too far, too fast, and that it needs consolidation, but when the momentum is there, it is not enough,” explained, in a note, Patrick O’Hare of Briefing.com.
This dynamic is encouraged by the fact that, on average, November is the best month of the year for stocks.
Five days after Donald Trump’s victory, the stocks considered to be the primary beneficiaries of this success continued their irresistible rise.
Tesla was the most noticed (+7.19%), due to the proximity between the president-elect and the boss of the car manufacturer, Elon Musk.
“We believe that a new mandate from Trump will be a game changer for Tesla and Musk in the coming years when it comes to autonomous driving and artificial intelligence,” commented analysts at Wedbush Securities.
They therefore believe that the American government should accelerate the issuance of regulatory authorizations for the electric vehicle manufacturer’s most advanced autonomous driving software.
Other companies sought after the election of the Republican candidate, the cryptocurrency players such as the exchange platform Coinbase (+13.94%) and Robinhood (+9.36%) or the “miners” (creators of digital currencies) Riot Platforms (+15.60%) or Marathon Digital (+17.40%).
The traditional financial sector also expects positive repercussions from a second Trump presidency, which should be favorable to it from a regulatory perspective.
After several sessions of high volatility, JPMorgan Chase (+1.90%), Goldman Sachs (+2.89%) and American Express (+1.62%) rose.
Less obvious, private prison operators also stood out, supported by the prospect of a more repressive presidency than its predecessor, like The GEO Group (+6.47%) and CoreCivic (+8.17%). .
The bond market was closed Monday due to the Veterans Day holiday.
No indicators are expected this session.
Operators are already looking ahead to the publication of the CPI consumer price index on Wednesday, the PPI producer price index on Thursday, but also retail sales and industrial production on Friday.
As in previous sessions, investors diversified their investments, to the advantage of the traditional economy and therefore the Dow Jones, but also medium and small stocks.
The Russell 2000 index, which brings together 2,000 SMEs, has gained more than 7% since the announcement of Donald Trump’s victory.
Elsewhere on the stock market, the Taiwanese semiconductor giant TSMC, listed in Taiwan and New York, let go (-4.11%) after several media outlets claimed that the American government had ordered it to stop deliveries of its most advanced chips in Chinese market.
Asked by AFP, the American Department of Commerce declined to comment. Also contacted, TSMC did not respond immediately.
