Stock market today: Trump rally slows with stocks at record highs ahead of new economic data
A stock trader at work at the New York Stock Exchange on February 24, 2020.
US stocks added to records on Tuesday, with the blistering rally since last week slowing slightly as traders prepared to take in new inflation data this week.
A five-day rally helped the Dow Jones Industrial Average and S&P 500 notch fresh closing highs on Monday, with many assets lumped into the Trump trade seeing a continued boost from the President-Elect’s victory.
Among them, bitcoin came close to hitting the $90,000 mark for the first time in early trading on Tuesday. The crypto industry expects to benefit from Trump’s friendly stance toward digital assets, with markets hoping for less regulation of the space.
The rally slowed as markets approached the October consumer inflation report. The consumer price index will be published on Wednesday, and Wall Street will be monitoring for any material shifts in inflation.
Economists expect a 2.5% year-over-year jump in CPI, compared to a rise of 2.4% in the prior month. Any meaningful surprise could upend expectations over the Federal Reserve interest rate cuts next months.
Here’s where US indexes stood at the 9:30 a.m. opening bell on Tuesday:
- S&P 500: 6,008.06, up 0.11%
- Dow Jones Industrial Average: 44,341.72, up 0.11% (+48.59 points)
- Nasdaq composite: 19,328.04, up 0.16%
Here’s what else happened today:
- The stock market’s Trump bump could end once Treasury yields reach 5%, JPMorgan says.
- Trump’s proposed trade war boosts chances of a US recession to 75%, according to BCA Research.
- Trump’s tax cuts could boost S&P 500 earnings by 20% over the next 2 years, Goldman Sachs says.
- A report says Russia is considering merging three oil firms into the world’s second-largest producer.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil rose 1.3% to $68.92 a barrel. Brent crude, the international benchmark, rose by 1% to $72.62 a barrel.
- Gold was about flat at $2,618 an ounce.
- The 10-year Treasury yield climbed five basis points to 4.367%
- Bitcoin rose 4% to $86,262.
