FX168 Financial News (North America) #美股收评 #周五 (November 8), the three major stock indexes once again hit record highs. Driven by Donald Trump's entry into the White House and the Federal Reserve's latest interest rate cuts, the US stock market recorded its best performing week of the year on Friday.

The Dow Jones Industrial Average rose 0.59% to close at 43988.99 points, breaking 44,000 points for the first time in the intraday period; the S&P 500 rose 0.37% to close at 5995.54 points, breaking the 6000 intraday mark; the Nasdaq Composite Index, which accounts for a relatively high share of technology stocks, lagged behind. There was little change on the day, closing at 19286.78 points, but it also set its own intraday record.

(Source: FX168)

(Source: FX168)

Economic data

Preliminary reports show that US consumer confidence rose for the fourth month in a row to its highest level in six months.

The survey conducted by the University of Michigan before Tuesday's election also showed that inflation expectations for the next year fell to their lowest level since 2020.

“Trump” concept stocks

Some Trump-related stocks performed well again on Friday.

Tesla rose 8.19%, and the company's CEO Elon Musk ran for the fourth consecutive trading day with the president-elect. The automaker's market capitalization has broken through the $1 trillion mark.

The law enforcement technology stock Axon Enterprises rose 28.68%. After the company raised its full-year revenue forecast, the stock price rose.

Trump Media rose 15.22%, and the company's shares rose after the president-designate said he did not plan to sell his shares in the social media company.

Bank of America said that on the day Trump announced his victory in the election, the inflow of US equity funds reached 20 billion US dollars. Strategist Michael Hartnett said in a report quoting EPFR Global that this was the largest inflow of capital in five months.

Small-cap stocks — thought to benefit from Trump's protectionist stance — attracted the biggest inflow since March.

Market views

The Federal Reserve cut interest rates by a quarter of a percentage point on Thursday, which also boosted the stock market.

Federal Reserve Chairman Jerome Powell said at a press conference after interest rate cuts that he “feels good” about the economy.

Although some on Wall Street are worried about the stock market's valuation, this week's strong trend has strengthened confidence that there is room for growth in the last few months of this year.

Clark Geranen of CalBay Investments said that breaking 6,000 points in the S&P 500 “is an important psychological milestone and may cause more investors to be interested in stocks because there is still a large amount of money idle in money market funds and bonds.”

Although the stock market may have room to rise further after the election, Granin said he wouldn't be surprised if the stock market takes a breather before rising again at the end of the year.

The bond market

The 10-year US Treasury yield fell to 4.31% from 4.33% on Thursday evening. However, it is still well above the level of mid-September, when the yield was close to 3.60%.

The rise in US Treasury yields was due in large part to the fact that the resilience of the US economy far exceeded expectations. The Federal Reserve continues to cut interest rates to maintain the vitality of the job market. It is hoped that the US economy will continue to be stable, because the Federal Reserve has helped the inflation rate approach the 2% target.

Part of the reason for the rise in yield is also due to Trump. He talks a lot about tariffs and other policies. Economists think these policies may drive up inflation and US government debt while boosting economic growth.

In view of this, traders have begun to lower their predictions on how many times the Federal Reserve will cut interest rates next year. While interest rate cuts can boost the economy, they may also increase inflation.

Individual stocks in focus

Shares of AI darling Nvidia fell 0.84%. The company officially entered the Dow Jones Index on Friday to replace chip giant Intel

Axon Enterprise rose 26.68%, and the company's profit for the latest quarter was higher than analysts' expectations. Additionally, the company raised its full-year revenue forecast to $2.07 billion.

Expedia Group rose 3.81%, and the company's profit also beat expectations. The company said the number of night reservations increased by 9% compared to the same period last year.

Airbnb fell 8.66%, and the online vacation rental platform released mixed third-quarter earnings reports and fourth-quarter forecasts that disappointed investors, and then its stock price fell.

Digital pegging and shopping site Pinterest fell 14% as the company's revenue expectations fell short of investors' expectations, although it easily surpassed Wall Street's sales and profit targets.

Digital payments company Block Inc. fell 0.94%, and the company reported third-quarter revenue lower than analysts' forecasts.

DraftKings Inc., one of the largest sports betting companies, rose 2.95%, and the company lowered its revenue and profit expectations for the full year of 2024, citing a difficult start to the fourth quarter.

Rivian Automotive Inc. rose 5.37%, and the company said it is expected to achieve positive gross profit in the last three months of the year with a surge in regulatory credit sales after production disruptions exacerbated losses.

Sweetgreen Inc. fell 6.01%, and the company's stock price plummeted as third-quarter losses exceeded expectations due to rising labor and protein costs.