On Monday, US stocks all closed higher, reaching new historical highs, with the S&P 500 index breaking through the 6000-point mark for the first time. The 'Trump trade' is still ongoing, with Tesla and crypto concept stocks soaring together.

Small-cap stocks led the gains on Monday, with the Russell 2000 rising over 1.5%, reaching the highest level since November 2021. Small companies are seen as potential beneficiaries of Trump's proposed tax cuts and relaxed regulations. From the closing on election day to last Friday's close, the Russell 2000 index rose by 6.1%, while the S&P 500 index rose by 3.7% during the same period.

Although the 'Trump trade' remains hot, the gains in the S&P and Nasdaq are very limited due to the drag from AI giant Nvidia and other large tech companies.

Jake Dollarhide, CEO of Longbow Asset Management, said: 'The four days after the US election have been crazy, and now the market volatility has decreased, but overall trending upwards. If the Trump rally turns into a Santa rally, I wouldn't be surprised.'

Later this week, Consumer Price Index (CPI) and Producer Price Index (PPI) inflation data will be released. Investors are looking for signals about the economic and monetary policy outlook, which will guide the Fed's next interest rate decision.

The Fed cut rates by 25 basis points last week. According to CME FedWatch data, traders believe there is a 65% chance that the central bank will cut rates by another 25 basis points at the December meeting.

Seema Shah, Chief Global Strategist at Principal Global Investors, warned: 'Given policymakers' high alert for the risk of price pressure re-emergence, especially with the continued strength of the US economy, the Fed needs to proceed with caution.'

Morgan Stanley's Chief Investment Officer Lisa Shalett stated: "The decisive victory of the Republican Party has ignited animal spirits, but we do not believe that the situation will fundamentally shift towards rampant inflation and a non-landing situation. We will continue to maintain a cautious and balanced investment strategy."

Market Dynamics

As of the close, the Dow rose 304.14 points, up 0.69%, to 44,293.13; the Nasdaq rose 11.99 points, up 0.06%, to 19,298.76; the S&P 500 index rose 5.81 points, up 0.10%, to 6,001.35. The Russell 2000 small-cap index rose 36.93 points, up 1.54%, to 2,436.57.

US industry ETFs closed mixed, with the banking industry ETF up nearly 3%, global aviation ETF and consumer discretionary ETF up over 2% each, internet index up nearly 2%, financial industry ETF up nearly 1.5%. However, the semiconductor ETF fell by over 2%, global technology stock ETF, biotechnology index ETF, medical sector ETF, and technology sector ETF all fell by at least 0.5%.

S&P 500 index's 11 sectors saw mixed performance, with the financial sector up 1.4%, energy sector up 0.41%, healthcare sector down 0.59%, real estate sector down 0.8%.

Popular stocks performance

Large technology stocks had mixed performance, with Google rising 1.13%, Netflix rising 1.29%, Intel falling by over 4%, Apple falling by 1.2%, Nvidia falling by 1.6%, Microsoft falling by 1.03%, Meta falling by 1%, Amazon falling by 0.61%.

Tesla's stock price surged over 9%, reaching a total market value of $1.13 trillion, continuing the optimistic trend triggered after Trump's victory. Musk's current influence can be said to be a bridge between the tech industry and Washington.

Cryptocurrency concept stocks surged, Canaan rose 41%, MicroStrategy rose 25%, Coinbase rose 19%. Bitcoin rose above $87,000 per coin, up over $6,600 intra-day, hitting a new all-time high.

Most popular China concept stocks rose, Nasdaq Golden Dragon Index closed up 0.59%. XPeng Autos surged over 5%, Li Auto rose nearly 3%, JD.com, Alibaba rose over 1%. iQIYI fell over 1%, Gaotu Techedu fell over 5%.

Company news

【Engine Failure Concerns Raised - US Regulators Investigate Honda Motor】

On Monday local time, the US National Highway Traffic Safety Administration is investigating complaints of potential engine failures in as many as 1.4 million Honda and Acura vehicles. The agency stated that the connecting rod bearings in vehicles equipped with 3.5-liter V6 engines may fail, resulting in complete engine failure. It is reported that Honda recalled around 250,000 vehicles in November 2023 to address this issue. The US National Highway Traffic Safety Administration stated that the agency has received 173 complaints from vehicle owners who reported failures in their connecting rod bearings, yet they were not part of the recall.

【MicroStrategy Buys an Additional 0.0272 Million Bitcoins】

On Monday local time, MicroStrategy, a US publicly listed company globally recognized for hoarding bitcoins, announced the purchase of an additional 0.0272 million bitcoins. Notably, this transaction is MicroStrategy's largest single bitcoin transaction since buying 29,646 bitcoins in December 2020. MicroStrategy disclosed that between October 31 and November 10 this year, the company used $2.03 billion raised through issuing shares to purchase approximately 27,200 bitcoins, with an average transaction price of $74,463 per bitcoin.

【OpenAI Seeks New Methods for Training Models】

Many ai scientists and startups believe that the method of continuously improving ai models by increasing more data and computing power is reaching its limit. Therefore, ai companies like OpenAI are seeking to overcome the current challenges by developing new training techniques that are more similar to human thinking. To overcome these challenges, researchers are exploring test-time compute, a technology that enhances existing ai models during the so-called inference phase or when using the model. For example, the model can generate and evaluate multiple possibilities in real-time, ultimately choosing the best path forward instead of immediately selecting one answer.

Elon Musk has become one of the key figures in the formation of the future Trump administration, according to ABC, citing multiple unnamed sources. It is reported that since the last election, Musk has been appearing at Mar-a-Lago almost every day, directly influencing personnel decisions and strategies for Trump's second term. Sources say he participated in two conversations between Trump and foreign leaders. When talking to Zelensky, Trump even handed his phone to Musk to personally discuss the situation with the Ukrainian leader. Musk also joined a call with Turkish President Erdogan.

Elon Musk, the billionaire, has become one of the key figures in the formation of the future Trump administration, according to ABC, citing multiple unnamed sources. It is reported that since the last election, Musk has been appearing at Mar-a-Lago almost every day, directly influencing personnel decisions and strategies for Trump's second term. Sources say he participated in two conversations between Trump and foreign leaders. When talking to Zelensky, Trump even handed his phone to Musk to personally discuss the situation with the Ukrainian leader. Musk also joined a call with Turkish President Erdogan.