350, 6000, 44000, 88000 - Do you know the meanings of these series of numbers?
If you are a global market investor and have personally experienced the market trends across asset classes on Monday, then at this moment, you must already be associating the meanings behind these sets of numbers.
350 (USD) was the closing price last night.$Tesla (TSLA.US)$This week, the global leading electric vehicle company rose by 9% again. Since the US election on November 5th, Tesla's stock price has increased by over 39%, and the company's market cap has added over $300 billion. As investors believe that Trump's presidency will bring great benefits to Musk's electric auto manufacturers, the dramatic shift in market sentiment has quickly fueled the stock's rapid rise.
6000 points and 44000 points were the closing points last night.$S&P 500 Index (.SPX.US)$and $Dow Jones Industrial Average (.DJI.US)$ For the first time in history, it has crossed two recent integer thresholds. Donald Trump's victory has not only benefited some typical Donald Trump concept stocks, but also has a visible effect on the overall US large cap stocks. The market expects that his tax cuts and relaxed financial regulatory policies may further stimulate the "animal spirits" in the market. Lisa Shalett, Chief Investment Officer of Morgan Stanley Wealth Management, wrote in a report on Monday, "The decisive victory of the Republican Party ignited the 'animal spirits,' even though expectations were already high."
Lastly, the number 88,000 (in USD), which is twice as high as 44,000, was surpassed in the latest whole number milestone.$Bitcoin (BTC.CC)$In the latest breakthrough of the integer milestone last night, the support position of US President-elect Trump on digital assets, as well as the prospect of many members of Congress supporting cryptos, together propelled bitcoin above this significant integer milestone for the first time. In fact, since the election day on November 5th, Bitcoin has successively surpassed 14 integer milestones in just a few trading days (measured in thousands of US dollars).
Barclays' Europe Stock Strategy Director Emmanuel Cau stated, 'We continue to see people eager to join the Trump trading as soon as possible.'
Mabrouk Chetouane, Global Market Strategy Director at French Foreign Trade Bank Investment Management Firm, said that the performance of cryptos and other so-called 'Donald Trump trades' indicates that people are increasingly expecting the former president to take a lenient regulatory approach during his second term.
He stated, 'Even if trade protectionist measures are further strengthened, investors are still willing to take risks.' He was referring to Trump's plan to significantly increase tariffs on U.S. imports.
It is worth noting that even though the trends in the forex and bond markets have not seen the same breakthroughs as the stock and crypto markets in terms of round numbers, the 'Donald Trump trades' in these two vast markets have continued at the beginning of this week.
Trump's decisive victory has prompted traders to price in the incoming president's tax cuts and tariff promises, which boosted the dollar and led to selling of U.S. government bonds.
$USD (USDindex.FX)$At the end of the New York session on Monday, it closed at 105.51, a significant increase of 0.48% for the day, hitting a high of 105.70 since July. On Monday, the euro against the US dollar fell to its lowest level in nearly seven months, as investors worried that the new White House administration might impose tariffs, damaging the eurozone economy. Since Trump won the US presidential election last week, triggering concerns about the new administration potentially imposing tariffs, the euro and other non-US currencies have been declining.
The U.S. Treasury cash market was closed on Monday for Veterans Day, but the futures market still showed significant selling pressure. By 3:30 pm New York time on Monday, the 10-year U.S. Treasury futures fell by about 11 points, implying a yield level of around 4.35%. If this level is maintained when the Asian markets open for trading on Tuesday, it means the 10-year bond yield will be approximately 5 basis points higher than Friday's closing.
In their report on Monday, lpl financial's strategy team wrote, 'Positive economic data, Fed might be too dovish, and more policy details released by the Trump administration could all push up bond yields. Only in the event of negative economic surprises will yields significantly drop from their current levels.'
In any case, it can be foreseen that as the Trump team begins discussions on the specific nominees for the cabinet after the election, and continues to attract the attention of market participants, a series of 'Donald Trump trades' momentum may still persist for some time in the short term.
Of course, Chris Larkin, head of E*Trade platform under Morgan Stanley, also pointed out that with the US election and another rate cut becoming history, the question is whether the bulls can continue to drive the market to new highs.
Larkin believes, "Apart from potential profit-taking that may occur after such a strong rally, this Wednesday's US inflation data may also determine whether the market can hold onto its gains."
Editor/Rocky
