The Dow Jones Industrial Average notched a record high close on Monday, lifted by bank stocks that benefited from optimism about Republican President-elect Donald Trump's expected fiscal policies.
Tesla's stock market value surged to $1.1 trillion, fueled by bets the automaker will benefit from CEO Elon Musk's close ties to Trump. Several other stocks also added to gains they have made since Trump won the election, as traders expect them to benefit from his return to the White House.
Market Snapshot
The Dow Jones Industrial Average rose 304.14 points, or 0.69%, to 44,293.13, the S&P 500 rose 5.81 points, or 0.10%, to 6,001.35 and the Nasdaq Composite rose 11.99 points, or 0.06%, to 19,298.76.
Market Movers
Tesla jumped 9% after the electric-vehicle maker closed Friday with a market cap above $1 trillion for the first time since April 25, 2022, according to Dow Jones Market Data. The stock rose 29% last week for its best weekly performance since late January 2023. The stock rose 15% alone last Wednesday, the day after Donald Trump was elected president. Elon Musk, Tesla CEO, actively campaigned for Trump, spending millions of dollars to support Trump's bid.
Coinbase Global surged 19.7%, MARA Holdings was up 30%, MicroStrategy gained 25.7% as the cryptocurrency-linked stocks gained momentum as Bitcoin traded above $88,000. The largest crypto passed $80,000 for the first time ever on Sunday. Digital assets have soared on expectations that a second Trump presidency would be crypto-friendly. The president-elect has said he'd make the U.S. "the crypto capital world."
Singapore's Grab Holdings raised its forecast for fiscal 2024 revenue on Monday, as it anticipates robust growth in its food delivery and ride-hailing businesses. U.S.-listed shares of the company rose over 13% in extended trading.
Trump Media & Technology Group rose 4.7% after a topsy-turvy week for the company that operates the Truth Social social-media platform and which is roughly 57%-owned by President-elect Trump. The stock fell 23% on Thursday but closed with a gain of 15% on Friday after Trump said he has no intention of selling his shares in Trump Media.
Cigna was up 7.3% after the health insurer said it wouldn't be "pursuing a combination" with Humana. "The Cigna Group remains committed to its established M&A criteria and would only consider acquisitions that are strategically aligned, financially attractive, and have a high probability to close," the company said. Humana fell 2.1%.
AbbVie tumbled 12.6% after the drugmaker said two Phase 2 studies of emraclidine, a treatment for adults with schizophrenia who are experiencing an acute exacerbation of psychotic symptoms, didn't meet their primary endpoints. Bristol Myers Squibb makes a competing schizophrenia treatment, Cobenfy. Bristol Myers jumped 10.5% and was the best performing stock in the S&P 500 Monday.
Monday.com declined 15.4% after the maker of project-management software swung to a loss in the third quarter and said Chief Revenue Officer Yoni Osherov would step down at the end of the year.
Super Micro Computer declined 5.4%. The server maker has until Nov. 16 to submit a plan to the Nasdaq Stock Exchange to regain compliance with listing rules.
Market News
Bitcoin Hits Another Record High in "Undeniable Bull Market"
Bitcoin continued its relentless surge higher, climbing above $88,000 for the first time, boosted by President-elect Donald Trump’s embrace of digital assets and the prospect of a Congress featuring pro-crypto lawmakers.
Trump’s decisive victory in the presidential election has prompted celebratory chest-thumping from the digital-asset industry, which spent over $100 million backing a range of crypto-friendly candidates. Bitcoin has surged more than 30% since last week’s election, setting record highs almost daily.
Tesla Options Draw 'Euphoric' Trading as Trump Win Fires up Stock
Investors are piling into bullish options bets on Tesla shares, with the stock hitting its highest level in more than two years on bets that CEO Elon Musk’s close ties to President-elect Donald Trump may benefit the electric car maker.
"It's euphoric," said Steve Sosnick, chief strategist at Interactive Brokers. "Tesla is by far the most active option at our shop.”
He noted a heavy concentration of call contracts at the $400 level, some 14% above the stock’s current price. Trade Alert data showed much of the trading concentrated in near-term contracts, with options expiring by Friday making up about 56% of the total trading volume.
