Markets Soar Amid Trump-Linked Economic Optimism

Market indices, including the Dow Jones and S&P 500, have surged following optimism about fiscal policies expected under President-elect Donald Trump. Financial stocks and crypto surged, while tech stocks dipped. A Fed interest rate cut and inflation data are closely monitored by investors.

The Dow Jones Industrial Average reached a record high on Monday, buoyed by bank stocks amid optimism surrounding President-elect Donald Trump's fiscal policies. Tesla's market value soared to $1.1 trillion, driven by anticipation of benefits from CEO Elon Musk's close ties to Trump. Other stocks have also gained since Trump's election victory.

The S&P 500 financial index saw a rally, with bank stocks boosting the Dow to unprecedented levels. The small-cap Russell 2000 reached its highest point since November 2021, reflecting expectations that Trump's proposed tax cuts and regulatory leniencies could benefit smaller firms. Conversely, tech giants like Microsoft, Amazon, and Meta Platforms experienced declines.

With the S&P 500 gaining almost 4% and the Nasdaq nearly 5% since Trump's win, investors are closely watching the Federal Reserve's interest rate decisions and upcoming economic data, including consumer price inflation reports. Market sentiments suggest a possible Santa Claus rally following the post-election surge, albeit with cautious monitoring of price pressures.

(With inputs from agencies.)