Wall Street's High Stakes: Economic Data Holds the Key

Wall Street indexes hover near record highs as post-election gains persist. Economic data and policy expectations drive mixed movements, with Tesla and financials surging, while Nasdaq retreats. Focus shifts to inflation data and Fed's cautious approach amid strong U.S. economic outlook.

On Monday, Wall Street's primary indexes remained close to record highs, buoyed by post-election gains. The upcoming release of economic data could influence the sustainability of the equity rally. Tesla notably rose by 7.4%, lifting consumer discretionary shares, while the small-cap Russell 2000 reached its highest level since November 2021.

Financial stocks experienced significant growth, pushing the Dow Jones Industrial Average higher as they continue to benefit from President-elect Donald Trump's anticipated tax cuts and regulatory changes. In contrast, the Nasdaq retreated from its previous highs due to declines in megacap and tech stocks, with Monolithic Power Systems seeing a substantial drop.

Crypto markets reacted positively as bitcoin climbed past $84,000. Attention now turns to Wednesday's consumer price inflation data and other economic indicators that will influence monetary policy. The Federal Reserve's recent interest rate cut highlights a cautious approach amid ongoing economic strength, as market players adjust expectations for future rate policies.

(With inputs from agencies.)