[서울=뉴스핌] Reporter Go In-won = The major indices of the New York stock market all hit record highs on the 8th (local time). With Donald Trump’s election and the possibility of Republicans taking over Congress, the Dow broke the 44,000 mark and the S&P 500 broke the 6,000 mark for the first time in intraday trading.
On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 43,988.99, up 259.65 points (0.59%) from the previous day. The Standard & Poor’s (S&P) 500 index, centered on large-cap stocks, closed at 5,995.54, up 22.44 points (0.38%), and the Nasdaq index, centered on technology stocks, closed at 19,286.78, up 17.32 points (0.09%) from the previous day. As a result, the three major indices once again broke their all-time highs.
The stock market continues to rally, fueled by optimism that President-elect Trump’s business-friendly policies will boost American companies and the economy.
Even on a weekly basis, the S&P 500 and Dow recorded their largest gains since early November 2023, and the Nasdaq showed its steepest rise in two months.
As the so-called ‘Trump trade’ continued, related stocks rose all at once. ▲Tesla (stock name: TSLA), led by Elon Musk, soared 8.2%, and ▲Trump Media & Technology (DJT), owned by Trump, soared 15.2%. Tesla’s market capitalization exceeded $1 trillion on this day. Bitcoin also broke its all-time high, surpassing $77,000 on this day.
The market is optimistic about the possibility that the Republican Party will take control of Congress by maintaining its majority in the House of Representatives following its control of the majority in the Senate. If the Republican Party takes control of both the Senate and the House of Representatives in addition to the White House, President-elect Trump’s policy promotion will receive strong momentum, and there is a greater possibility that a more favorable environment will be created for American businesses and growth.
Some on Wall Street are concerned about higher stock prices, but with the U.S. stock market showing strength this week, market confidence that this rally will continue until the end of the year is growing.
“When everything seems to be going well, we wonder, ‘What’s threatening us?’” Keith Lerner, Truist Wealth’s chief investment officer, told CNBC. “The unexpected can happen, and the unexpected can happen. “After prices reach a certain level, the market may wobble a bit, but overall we still think it’s a good idea to follow the main upward trend,” he added.
By stock, the stock price of enterprise software provider ▲Salesforce (CRM) rose 3.6%, lifting the Dow index. Bloomberg News reported that Salesforce plans to hire 1,000 employees to promote its artificial intelligence (AI) tool, AgentForce.
On the other hand, ▲Airbnb (ABNB)’s stock price fell 8.6% due to the announcement of third quarter earnings that fell short of market expectations, and social media platform ▲Pinterest (PINS) fell 14% due to disappointing guidance.
The stock prices of Chinese companies listed on the U.S. stock market also fell as the 10 trillion yuan (approximately 1,930 trillion won) stimulus package announced by the Chinese government on this day was evaluated as disappointing.
Treasury yields have fallen, but are still near their highest level in four months. Treasury yields have soared since Trump’s election amid concerns that President Trump’s high tariff policy could stimulate inflation and delay the Federal Reserve’s interest rate cut. In afternoon trading in the New York bond market, the interest rate on 10-year U.S. Treasury bonds recorded 4.306%, down 3.5 basis points (1 basis point = 0.01 percentage points) from the previous day. The 2-year interest rate, which is sensitive to policy interest rates, rose 3.6bp to 4.256%. Bond interest rates move inversely to prices.
The US dollar rose. The dollar index, which shows the value of the dollar against six major currencies, rose 0.43% from the previous day to 104.96.
International oil prices closed lower. On the New York Mercantile Exchange (NYMEX), West Texas Intermediate (WTI) crude oil for December delivery recorded $70.44 per barrel, down $1.92 (2.65%) from the previous price. The January Brent crude contract on the ICE Futures Exchange fell 1 dollar and 63 cents (2.16%) to $74.00.
Gold prices fell due to the strength of the US dollar. Gold futures on the New York Mercantile Exchange (COMEX) recorded $2,684.03, down 0.8% from the previous day. Spot gold recorded $2,694.80 per troy ounce, down 0.4% from the previous day.
The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), called the ‘Fear Index of Wall Street’, recorded 14.94, down 1.71% from the previous day.
