U.S. stock markets opened higher as major indices attempted to extend last week's gains. The Dow Jones Industrial Average rose 0.56% to 44,237.50 points, the Nasdaq Composite added 0.36% to 19,355.50, and the S&P 500 increased by 0.33% to 6,015.58 points.
Last week, U.S. stocks saw a significant rally with all three major indices reaching record highs. The Dow surpassed the 44,000 mark, while the S&P 500 broke through the 6,000 level. Notably, the rally included small-cap stocks from the Russell 2000 Index, broadening beyond tech-heavy Nasdaq gains.
Investor focus is currently on the composition of the upcoming U.S. government and future Federal Reserve monetary policy. Speculation is rife about President-elect Trump's choices for key cabinet positions, including Treasury Secretary. Rumors include the potential candidacy of fund manager Scott Bessent, though a meeting with Trump last week is considered informal.
Elon Musk, CEO of Tesla (TSLA, Financial), participated in a call between Trump and Ukraine's President Zelensky last week. Analysts suggest that Musk could play an influential role in the new administration.
The Fed's monetary policy continues to be a key interest for investors. U.S. inflation data, due soon, will help determine the Fed's rate path. Recently, the Fed lowered its overnight loan rate by 25 basis points to a target range of 4.5%-4.75%. Projections suggest further cuts could occur in upcoming meetings.
Federal Reserve Chair Jerome Powell maintains a firm stance against political pressures and insists on the independence of the central bank. Powell stated he wouldn't resign if asked by Trump, emphasizing the legal protection of Fed leaders from dismissal.
Bitcoin has surged past $82,000, driven by speculations that Trump's administration may implement policies favorable to cryptocurrency. Analysts at Zaye Capital Markets expect Bitcoin could aim for $100,000 soon.
Tesla's share price has continued to rise, and analyst Dan Ives from Wedbush raised the price target for Tesla (TSLA, Financial) from $300 to $400. Piper Sandler also increased its price target for NVIDIA (NVDA) from $140 to $175.
There are reports that Apple's and Samsung's projects on ultra-thin, high-density batteries have failed, affecting upcoming product designs. Additionally, Google is testing a standalone AI app, "Google Gemini," on the Apple App Store for enhanced interaction for iPhone users.
Meanwhile, India's financial crime agency plans to summon executives from major e-commerce companies Flipkart and Amazon over potential violations of foreign investment laws following recent raids.
The surge in Bitcoin has positively impacted cryptocurrency stocks, leading to broader market gains.
