The Dow Jones Industrial Average climbed more than 300 points on Monday as election success continued to drive stock gains, rewarding investors who expect the Trump administration to be more business-friendly. The Dow index rose 358 points or 0.8% and is set for a record close above 44,000 for the first time. On the index front, the S&P 500 touched a record high, jumping 0.1%, while the Nasdaq Composite edged 0.1% lower.
The rally was led by the financial sector, with at least four percentage points contributed by JPMorgan Chase(JPM, Financial) and two percentage points contributed by Goldman Sachs (GS, Financial) due to the positive expectation of less stringent regulation. Similarly, the stocks of Bank of America and Citigroup (C, Financial) increased more than 2%. These maneuvers are based on some belief that the Trump win may lead to less stringent banking rules.
Also, an explosive increase in the crypto market was observed, with Bitcoin hitting $82,000, also in a similar scenario expecting the removal of restrictions. The NASDAQ, Coinbase, and Mara Holdings (MARA, Financial) all went up by 21%, 16%, and 16%, respectively, following the cryptocurrency news. Tesla (TSLA, Financial), which is influenced by the generalized, shifted more than 7% higher.
Cautious optimism about deregulation and a favorable business climate due to post-election investment has helped the stock market gain post-election momentum. As can be seen in the above equations, revenues prove friendly enough for tested equities, but analysts, and especially market observers, continue to warn that bigger pictures remain less reassuring about the sustainability of the rally.
