US stock markets have reached new historic heights following the election of President-elect Donald Trump, with the Dow Jones Industrial Average closing above 44,000 for the first time ever, FOX Business reports.
The S&P 500 also marked a milestone, surpassing 6,000 for the first time in its 51st record close of the year. Meanwhile, the Nasdaq Composite rose to its 32nd record close, continuing its strong performance alongside a booming cryptocurrency market.
As of Monday, the Dow surged 304 points, or 0.69%, to close at 44,293.13, driven by gains in sectors such as consumer discretionary, financials, and industrials. The S&P 500, with its newfound strength, continues to break records, climbing into uncharted territory.
This momentum comes as investors continue to flood into US equities, betting on the economic policies of Trump’s incoming administration, which have been described as pro-business and market-friendly. The “Trump trade” has sparked widespread optimism, with stocks across various sectors hitting new highs. Tesla, a notable beneficiary, saw its stock jump by 9%, bringing its market capitalization to a staggering $1 trillion. Wedbush analyst Dan Ives has raised his price target for Tesla, predicting that the company’s market cap could hit $2 trillion in the next 12 to 18 months under Trump’s administration.
Trump’s vision of deregulation, tax cuts, and a government focused on fostering private sector growth is seen as a major catalyst for the market rally. Investor Cathie Wood, founder of Ark Invest, has stated that Trump’s economic policies may exceed the benefits of Reagan’s tax cuts and deficit reduction in the 1980s. She believes that the combination of tax reductions, government spending cuts, and a focus on technological innovation could “turbocharge the US economy” in ways never seen before.
“This is likely to be more powerful than the Reagan Revolution… Deregulation, particularly defanging agencies like the SEC and FTC, combined with government spending cuts and a focus on innovation, will create the perfect environment for US companies to thrive,” Wood explained.
Notably, Trump’s pro-business agenda has fueled a surge in the cryptocurrency market as well. Bitcoin, the world’s largest cryptocurrency, recently hit an all-time high of $88,000, continuing its remarkable 147% rise since its November 2023 low of $35,286.59. Investors are betting that Trump’s policies will create a favorable environment for digital assets, with experts predicting that the US government may even begin buying Bitcoin as part of its strategy to build a strategic reserve of the cryptocurrency.
“There will be no government ban on Bitcoin under a Trump administration… In fact, it’s likely the US will start purchasing Bitcoin as part of a national reserve. Bitcoin is here to stay, and it’s going to be in every portfolio, on every company’s balance sheet, and in every nation’s reserve,” said Natalie Brunell, host of the Coin Stories podcast.
As a result, Bitcoin-related companies such as MicroStrategy, Coinbase, and Robinhood have also experienced significant gains. MicroStrategy’s stock jumped by 25%, while Coinbase and Robinhood saw increases of nearly 20% and 7%, respectively. The bullish sentiment surrounding Bitcoin is closely tied to the broader expectations of a pro-crypto regulatory shift under Trump’s leadership.
“Everyone is waking up to the fact that Bitcoin is not just here to stay, it’s going to be a mainstream asset… The Trump administration will play a key role in making this happen,” Brunell added.
In addition to these record-breaking stock performances, the overall US economy is benefiting from Trump’s emphasis on reducing regulatory burdens. His administration has begun assembling a strong team, including former New York Rep. Lee Zeldin as the new EPA administrator and Tom Homan as the border czar, signaling the continuation of Trump’s tough stance on regulations.
As the US stock market continues to climb, investors are bullish about what the future holds under President-elect Trump. His pro-business stance, coupled with the promise of less regulation and lower taxes, is creating the perfect storm for a sustained bull market. Whether it’s in the stock market, technology, or cryptocurrency, the “Trump trade” is proving to be a powerful force, with many analysts predicting further gains in the months to come.
For now, the Dow stands at a record 44,000, the S&P 500 is above 6,000.
