Wall Street/ Trump election stocks/ S&P 500/ stock market update/ corporate earnings/ Newslooks/ NEW YORK/ J. Mansour/ Morning Edition/ The U.S. stock market steadied Monday after shedding much of its rally from President-elect Donald Trump’s victory. The S&P 500 remained flat, with mixed performances across sectors, as investors weighed Trump’s policy implications and upcoming corporate earnings reports.
Wall Street Holds Steady as Trump-Election Gains Fade
Key Points:
- Market Movement: S&P 500 flat; Dow Jones fell 0.2%; Nasdaq rose 0.1%.
- Spirit Airlines Halted: Trading paused as the airline announced a bankruptcy plan.
- Corporate Focus: Major earnings reports from Nvidia, Walmart, and Target expected this week.
- Bond Yields: 10-year Treasury yield held at 4.45%.
Wall Street Steadies After Losing Trump Election Gains
Deep Look: Stocks Steady After Trump-Induced Volatility
U.S. stocks steadied on Monday following significant fluctuations in the wake of President-elect Donald Trump’s election win. Investors digested policy implications and upcoming corporate earnings, calming the market after last week’s sharp pullback.
Market Performance
- The S&P 500 traded flat in early hours, signaling stability.
- The Dow Jones Industrial Average dipped 84 points (0.2%), while the Nasdaq composite edged up 0.1%.
- These moves follow a tumultuous week where the S&P 500 saw its worst post-election loss on Friday.
Post-Election Market Rally Evaporates
Initially, Trump’s election win sparked a 4% rally in the S&P 500, fueled by investor optimism over anticipated pro-business policies like lower taxes and deregulation. However, that momentum waned as concerns grew about potential inflation spikes, larger government deficits, and the Federal Reserve’s capacity to manage interest rates.
Individual Stock Movers
- Spirit Airlines: Trading was halted as the budget airline announced a prearranged Chapter 11 bankruptcy plan, which includes continuing operations but could wipe out existing shareholders.
- CVS Health: Shares rose 1.9% after announcing four new board members, including hedge fund manager Larry Robbins, following discussions with investor Glenview Capital Management.
- Moderna: The pharmaceutical company gained 1.3% but remains down overall, reflecting investor concerns about Trump’s potential appointment of vaccine skeptic Robert F. Kennedy Jr. to lead the Department of Health and Human Services.
Investors Weigh Economic Policies
Wall Street is grappling with potential economic implications of Trump’s policy agenda. His proposals for increased tariffs and federal spending could trigger inflationary pressures, raising Treasury yields and complicating the Federal Reserve’s interest rate strategies.
Higher yields make borrowing more expensive, pressuring companies to achieve stronger earnings growth to maintain attractive stock valuations.
Upcoming Corporate Earnings
- Nvidia (Wednesday): The AI chip leader, valued at nearly $3.5 trillion, must meet high growth expectations to justify its meteoric rise.
- Walmart & Lowe’s (Tuesday): Retail giants will shed light on consumer spending trends.
- Target (Wednesday) & Deere (Thursday): Analysts will assess performance amid mixed economic signals.
Bond Market and Global Indices
The 10-year Treasury yield held steady at 4.45%, providing some calm in the equity market.
Global markets showed mixed results:
- South Korea’s Kospi: Surged 2.2% after Samsung Electronics announced a share buyback plan.
- Europe: Modest moves in indexes reflected cautious sentiment.
Looking Ahead
With Trump’s policy framework still taking shape and concerns over inflation lingering, Wall Street is expected to navigate choppy waters in the near term. Analysts remain focused on corporate earnings and bond market movements as key indicators for future stability.
