Wall Street reached new record highs on Monday, with the Dow Jones Industrial Average soaring past the 44,000 mark for the first time in history. The broader S&P 500 also hit a significant milestone, surpassing 6,000 points for the first time.
However, the tech sector showed a mixed performance. Among the major tech stocks, Tesla stood out, rising 10% during the session, while Alphabet (Google’s parent company) saw a modest increase of 1%. The rest of the big tech stocks posted declines, with the Nasdaq finishing slightly lower on the day.
The so-called Trump rally, which began following the 47th President’s election on promises of tax cuts and deregulation, continues to fuel market gains. As of midday Eastern Time, the Dow gained 353 points (0.8%) to reach 44,342.43, while the S&P 500 added 13 points (0.2%) to close at 6,008.82.
In contrast, the Nasdaq dipped 7 points (0.04%) to 19,279.63, reflecting a slight decline in tech stocks. Meanwhile, the Russell 2000, which tracks 2,000 small-cap stocks, outperformed the major indices, jumping 38 points (1.6%) to reach 2,437.66.
Tom Lee, the Korean-American market strategist and co-founder of Fundstrat, suggested that Trump’s election could signal a shift in focus from large-cap to small-cap stocks, advising investors to consider smaller companies for growth potential.
Tesla, widely seen as one of the biggest beneficiaries of Trump’s presidency, maintained its upward momentum. The electric vehicle maker surged by $25.70 (8.0%), closing at $346.93. Dan Ives, one of Tesla’s most optimistic analysts and a managing director at Wedbush Securities, raised his price target for the company to $400, calling the Trump administration a game changer for Tesla’s prospects.
On the downside, Nvidia extended its losses for a second consecutive day, dropping $2.60 (1.8%) to $145.03, following declines from the previous weekend. Apple also saw a dip, falling $4.44 (1.95%) to $222.53, while Microsoft dropped $3.56 (0.8%) to $418.98. Amazon slipped $1.90 (0.9%) to $206.25, and Meta Platforms fell $6.12 (1.0%) to $583.22.
Among the M7 big tech stocks, Alphabet was the only company to post gains (excluding Tesla). After lagging behind its peers recently, Alphabet rose $1.68 (1.0%) to $180.03.
Meanwhile, the bond market was closed during Veterans Day, keeping some investors on the sidelines.
