The stock market is hotter than a jalapeño pepper. Wall Street just did something it’s never done before, with the Dow Jones shooting up to an insane 44,000 during trading on Friday before closing at a record-breaking 43,988.99. For those keeping score, that’s a 259.65-point climb, or 0.59%.
The S&P 500 didn’t want to feel left out, so it pushed through to hit a wild 5,995.54, breaking into the 6,000 territory during trading hours and finishing at 0.38%. Nasdaq, usually the tech-darling of the bunch, was trailing at 0.09%—yeah, just 0.09%—closing at 19,286.78, but it still hit a fresh high during the day.
All three indexes wrapped up at record highs, and honestly, this week was something straight out of a Wall Street fever dream. This rally is hands down the best week they’ve had in a long time.
Trump’s presidential win on Wednesday basically made traders lose their minds, and investors betting hard on what they think will be the friendliest environment for business in years.
The Nasdaq sprinted ahead with a whopping 5.74% weekly gain, and if you thought that was a lot, get this: the Russell 2000, the small-cap benchmark, absolutely demolished expectations with an 8.57% leap.
These little guys (small-caps) are betting big on Trump’s economic growth plans, and they’re dragging the entire market up with them.
Stocks connected to Trump and the Fed boost
Everyone’s watching the Republicans like hawks now. Wall Street is practically salivating over what they see as Trump’s pro-business agenda. Barclays economist Venu Krishna threw out a quick note to clients, saying this move up is all about investors banking on Trump’s domestic growth policies, especially with small-caps, who are likely to benefit from a growth-focused, deregulated environment.
“Equities are eager to price in Trump’s domestic growth policies (via small-caps) and hopes for easier regulation relative to the Biden administration,” Krishna said, adding that:
“Whether these moves are sustainable remains to be seen; momentum is extending lofty gains as ‘winners keep winning’, and the sharp post-Election Day moves have pushed major gauges near (or into, in the case of [Russell 2000]) technically overbought territory.”
And as if that wasn’t enough, the Federal Reserve cut interest rates by a quarter percentage point on Thursday, with Fed Chair Jerome Powell giving the economy a little pat on the back. “Feeling good” was his vibe. Stocks took that as a “keep going” signal, adding even more fuel to an already lit week.
Tesla, of course, rode the high—CEO Elon Musk had been publicly supporting Trump. They’re really close now. Tesla shares climbed an insane 8.2%, its fourth day in a row of gains, and crossed the $1 trillion mark.
Axon Enterprises, another Trump-connected company, skyrocketed over 28% after raising its annual revenue guidance. And Trump Media? Yeah, it spiked another 15% after President Trump confirmed he’s holding on to his shares.
Coinbase, the crypto giant, also caught some serious gains, up 5% in afternoon trading. It is set to close the week with a mind-boggling 47% climb. If it holds, that’ll make this Coinbase’s best week since January 2023, when it soared by 50%.
Bitcoin is also sitting pretty at $77,014.49 after hitting a daily high of $77,158.42. It’s been an 11.3% increase, making this its best week since its 11.75% jump in September.
While big names like MicroStrategy saw modest gains, miners didn’t fare as well. Mara Holdings and Iren, once known as Iris Energy, were both in the red.
Bitcoin is ready for $100K with Trump’s win
Now Bitcoin is feeling ambitious, eyeing $100,000 with the kind of intensity you’d expect after America gets its first-ever self-proclaimed “crypto president.”
James Butterfill, CoinShares’ head of research, sees this milestone as a real possibility before the year is out, citing Trump’s presidency and the Republican Senate majority as crucial catalysts. “Bitcoin at $100,000 doesn’t sound so unreasonable,” he said, pointing out that this price would only represent around 10% of gold’s market cap.
Butterfill explained that Trump is likely to usher in a friendlier regulatory environment, especially with his promise to fire SEC Chair Gary Gensler, the crypto industry’s regulatory nightmare.
Gensler has been throwing lawsuits left and right at major players like Coinbase, Binance, and Ripple. Trump’s promise to show Gensler the door is a rallying cry for crypto lovers.
Beyond that, the president is also talking about creating a Bitcoin reserve from seized assets, plus an all-American plan to mine the remaining Bitcoin supply within the U.S. market. Butterfill is dead serious about this rally, pointing to these policy shifts and expected Fed rate cuts as primary drivers for Bitcoin’s potential climb.
Jag Kooner, Bitfinex’s head of derivatives, also jumped on the six-figure Bitcoin bandwagon, calling $100,000 “feasible” given the momentum. “We expect Bitcoin to have limited downside now,” he said, adding that recession fears aren’t exactly keeping anyone up at night these days.
Fadi Aboualfa, Copper’s head of research, agreed, saying Bitcoin might hit $100,000 by Trump’s January inauguration. He added that Trump’s previous presidency saw two all-time Bitcoin highs, and while those were during a weaker dollar phase, current momentum with Bitcoin exchange-traded funds (ETFs), holding around 1.1 million bitcoins, could make this a reality.
Add in favorable conditions in the U.S. labor market, steady interest rates, and Powell’s optimism, and it’s a near-perfect storm for Bitcoin.
Fundstrat’s Tom Lee, a big voice in the crypto community, is all in on the idea that Bitcoin’s post-election rally has barely scratched the surface. He’s betting on six figures by year-end, saying on CNBC’s “Squawk Box” that the regulatory overhang is finally easing up.
“Six figures is still possible for Bitcoin before the end of the year, and then more next year,” he said. Trump’s inner circle is packed with Bitcoin advocates. Vice President-elect JD Vance, biotech entrepreneur Vivek Ramaswamy, Cantor Fitzgerald CEO Howard Lutnick, and Robert Kennedy Jr. are all in.
The Biden administration, with anti-crypto allies like Sen. Elizabeth Warren and Gensler, has hit the industry hard, bringing numerous enforcement actions without clear legislation. Trump’s camp, however, promises a 180-degree shift.
Lee’s summary? “Respect the move.” According to him, it’s a rally that’s pulling in a ton of sidelined cash, especially from investors who were on pause during election uncertainty.
Bitcoin’s up 79% this year. Compare that to the S&P 500’s 25%—yeah, no contest. This rally is a testament to Bitcoin’s resilience, its positioning as a Treasury asset in a deficit-ridden economy.
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