Dear readers,
Today, we dive into the impact of a potential Trump presidency on the stock market and the recent investor optimism it has sparked. As the Dow Jones Industrial Average closed above the historic 38,000 level, some investors are pointing to heightened odds of a Trump presidency as a reason behind this surge.
Trump's views on deregulation and low interest rates have the potential to give smaller companies a significant boost. In fact, the Russell 2000 index of small companies was up an impressive 1.9% at the close, outperforming its peers.
With competitors dropping out of the presidential race, the prospect of another Trump presidency is becoming clearer. Investors are closely watching how this potential outcome could shape the market in the coming months.
In other news, the price of bitcoin has dipped below $40,000 as excitement around the launch of the first U.S. exchange-traded funds holding the digital currency has abated. Crypto investors had high hopes that these new ETFs would attract new assets to the market and boost the price of bitcoin. However, the token's price has consistently dipped lower since the Securities and Exchange Commission approved the new class of funds earlier this month.
Furthermore, Gilead Sciences shares fell 10% after a trial testing drug Trodelvy in certain non-small cell lung cancer patients failed to improve overall survival. Despite this setback, all three leading U.S. stock indexes closed in the green, with the S&P 500 index rising 0.2%, the Nasdaq Composite adding 0.3%, and the Dow Jones Industrial Average gaining 138 points, or 0.4%.
Bond yields retreated, with the yield on the 10-year U.S. Treasury note settling at 4.093%.
Stay tuned for more updates on the market and its exciting twists and turns.
Best regards,
Daniel Silva
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