The stock market experienced a significant surge this week, fueled by a major rally on Wednesday following Donald Trump’s election victory. The S&P 500 gained an impressive 4.66%, the Dow Jones Industrial Average rose by 4.61%, and the Nasdaq Composite outpaced them both with a 5.74% increase. These figures represent the best weekly performances for these indices since November 2023.
The rally was driven by several factors. Tesla Inc. (TSLA) saw a remarkable 30% surge in its stock price, significantly boosting the wealth of its CEO, Elon Musk. This surge was attributed to the potential for increased trade advantages for US-focused businesses following Trump’s victory. Smaller companies also outperformed large-cap stocks, further contributing to the market’s upward momentum.
Adding to the positive sentiment, the Federal Reserve announced a rate cut on Thursday, lowering the range to 4.5%-4.75%. This move encouraged further risk-taking among investors, sending the combined market capitalization of the “Magnificent Seven” tech giants to a new peak of $17 trillion.
Benzinga’s Top Bullish Calls
Benzinga provides daily reports on the stocks most popular with investors. Here are some of the most bullish calls from the past week:
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Nvidia Joins Dow Jones:
Analyst Chris Katje highlights the impact of Nvidia Corp. (NVDA) joining the Dow Jones Industrial Average, replacing Intel Corp. (INTC). While Nvidia’s inclusion is notable, Katje suggests that the addition of Sherwin-Williams Co. (SHW) might have a more significant impact on the index’s sector diversity.*
Dogecoin’s Surge:
Khyathi Dalal reports that Dogecoin (DOGE/USD) has soared by 79% over the past month, breaking above the $0.20 mark. Analysts are predicting further gains, with Ali Martinez highlighting a descending triangle pattern that suggests a potential climb to $0.22. A crypto trader predicts a “beautiful bounce” if DOGE breaks the $0.198 resistance level.*
Palantir’s Strong Earnings:
Adam Eckert highlights Wedbush analyst Dan Ives’ praise for Palantir Technologies Inc. (PLTR) after its strong third-quarter earnings. Ives, who calls Palantir the “Messi of AI,” cited 30% revenue growth, a 39% rise in customer count, and robust government and commercial deal momentum.Benzinga’s Top Bearish Calls
Here are some of the most bearish calls from the past week:
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Rivian and Lucid Stock Drop:
Erica Kollmann examines the post-election drop in Rivian Automotive, Inc. (RIVN) and Lucid Group, Inc. (LCID) shares. Investors are concerned about Trump’s plans to eliminate EV incentives and modify EPA emissions standards, which could negatively impact the electric vehicle sector.*
Plug Power’s Challenges:
Surbhi Jain discusses Plug Power Inc. (PLUG)’s ambitious goal of reaching $20 billion in revenue by 2030. A JPMorgan analyst highlights significant challenges ahead, citing weak hydrogen market conditions and the need for rapid sales growth.*
US-Listed Chinese Stocks Drop:
Anusuya Lahiri reports that Alibaba Group Holding (BABA), JD.com, Inc. (JD), and NIO Inc. (NIO) stocks fell following Trump’s election victory. The win sparked fears of renewed U.S.-China trade tensions, with potential tariffs prompting China to consider economic stimulus measures.The stock market’s reaction to Trump’s election win highlights the complexities of market dynamics. While the immediate impact has been positive, the long-term consequences remain to be seen. Investors will closely monitor the implementation of Trump’s policies and their potential impact on various sectors and industries.
