## US Stocks Poised for Positive Start After Trump’s Reelection Boosts Markets
The U.S. stock market is gearing up for a potentially positive start to the week, buoyed by the strong performance seen in the previous week following Donald Trump’s reelection. The markets, which had experienced heightened volatility in the lead-up to the election, celebrated Trump’s victory, leading to a surge in major indices.
Last week witnessed the Dow Jones and S&P 500 posting their best week of the year, with the S&P 500 surging by 4.66% and the Dow gaining 4.61%. The Nasdaq also saw a significant jump, closing the week 5.74% higher. The gains were broadly based, with most sectors on the S&P 500 ending the week on a positive note, particularly consumer staples, utilities, and real estate stocks.
Analysts Weigh In on the Rally
While the post-election boost contributed to the market’s strength, experts point to a confluence of factors driving the current rally. Ari Wald, head of technical analysis at Oppenheimer & Co., highlighted the “meaningful market strength” underpinning the rally, emphasizing that it goes beyond just the election outcome.
Focus Shifts to Economic Data
Moving beyond the election euphoria, investors will now turn their attention to crucial economic data releases that will provide insights into inflation and consumer spending trends. The October Consumer Price Index (CPI) is a key data point, with economists expecting a moderate uptick to 2.6% from 2.4% in September. The core inflation is expected to remain unchanged at 3.3%.
Investors will also be closely watching retail sales data, which will provide valuable insights into consumer spending patterns ahead of the holiday shopping season. Nathan Peterson, Director of Derivatives Analysis at the Schwab Center for Financial Research, expects some “back and fill” price action as the market consolidates gains, but maintains a cautiously optimistic outlook for stocks in the short term.
Key Economic Events This Week
The upcoming week’s economic calendar is packed with important releases, including:
*
Tuesday:
Fed Governor Christopher Waller, Richmond Fed President Tom Barkin, and Philadelphia President Patrick Harker will deliver speeches.*
Wednesday:
The Consumer Price Index (CPI) will be released, followed by speeches from New York Fed President John Williams and Dallas Fed President Lorie Logan.*
Thursday:
Federal Reserve Governor Adriana Kugler will speak, initial jobless claims data will be released, and Federal Reserve Chair Jerome Powell will deliver a speech.*
Friday:
The Import price index and retail sales data will be released.Stocks to Watch
Several companies will be in the spotlight this week, including Taiwan Semiconductor Manufacturing Co. (TSM), which reportedly received an order to halt shipments of advanced chips to China. Investors will also be looking forward to earnings results from Aramark (ARMK), Live Nation Entertainment (LYV), and monday.com Ltd. (MNDY). Additionally, Trump Media & Technology Group Corp. (DJT) shares have gained over 5% in pre-market trading, and Tesla Inc. (TSLA) shares have surged over 7%.
The week ahead promises to be dynamic, with the markets balancing the positive sentiment from Trump’s reelection with the need to assess the economic outlook based on upcoming data releases. While the near-term outlook appears promising, investors remain cautious, recognizing that the market could experience fluctuations as economic conditions continue to evolve.
