Stock markets reached new record highs, buoyed by investor enthusiasm following Donald Trump’s election victory and expectations of favorable economic policies. Bitcoin surged to an all-time high, surpassing $86,000, significantly increasing market interest in cryptocurrency and related stocks. Tesla shares soared over 40% in just a week, benefiting from predictions of regulatory relief under the new administration. Meanwhile, shares of AbbVie sharply declined due to disappointing drug trial results, while Bristol Myers Squibb saw gains following the approval of its schizophrenia treatment. The day also brought notable market movements among health insurers, as Cigna announced it would not pursue a deal with Humana.
In the latest round of stock market activity, the Dow Jones Industrial Average climbed 0.7%, contributing to the growing rally that followed the presidential election. The S&P 500 edged up 0.1%, and although the Nasdaq Composite dipped 0.1%, it had previously hit a new high during trading. This bullish sentiment is largely attributed to Trump’s decisive victory and the Federal Reserve’s decision to cut interest rates, sparking optimism in various sectors.
Tesla (TSLA) has emerged as one of the standout performers, with shares gaining 8.5% to reach $348.70 on Monday. Over the past week, Tesla’s stock surged more than 40% as investors anticipated that a Trump administration may ease regulations, providing a more favorable operating environment for the electric vehicle company. Analysts at Wedbush raised their price target for Tesla to $400 from $300, citing the potential for significant growth in the autonomous vehicle and artificial intelligence markets, which they estimate could be worth $1 trillion. They expect that these initiatives will accelerate under the new government leadership, reinforcing their view that Tesla is currently undervalued.
Cryptocurrencies continued to thrive amidst the election backdrop, with Bitcoin prominently breaking through the $86,000 barrier after first exceeding $80,000 over the weekend. The digital currency’s rapid ascent reflects hopes for a more cryptocurrency-friendly government, which could enhance the overall market environment for digital assets. Crypto stocks responded vigorously; shares of MicroStrategy, Coinbase, and MARA Holdings surged over 20%, leveraging the bullish trend in Bitcoin’s price. Furthermore, ETFs linked to cryptocurrencies also gained significant ground, riding the coattails of Bitcoin’s momentum.
On a different note, AbbVie’s shares fell by 12% following the company’s announcement that its schizophrenia drug, Emraclidine, failed to meet key trial goals, casting uncertainty over its market potential. Conversely, Bristol Myers Squibb (BMY) experienced a 12% increase after successfully securing approval for its schizophrenia treatment, Cobenfy, showcasing a sharp contrast in fortunes within the pharmaceutical market.
In the health insurance sector, shares of Humana (HUM) declined 5% after Cigna (CI) confirmed that it would not pursue a merger with its competitor. Cigna’s stock, however, increased over 6%, reflecting market optimism regarding its independent growth strategy. The company has reiterated its commitment to continue stock buybacks and prioritize financially attractive acquisitions.
Finally, as trading continues, the S&P 500 has recorded significant gains this year, closing in on the landmark 6,000 level for the first time. Investors remain cautiously optimistic about potential further upward movement, especially as important support levels emerge on technical charts that analysts are closely monitoring.