The Dow and the S&P 500 hit new records as stocks rally on Trump's election win and Fed interest rate cuts

The stock market marked a historic milestone on Friday, as the Dow Jones Industrial Average hit 44,000 for the first time in its 128-year history, while the S&P 500 crossed the 6,000 mark. Stocks continued their rally, fueled by momentum from Donald Trump’s presidential election victory.

As the day ended, the Dow was up 267 points, or 0.6%. Meanwhile, the S&P and Nasdaq gained 0.3% and 0.09%, respectively.

Alongside the stock rally, U.S. Treasury yields have also increased, raising concerns among some analysts about market stability and the potential effects on equities. Goldman Sachs (GS) analyst David Kostin released a report Wednesday detailing an updated outlook for the equity markets. In the report, Kostin cautioned that a significant rise in 10-year Treasury yields could constrain any sustained stock rally.

“A further sharp increase in 10-year Treasury yields would likely limit the magnitude of any potential rally in stock prices.” he wrote.

Tesla market cap hits $1 trillion

Tesla’s (TSLA) market capitalization hit $1 trillion Friday morning, as Trump’s election win has helped the EV maker’s stock surge this week.

The company’s share price rose more than 6% to about $313 during intraday trading on Friday. It marks the first time Tesla stock has risen above $300 per share since September 2022. The EV giant is now the ninth largest company in the world by market cap.

Airbnb stock drops 7%

Airbnb (ABNB) reported its third-quarter earnings on Thursday after the market closed, narrowly missing analyst expectations on earnings per share (EPS) but managing a slight revenue beat. The company posted an EPS of $2.13, just under the expected $2.14, while revenue came in at $3.73 billion, edging out the anticipated $3.72 billion.

Bitcoin hits another high

Bitcoin, which hit a record high of $76,000 on Wednesday, continued its upward journey and reached another high on Thursday at $76,872, as crypto markets continued to celebrate the election outcome. Investors are closely watching the cryptocurrency for signs of continued strength amid shifting market dynamics.

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