Bitcoin, Dogecoin move higher on Elon Musk's being appointed to the Whitehouse. Nvidia, Tesla up in after hours trade. Markets reduce bets for US rate cuts. Life360 upgraded on new products
From YouTube
Markets ready for fewer rate cuts, as Trump takes control
Every day since Trump won the US election, the US Fed Funds Futures have suggested that we should also expect less and less US interest rates cuts are ahead. And now Donald Trump’s Republican Party looks set to control the US Congress, meaning Trump has more room to enact policies markets might have to adjust downward to price in inflation and interest rates staying higher for longer. So what’s going on?
– Well overnight several US Federal Reserve officials said there is deep uncertainty in how far the central bank can go in cutting interest rates. So investors flew to the safety of the US dollar and also bought energy stocks as Trump is expected to support the sector.
– On the other hand investor lighted up on Nasdaq companies and smaller companies tending to carry higher debt, such as those in the Russell 2000 Index.
So what to watch now.
– Firstly – consider November is traditionally the best month of the year for the sharemarket. But right now markets await three key catalysts that could move markets wildly in either direction. Firstly, Nvidia earnings due next week with US$33 billion expected in revenue. Secondly, US producer inflation is released tonight. And critically thirdly, we’re awaiting information on Trump’s policies and tariffs, which could hurt Asia's and Australia’s sharemarkets.
– Secondly - consider markets are learning about Trump’s new hires. Elon Musk posted photo of himself on X with the words D.O.G.E underneath. A bit cheeky. He’s been a longtime supporter of Dogecoin. And Elon Musk was appointed co lead of the Department of Government Efficiency, alongside another billionaire, Vivek Ramaswamy. With their work to start in July next year. The DOGE department is intended to dismantle bureaucracy, cut regulations, restructure agencies. Trump also hired Marco Rubio as secretary of state. Matt Gaetz as attorney general.
– But back to crypto - which you all care about. Dogecoin gained 96% in seven days with the extra oomph coming after Musk’s appointment. While Bitcoin gained 18% in in 7 days, BTC rose above US$93,000 overnight. It’s lower now at US$89,500. And with technical indicators suggests bitcoin may face pressure before maybe running up again. So Bitcoin mining stocks, are trader down with the biggest mining stock Mara Holdings $MARA Holdings (MARA.US)$ falling 14%, with Rio Platform $Riot Platforms (RIOT.US)$ and CleanSpark $CleanSpark (CLSK.US)$ also lower. While Michael Saylor’s MicroStrategy $MicroStrategy (MSTR.US)$ fell 8%.
So what’s ahead?
Well all eyes are on US producer inflation. If it falls more than expected it could push up stocks. But regardless, we are seeing a bit of dip buying in after hours trade. Nvidia $NVIDIA (NVDA.US)$, Tesla $Tesla (TSLA.US)$ shares are slightly higher. And what’s key is both of these companies profit when Bitcoin, is higher.
Moving to Australia now. Australia's best performing stock, Life360 is up more than Nvidia, and gets an update. Or two...
The share market $S&P/ASX 200 (.XJO.AU)$ is up 0.4% today with the ASX tech sector up the most up 2%. Family tracking app, Life360 $Life360 Inc (360.AU)$
shares are up 5% as the stocks was reiterated as a BUY by Morgan Stanley and Goldman Sash. I suspect Life360 $Life360 Inc (360.AU)$ is expected to do well in 2025 as its revenue is expected tor grow by 22% next year and 25% the year after. Plus it’s rolling out new products, such as family tracking for pets and the elderly. Life360 shares are one of this yeas best performers on the ASX. Its up 210% and consensus expects its shares will rise 1%. Other tech stocks moving up today to watch include accounting software giant Xero $Xero Ltd (XRO.AU)$ up 5.3%.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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