Investors Elect to Accelerate Market on Election Week | Weekly Buzz
Happy weekend, investors! Welcome back to Weekly Buzz, where we talk about the top ten buzzing stocks on moomoo this week! Comment below to answer the Weekly Topic question for a chance to win an award!
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It was an extreme week in the U.S. stock market: a match-up months in the making that culminated Tuesday night. In an extremely close race and with a relatively furious pace of vote counting, Former President Trump became presumptive President Trump. In the early morning hours of Wednesday, AP News called the election for Trump, who won nearly every swing state. VP Kamala Haris gave a concession speech after the market closed at 4:25 pm ET.
At moomoo, we hosted an election night broadcast of live poll results featuring a wealth of moomoo and international guests. Check it out here:
The week started with electricity in the air that was palpable here on the bank of the Hudson River as millions of Americans headed to the polls to cast their vote. Every major index ran past all-time highs after the results, excluding the small-cap Russell 2000, which still flew 5% higher. The Dow climbed more than 1,000 points, the most in a single day since November 2022. Bitcoin climbed 11% for the week, hit an intra-day high of $76,000, and, later in the week, broke 77k.
By the end of the week, the $Dow Jones Industrial Average (.DJI.US)$ climbed 4.61% for the week. The $S&P 500 Index (.SPX.US)$ cliumbed 4.66% and the $Nasdaq Composite Index (.IXIC.US)$ is up 5.74%.
Outside of politics, the FOMC helped push prices higher: the Federal Open Market Committee lowered the target Federal Funds rate by 25 basis points Thursday to a target of 4.5%-4.75%, citing the progress in inflation and slowing job gains on Thursday.
"Recent indicators suggest that economic activity has continued to expand at a solid pace. Since earlier in the year, labor market conditions have generally eased, and the unemployment rate has moved up but remains low," the FOMC statement said. "Inflation has made progress toward the Committee's 2 percent objective but remains somewhat elevated."
President-elect Donald Trump has been at odds with Federal Reserve Chair Jerome Powell throughout his election campaign, which ended with him winning the top seat at the White House during this week's race, Luzi Santos writes for moomoo news.
That has fueled speculation that Trump may pressure Powell to leave his post when the next president is sworn into office in January. Powell was clear in saying he had no plans to quit. At Thursday's press conference after the Federal Open Market Committee decided to cut interest rates by a quarter percentage point, Powell was asked if he would leave his post if Trump asked him to. His answer was a clear "No."
$U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ climbed for the week and the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ fell. Bloomberg reported Thursday that the $28T U.S. government debt market sold off heavily after Trump's win, causing yields on bonds to rise to their highest values since the summer. Bloomberg reported that bond traders and economists are worried that the "king of debt" will spend more money and increase the deficit, reigniting inflation and causing U.S. debt payments to rise above the yearly GDP.
Anyway, let's dive into the buzzing stocks this week:
Trump media, the stock representing Truth Social, faced high volatility this week in the leadup to the eventual victory of Chief and Major Stockholder Donald Trump in his quest to retake the White House. The stock flew as high as $43/share, up nearly 45% Wednesday after AP News called the election in Trump's favor, before falling back to earth.
@AdamKing: Weird that Elon Tesla going up instead of this stock. Who is the President now?! Lol
While other EV companies fell this week, $Tesla (TSLA.US)$ climbed nearly 30% since election night and 5% further Friday, as the market prices in how much 'protection' chief Elon Musk bought his firm with his $130M in support for the Trump campaign, according to Barrons.
@BuyLowSellHighTrader: we are not greedy, just give us one more dollar then close
$Super Micro Computer (SMCI.US)$ stock fell 21% Wednesday after showing earnings that came in below their guidance, and said that a special committee studied governance errors mentioned in the resignation of auditor Ernst and Young. The committee found no evidence of misconduct but recommended internal governance functions.
@huang002339: this company is likely going to delist soon lol
On Monday afternoon, $NVIDIA (NVDA.US)$ is up 2% as its market capitalization moved past $Apple (AAPL.US)$, making the chip maker the world’s most valuable company. It is due to take a spot on the Dow Friday, taking the place of $Intel (INTC.US)$. By the end of the week, after a shaky performance last week, Nvidia had climbed 8%.
@Effendy: FOMO is a scary thing. Chasing the high makes or breaks people.
$Palantir (PLTR.US)$ stock climbed 21%, the highest on the S&P 500, after the firm released earnings Monday night that showed revenue grew 30% in the past year to $726M.
@103966719: is trump good or bad for Palantir?
Crypto companies were flying on Wednesday, with the assumption that Trump will be staunchly pro-crypto, especially after appearing at the Bitcoin conference as a speaker. $Coinbase (COIN.US)$ climbed 31% after pro-crypto Trump won. Co-founder Brian Armstrong welcomed what he called "America's most pro-crypto Congress ever," noting that over 219 pro-crypto candidates were elected to the House and Senate.
$Bitcoin (BTC.CC)$ finally broke through its record last set in March, climbing to $76k. But based on the crypto's volatility around elections, it might have room to grow. According to Marketwatch, the report features analysts at CryptoQuant.
Bitcoin gained 22% and 37% in 2012 and 2016. In 2020, Bitcoin climbed 98% from November to the end of the year.
@Moomoo News SG: Will Trump's Comeback Spark Another Bitcoin Rally?
Phunware shares climbed throughout the week, an app advertising company that helped work on the Trump campaign in 2020 and a stock that reacted alongside election volatility. Thursday, the reported a narrowed loss and a decline in net revenue.
The firm lost 25 cents a share on a net revenue of $665,000, down from $1.252 million last year.
@Zahid007: really disappointed here
Nio, an EV firm, saw its stock face high volatility as the anti-EV in the past Trump won the election. The stock dropped like a rock Wednesday but climbed Thursday in a lead-up to a Chinese government stimulus announcement. Friday, the stock fell after investors reacted to stimulus.
@RiotMaraMan NIO is in a very nice gentle decline....hopefully reaching 52 week low soon at 3.60. Very good job NIO CEO for making NIO shares available to the public affordably. Hope he continues his good work to bring NIO price down further.
SoFi, a student loan company at its core, saw shares rise throughout the week after Trump's election. As a candidate, he has vowed to eliminate the Department of Education or cut back on student loans and funding. The government holds $1.7T in student loans, according to Barrons. The firm filed a 10-k quarterly report Thursday.
@BFSkinner: remember how not long ago this was hard-stuck $6-7 for months holding???
AMD climbed throughout the week, recovering after falling 9% after rep[orting earnings last Wednesday. The chipmaker's Tuesday release of fourth-quarter revenue outlook missed analysts' estimates. Its Q3 results, otherwise mostly met or beat analyst estimates, were the forward-looking statements that hurt.
@KeithG123: Dont let nvidia outpace AMD today lmao
Thanks for reading!
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Congrats to the following mooers whose comments were selected as the top comments last week!
Weekly Topic
Now that the election results are clear, the GOP won Congress and Trump the Presidency, how are you rethinking your portfolio?
Comment below and share your ideas! We will select up to 15 TOP COMMENTS for a reward next week. Winners will get 200 points by next week, with which you can exchange gifts at Reward Club.
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Kevin Travers
Moomoo News and Community Manager
Moo moo News and Community Manager, NJ Office.
Fmr CNBC contributor, reporter/investor/trader
Posts do not represent mm
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HuatLady : With Trump's recent victory, the market surged with DJI and S&P 500 soaring. However stock markets often defy the prevailing news narrative, moving in unexpected directions. Numerous factors can emerge to test investors' wisdom and intuition.
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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For short-term gains, I am considering investing in the oil and gas sectors given Trump's support for domestic production. This makes companies like $Exxon Mobil (XOM.US)$ and $Chevron (CVX.US)$ worth a closer look. Meanwhile, I could lock in some profits and park partial funds in Cash Plus Fund on Moomoo's.
Despite these short-term opportunities, I am committed to staying focused on a long-term strategy of diversifying into high quality stocks.
102362254 : With the GOP now in Congress and Trump in the presidency, I’m sticking to my long-term investing approach. Market shifts are expected, but I’ll focus on diversification, especially through ETFs, to capture potential growth across sectors while managing risk. ETFs remain a great choice for exposure to various sectors without the need to constantly adjust positions
HuatEver : Now that the election results are clear, I'm staying focused on my Regular Savings Plan (RSP). Contributing consistently helps me build wealth over time without trying to time the market. The RSP’s disciplined approach keeps me on track, taking advantage of market fluctuations and compounding, which supports my long-term goals regardless of political shifts![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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104247826 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
ZnWC : Thanks for the topic![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Below is my view:
1) I followed the "Trump trade" strategy when knowing Trump was going to win the US presidential election. $Tesla (TSLA.US)$ is one stock that the share price surged nearly 40% after the election. As of Friday market closed, the stock is 322 USD and the market cap regain to 1 trillion.
2) I believe the Trump administration will cut corporate tax and increase tariffs which will benefit the big cap companies. Hence I'll invest more in the magnificient seven stocks and S&P500 ETFs.
3) I'll stay away from Chinese stocks knowing that the new administration may trigger another trade war between China and the US. In 2020, Trump warned that he may want to decouple the 2 economies.
4) Lastly it is more important to manage our emotional well being and avoid FOMO buy (greed) and panic sell (fear). I'll invest in a company that is financially healthy with strong fundamentals and grow potential. In the long run, the stock of such a company will gain in value, any price volatility is just noise.
YMY :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
ACY : Nvidia is on the way to hit all time high after the quarter report next week with flying colour results. couple with healthy political landscape and FOMC pushing down interest as per market expectation.
Adrianlim90 : 1
WackyWong :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Aaron Invests (AI) : I had expected the Tesla Rally to 1T market cap. But did not realised it was so soon. Congrats to Tesla Diamond Hands!![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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