Milestone Rally on Wall Street: Dow, S&P 500 Hit Record Marks as Tesla, Bitcoin Surge Ahead

The Dow Jones Industrial Average and S&P 500 both hit new milestones on Monday as Wall Street extended its post-election surge, spurred by anticipation of economic benefits from President-elect Donald Trump’s policies. The Dow climbed nearly 0.7% to surpass the 44,000 mark for the first time, while the S&P 500 crossed the 6,000 threshold.

This continued rally was driven by investor confidence in Trump's agenda for lower corporate taxes and reduced regulations, along with support from the Federal Reserve’s recent interest rate cut.

Bitcoin also reached record highs, approaching $87,000, with investors hopeful for a crypto-friendly stance from the incoming administration. Other digital currencies, including Dogecoin, saw gains as traders bet on the potential for the U.S. to lead in crypto innovation under Trump’s leadership. This optimism fueled sharp increases in stocks tied to cryptocurrency, with Coinbase and Robinhood shares up more than 20% and 10%, respectively.

Tesla emerged as a significant beneficiary in this "Trump trade" environment, rising over 8% and marking its highest close in two years, driven by market optimism around CEO Elon Musk’s favorable relationship with Trump. Meanwhile, smaller companies rallied as well, with the Russell 2000 reaching its highest point since 2021. 

Despite the rally, there are signs of caution ahead, with Wall Street closely watching upcoming inflation data for hints on potential rate paths. Federal Reserve Chair Jerome Powell recently refrained from commenting on potential policy adjustments in light of Trump's plans, which could include tariffs that might keep inflationary pressures active.

Paraphrasing text from "Yahoo!Finance"all rights reserved by the original author.