mega swerte Bitcoin and Stocks Set Records as Bullish Bets Continue
Bitcoin passed $88mega swerte,000 for the first time and major stock indexes set records on Monday, as markets continued to rally following Donald J. Trump’s victory in last week’s election.
The S&P 500 rose 0.1 percent to close above 6,000 for the first time, and the Dow Jones industrial average rose 0.7 percent to close at 44,293, a new high. The price of Bitcoin rose more than 10 percent on Monday to above $88,700.
Markets have been buoyed by investors’ expectations of business-friendly policies under a second Trump administration, including tax cuts, lighter regulation and less enforcement of some securities laws that target cryptocurrencies.
To some extent, asset prices tend to rise after a major event like the presidential election passes without disruption. But the rise in prices — including crypto, stocks and currencies — has been broad across parts of markets that are known as the “Trump trade.”
“It has gone parabolic,” said Andrew Brenner, head of international fixed income at NatAlliance Securities.
S&P 500 Sept. 18 Sept. 19 Sept. 20 5,650 5,700
Data delayed at least 15 minutes
Source: FactSet
By The New York Times
Some investors worry about the potential for inflation to reignite in the economy if the incoming administration’s promises on the campaign trail come to fruition. That could push up interest rates and government borrowing costs. The bond market was closed on Monday for Veterans Day.
Bitcoin in particular has been booming over the past week. Just weeks before the election, Mr. Trump promoted a crypto venture, World Liberty Financial, in which several members of the Trump family have roles.
The industry poured millions of dollars into the election. Prominent crypto executives, including Tyler and Cameron Winklevoss, the founders of the Gemini crypto exchange, donated large sums to support Mr. Trump. A group of super PACs also raised well over $100 million to elect pro-crypto congressional candidates.
Some investors have warned that the markets may be getting ahead of themselves. Mr. Trump has released little concrete detail about what he actually plans to do once in office.
“Investors should be careful that the hype doesn’t override fundamentals and introduce unnecessary riskmega swerte,” said Mark Hackett, chief of investment research at Nationwide.