Day Traders Diary

11/12/24

The major averages had their first real down day since the Presidential election a week ago. The Dow Jones Industrial Average fell 382 points or 0.86%, but still up nearly 5% in the last week. The S&P 500 fell 17 points or 0.29% while the Nasdaq fell 17 points.

Key components of the so-called Trump trade were among the most notable losers Tuesday. Small-cap stocks, which are viewed as a potential beneficiary of a second Trump presidency, were broadly under pressure, with the Russell 2000 dipping 1.5%.

Shares of Tesla fell 6% which have advanced 31% since Election Day. Trump Media & Technology Group fell 7%. The stock is down 9% since Trump's victory.

The bond market was closed yesterday for Veteran's Day. Today the 10-year Treasury yield rose 11 basis points to 4.4%. The yield on the 2-year Treasury was higher by more than 8 basis points to 4.3%.

Market participants will next turn their attention to consumer and producer price index readings scheduled for later in the week. The release of these inflation gauges comes after the Federal Reserve last week announced another interest rate cut.

The price of oil and gold were down again. Bitcoin opened lower, but then closed at a new high, up 1.29% touching $90,000 briefly for the first time.

Tuesday's action comes a day after the Dow closed above 44,000 for the first time. The S&P 500 also had its first close above 6,000. The trading has reflected investor optimism that Donald Trump's return to the White House could bring both lower taxes and looser regulations, and ultimately serve as a boon to the broader market.