Wall Street remained steady on Monday after seeing much of its rally following President-elect Donald Trump‘s election victory fade.
The S&P 500 remained unchanged during early trading, while the Dow Jones Industrial Average slipped 0.2 percent and the Nasdaq inched up by 0.1 percent. Investors appeared cautious after the volatile close last week erased much of the post-election gains that initially buoyed markets.
The financial world is also watching Spirit Airlines, which paused trading amid its Chapter 11 bankruptcy announcement. While the airline plans to keep operating during the restructuring, its current shareholders are bracing for a potential loss of their investments.
Meanwhile, CVS Health saw a 1.9 percent rise in its stock price after announcing the addition of four new directors, a decision influenced by discussions with hedge fund Glenview Capital Management. The new appointees include Larry Robbins, CEO of Glenview.
Post-Election Gains Wane
The initial market rally following Trump’s presidential victory, propelled by expectations of tax cuts, deregulation and fiscal stimulus, has lost steam. Although the S&P 500 surged nearly 4 percent after Election Day, the momentum has slowed amid concerns over inflation and trade policies. Last Friday marked the index’s sharpest loss since Election Day, underscoring investor uncertainty.
It comes as Moderna ticked up by 1.3 percent on Monday, but it is still down since Trump said he wanted Robert F. Kennedy Jr., a prominent vaccine skeptic, to lead the Department of Health and Human Services.
“Traders appear to be gauging the potential impact of a new Trump administration’s policies on the economy, and the possibility that the Fed may slow down its rate-cutting campaign,” Chris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley, said to The Associated Press (AP).
Eyes on Inflation and Treasury Yields
Bond markets reflect similar concerns. The 10-year Treasury yield remained at 4.45 percent early Monday, a stark reminder of how inflation fears can tighten Federal Reserve policy. Rising yields often pressure stock valuations as companies must deliver increasingly robust earnings to justify elevated prices.
Chipmaker Nvidia is among the key players in the spotlight this week with its earnings report due Wednesday. Valued at nearly $3.5 trillion, Nvidia is emblematic of the AI boom. Analysts are watching closely to see if its latest performance matches its soaring valuation.
Other corporate heavyweights reporting this week include Lowe’s and Walmart on Tuesday, followed by Target on Wednesday.
Global Markets Mixed
Outside the U.S., market movements were subdued. European indexes showed modest changes, while Asian markets saw more pronounced swings. South Korea’s Kospi surged 2.2 percent, boosted by Samsung Electronics’ announcement of a share buyback plan.
This article includes reporting from The Associated Press.
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