Trump Rally Faces Reality of Upcoming Trump Administration Chaos

Barry Adams
14 Nov, 2024
New York City

Wall Street indexes rested following a post-election rally that lifted major averages to new record highs.

The S&P 500 index decreased 0.2% and the Nasdaq Composite declined 0.1% as investors reviewed the latest updates on weekly jobless data and producer price inflation. 

On an annual basis, producer price inflation accelerated to 2.4% in October from 1.9% in September, the U.S. Bureau of Labor Statistics reported Thursday. 

The annual core rate of producer price inflation accelerated to 3.1% from 2.9%, confirming elevated inflation pressures and supporting the case for policymakers to keep interest rate policy restrictive. 

Initial jobless claims at the end of the week ending on November 9 declined by 4,000 from the previous week to 217,000, the U.S. Department of Labor reported Thursday. 

The four-week moving average, which reduces weekly volatility, fell by 6,250 to 221,000. 

Continuing claims, which lag by one week, fell by 19,000 to 1.873 million. 

In international trading, financial markets in Europe, Japan, China, and India extended volatility for the second week in a row amid growing worries about the U.S. trade policy and nature and level of tariffs under the expected chaotic administration of president-elect Donald Trump. 

President-elect Donald Trump has promised to wipe out the federal government deficit in eight years of his office, vowed to deport 10 million illegal immigrants in the first year of his administration, settle the war in Ukraine in one day, and he should be consulted by the Fed Chair before rate decisions. 

Don't hold your breath; none of these action items are likely to happen, even in the next four years. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 2.0% to 5,901.45, the Nasdaq Composite rose 2.1% to 18,832.39, and the Russell 2000 index rose 1.9% to 2,260.84. 

The yield on 2-year Treasury notes edged higher to 4.28%, 10-year Treasury notes inched higher to 4.45%, and 30-year Treasury bonds increased to 4.61%.

WTI crude oil increased $0.27 to $69.28 a barrel, and natural gas prices edged down 2 cents to $2.95 a thermal unit.

Gold decreased by $15.14 to $2,556.49 an ounce, and silver declined by $0.15 to $30.13.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.72.

 

U.S. Stock Movers

Walt Disney Company soared 10% to $113.16 after the theme park operator reported better-than-expected quarterly results. 

Cisco Systems decreased 1.3% to $58.48 after the networking gear maker reported better-than-expected quarterly results and lifted its annual outlook, but revenue declined for the fourth quarter in a row. 

Capri Holdings declined 2.2% to $19.24 and Tapestry Inc. jumped 11.4% to $57.13 after the two companies called off their merger plans citing regulatory hurdles.