Dow Jones futures rose early Monday, along with S&P 500 and Nasdaq futures, while Bitcoin reached a record high. U.S. markets are closed for the Martin Luther King holiday, coinciding with Donald Trump’s inauguration, where the incoming president is expected to issue numerous executive orders.
Wall Street eyes Trump’s crypto push as futures gain ahead of inauguration
The stock market experienced a strong rally last week, with the Nasdaq and S&P 500 indices moving back above their 50-day moving averages. Treasury yields fell following tame inflation data, and positive earnings reports helped buoy the major indexes. Bitcoin surged to near record highs due to expectations of pro-crypto policies from Trump.
Stocks such as Tesla (TSLA), ServiceNow (NOW), Vertiv (VRT), Amazon.com (AMZN), and Broadcom (AVGO) displayed buy signals. Other actionable stocks included Goldman Sachs (GS), Energy Transfer (ET), Viking Cruises (VIK), and Quanta Services (PWR).
Trump launched his own cryptocurrency, the $TRUMP meme coin, on Friday, which saw a rapid increase in value, with Trump businesses controlling around 80% of it. Melania Trump also introduced her own meme coin, $MELANIA.
TikTok resumed operations after adhering to a U.S. law that banned it starting Sunday. Trump announced plans to issue an executive order granting the Chinese-owned app a temporary reprieve.
In today’s futures market, Dow Jones futures rose slightly compared to fair value. S&P 500 futures climbed 0.1%, and Nasdaq 100 futures advanced by 0.2%. Bitcoin surpassed $108,000, even reaching over $109,000 overnight.
U.S. stock and bond markets are closed Monday, so investors may not receive a clear initial reaction to Trump’s actions until Tuesday. Global stock markets are open today.
Trump’s expected executive orders
Trump will be inaugurated on Monday and is anticipated to immediately issue between 100 to 200 executive orders covering topics such as energy policies, deportations, Bitcoin, and TikTok.
These executive orders could significantly impact Wall Street and specific sectors, although markets may have already factored some changes in. On Friday, Trump reported a “very good” call with Chinese President Xi Jinping regarding trade and TikTok, which may ease fears related to the trade war as Trump resumes his presidency.
Market performance overview
The stock market displayed strong performance last week, with the Dow Jones Industrial Average rising 3.7% and briefly surpassing its 50-day moving average. The S&P 500 increased by 2.9%, and the Nasdaq composite rose 2.45%, both exceeding their 50-day lines. The small-cap Russell 2000 climbed approximately 4% but remains below the 50-day line.
Growth ETFs also saw notable recovery, with the Innovator IBD 50 ETF (FFTY) rising 3.6%, and the iShares Expanded Tech-Software Sector ETF (IGV) increasing by 3.2%. The VanEck Vectors Semiconductor ETF (SMH) rallied 4.5%. The SPDR S&P Homebuilders ETF (XHB) saw significant gains, surging 8.1% for the week.
Bitcoin nearly reached $106,000 on Friday, trading at 104,767.70. The surge in Bitcoin and other cryptocurrencies was linked to reports surrounding a pro-crypto executive order from Trump to establish a crypto advisory council, supported by a sentiment of rising Treasury yields.
Notably, Tesla stock surged 8.05%, closing at 426.50 for the week and rebounding from its 10-week line. Tesla’s upcoming earnings report on January 29 could attract significant attention, particularly regarding Elon Musk’s plans for self-driving technology and the company’s forthcoming “affordable” EV model.
If markets respond positively to Trump’s executive orders, the upcoming days are expected to show increased activity on Wall Street.
Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.
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