💰 5 Fact Friday: Why Markets Are Soaring Post-Election

MARKETS
1. Trump’s Win Boosts Stocks, Sinks Solar 🚀

With Trump’s election victory now official, the market’s immediate reactions are in. Historically, the S&P 500 has mixed results post-election—since 1952, returns average -0.3% on day one, with only a 44% chance of turning positive.

But this year? The market’s feeling a bit more elated.

Who’s Winning?

Stocks: The Dow Jones Industrial Average jumped 3.6%—its largest post-election gain since 1896. All 3 major indices closed at record highs, with the Nasdaq up 3.0% and S&P 500 up 2.5%.

U.S. Dollar: Surged 1.4%—its largest one-day gain since 2020. A strong dollar signals fiscal expansion and the anticipated pro-growth policies of a Trump administration. Good for importers, tougher for exporters.

Small-Caps: The Russell 2000 surged 5.8%, hitting a 52-week high. Small companies, which are more domestic-focused, stand to benefit from Trump’s emphasis on tax cuts and protectionism.

Banks: Bank stocks surged, with JPMorgan Chase ($JPM) and Goldman Sachs ($GS) each up over 10% as investors anticipate looser capital requirements under Trump. Discover Financial ($DFS) jumped 20% and Capital One ($COF) gained 15%, fueled by hopes their proposed merger might face fewer regulatory hurdles under a GOP administration.

Tesla: Up 18% since Election Day, adding over $30B to Musk’s net worth. Investors are betting on favorable regulatory changes and a much more Musk-friendly administration.

Who’s Losing?

Foreign Markets: Funds tracking South Korea, Hong Kong, Taiwan, Chile, and Europe fell as a stronger dollar pulled foreign investment away. The iShares China ETF dropped 2.3% as well, partly due to tariff concerns.

Green Energy: Green energy stocks took a beating, with First Solar ($FSLR) down over 10%, and other solar stocks dropping as much as 30-50%. Concerns loom that a Trump-led government could repeal renewable subsidies and deprioritize green energy.

And the VIX? The Volatility Index dropped 22% to a six-week low, as the swift election results provided a sense of certainty, calming investor nerves.

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ECONOMY
2. Fed Stays The Course Despite Election 🎯

As expected, the Fed delivered a 0.25% interest rate cut this week, inching closer to a true “neutral” stance.

This wasn’t much of a surprise—although some questioned the timing after Trump’s election win, a shift that could bring new economic dynamics into play.

Powell’s message was clear: “The job’s not done on inflation.” He also laid out a sobering timeline, noting that it might take a couple of years to wrangle inflation down to the Fed’s 2% target.

Meanwhile, consumer confidence could lag just as long, with Powell hinting: “It takes some years of real wage gains for people to feel better.”

So, what’s next?

The Fed is targeting the elusive Q* (Q-star)—a “neutral” interest rate that neither stimulates nor slows the economy. The catch? No one’s exactly sure what Q* is today, but consensus says it’s below current levels.

However, the market has been busy recalibrating expectations since the Fed’s first cut in September.

Stronger-than-expected economic data has driven down forecasts for rate cuts. Now, markets expect just four cuts by the end of 2025, down from the nearly eight previously expected.

Then there’s Trump’s agenda—which could keep inflation top of mind.

• High tariffs could spike import prices, raising consumer costs.

• Deportation policies might push wages and costs up in lower-paying sectors.

Reflecting these concerns, the 10-Year Treasury yield surged to 4.46% post-election before settling to 4.33% on Thursday.

If the market’s right, we may not see mortgages in the 5% range until 2025. That would mean a longer, tougher battle with housing inflation—quite the thorny issue in this economy.

CRYPTO
3. Bitcoin Rallies To Record High ⬆️

As the election results became clear, Dogecoin jumped 20% to $0.19, Coinbase ($COIN) stock spiked 30%, and Bitcoin soared 9% to $76,000—a new all-time high.

The crypto world sees Trump’s win as the dawn of a friendlier era for digital assets, fueling a wave of optimism and price surges across the sector.

What’s driving the celebration?

1. Pro-Crypto Policies: Trump, something of a crypto founder himself, is expected to ease regulatory controls, creating a safer space for U.S.-based crypto businesses. This could enable token airdrops, fee sharing, and operational growth for projects that once feared litigation.

2. Exit of SEC Chair: Trump has vowed to remove Gary Gensler on day one. Known for a heavy-handed approach, Gensler has become a crypto antagonist, with courts labeling his rulemaking “arbitrary and capricious.”

3. Strategic Bitcoin Reserve: There is speculation that the administration could establish a strategic bitcoin reserve—retaining its 200,000 seized BTC instead of selling. Some even wonder if the U.S. Treasury could allocate a portion of its holdings to Bitcoin, potentially setting a precedent for other nations.

With nearly half of corporate donations this election cycle coming from crypto firms, it’s clear the sector got what it wanted. The market’s response shows that crypto sees a new ally in Washington.

STOCKS
4. Rapid Fire Earnings Recap 📈

Here’s a quick summary of the latest large cap earnings reports:

Apollo Global Management ($APO) – Market Cap: $90.4B (+72% YTD)

With assets under management rising to $733B, Apollo is living up to its mythic name, chasing big gains with even bigger performance fees. Thanks to deep-pocketed clients and some timely cash-outs, Apollo’s managing more cash than some small countries.

Berkshire Hathaway ($BRK.A) – Market Cap: $993.1B (+27% YTD)

Warren Buffett is hoarding cash like it’s going out of style. After selling even more Apple shares, Berkshire now sits on a record $325 billion cash pile—larger than the Fed’s own piggy bank. Maybe the Oracle knows winter is coming, or maybe his next big buy is right around the corner. On November 14th, we’ll get a closer look at Berkshire’s updated holdings.

Chevron ($CVX) – Market Cap: $279.6B (+5% YTD)

Chevron beat Q3 expectations across the board, but profits still slid year-over-year with lower prices, slimmer margins, and tax pressures. They returned a record $7.7B to shareholders, but with a $53B Hess acquisition in limbo, this stock’s been idling in neutral.

CVS Health ($CVS) – Market Cap: $71.9B (-28% YTD)

CVS’s health check came back mixed: revenue looks solid, but earnings took a hit from rising medical costs—think “revenge healthcare” as seniors return for delayed procedures. On the plus side, their retail pharmacy market share hit a record 27%.

ExxonMobil ($XOM) – Market Cap: $534.4B (+21% YTD)

Exxon earned $8.6B in net income, raised its quarterly dividend to 99 cents, and hit its highest liquid production since the ‘80s. They’re drilling like it’s 1985, and shareholders are loving it. Looks like Exxon’s still got plenty of gas in the tank.

New York Times ($NYT) – Market Cap: $9.1B (+14% YTD)

The Gray Lady added fewer digital subscribers than expected, but still eclipsed 11M on her journey to 15M by 2027. With election season failing to boost engagement, perhaps its time for a plot twist. Shares dropped 8% despite a jump in ad sales.

Nintendo ($NTDOY) – Market Cap: $63.1B (+4% YTD)

Nintendo’s latest numbers show revenue down 17% and profits off by a not-so-nice 69%. As Switch demand fizzles, it looks like even Mario can't save the day. Nintendo might need a 1-Up Mushroom before they hit a true game over.

Novo Nordisk ($NVO) – Market Cap: $494.0B (+4% YTD)

Wegovy sales bulked up more than 80% year-over-year, but Ozempic didn’t flex as hard—with only 28% growth. The Danish giant missed its lofty revenue targets but squeaked out a tiny earnings beat. Since its June peak, the stock’s on a diet, down 27%.

Palantir ($PLTR) – Market Cap: $127.3B (+225% YTD)

Palantir’s riding a wave of government spending, with revenue from Uncle Sam up 40% this quarter. The stock jumped 13% as earnings beat expectations and guidance got a boost. Commercial sales may be slower, but CEO Alex Karp insists the growth story is accelerating.

Toyota ($TM) – Market Cap: $236.9B (-28% YTD)

The world’s largest automaker hit a major pothole with operating profits down 20%—though they did rev up dividends with a 20% boost. Demand's down globally, recalls are denting sales, and rivals like BYD are waging a price war in China. Time for a pit stop and a tune-up?

Yum Brands ($YUM) – Market Cap: $38.4B (+5% YTD)

Yum Brands’ secret recipe isn't as finger-lickin' good lately. KFC and Pizza Hut both saw same-store sales dip 4%. Taco Bell, on other hand, saw 4% same-store growth. Maybe it’s time for Yum to spice up their other menus!

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STOCKS
5. Guess Today’s Mystery Stock 🕵️‍♂️

Can you guess this tech powerhouse? Here are five clues about a game-changing company pushing the boundaries in AI, logistics, and renewable energy:

1. Founded in 1994 in Seattle by a former Wall Street analyst, this company started with books and a hunch that the internet was poised to explode.

2. The founder stepped back in 2021, passing the CEO role to Andy Jassy, an internal executive known for building the company’s cloud computing empire from scratch.

3. Earlier this year, the company announced a full return-to-office policy starting in 2025, stirring internal debate, pushback, and theories that it might be a “backdoor layoff.”

4. In a groundbreaking move, the company struck a deal with Talen Energy to co-locate a data center alongside a nuclear plant—aiming to power AI workloads sustainably. But the Federal Energy Regulatory Commission (FERC) recently blocked the project, citing potential impacts on the power grid.

5. Taking delivery tech to new heights, this company has started testing MK30 drones—that can carry up to 5 pounds and operate in rainy weather—in Phoenix, AZ.

Got a guess? Tap here to reveal the answer → 

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