Market News by OnEquity

[OnEquity]

Dollar Gains on Cut in Rate Expectations, Pound Falls on Inflation
The U.S. dollar rose Monday, maintaining its recent strength as the election for U.S. president approaches and polls point to a growing likelihood that former President Donald Trump will be the winner.

Dollar Boosted by Confidence in Trump​

The dollar remained near its highest levels in over two months, bolstered by growing confidence that U.S. interest rates will decrease at a slower pace than initially expected. This is further supported by recent data showing that the U.S. economy remains healthy.
According to the CME FedWatch tool, traders are largely expecting a 25 basis point rate cut by the Federal Reserve in November.
The dollar has also been buoyed by increasing expectations that Donald Trump will defeat Kamala Harris in the 2024 presidential election, now less than two weeks away.
It is considered possible that the tariff and tax policies proposed by Republican candidate Donald Trump could keep U.S. interest rates high and apply downward pressure on the currencies of trading partners.
“Currency markets appear to be positioning for a Trump victory in next month’s U.S. presidential election. October seems to have been a good month for Donald Trump in opinion polls, and the dollar is rising across the board,” ING analysts mentioned in a note.

Euro Hit by Weaker PPI in Germany​

In Europe, EUR/USD was down about 0.1%, trading at 1.0850, after German producer prices fell more than expected in September, declining by 1.4% year-over-year instead of the estimated 1.0%.
European Central Bank policymakers are likely to cut the policy rate to a neutral level between 2% and 3%, although further cuts may be necessary if inflation continues to fall, ECB policymaker Gediminas Simkus mentioned on Monday.
“If disinflation processes take hold… it is possible that rates will be lower than the neutral level,” Simkus, governor of the Lithuanian central bank, told reporters in Vilnius.
GBP/USD fell 0.2%, reaching 1.3022, after data revealed that British property sales prices rose just 0.3% during October, well below the average monthly increase of 1.3%, according to property website Rightmove (RTMVY).
This, coupled with the unexpected drop in services inflation last week, signals that further rate cuts by the Bank of England are likely in the coming months, as the bank seeks to stimulate the U.K. economy.

Yuan Declines After PBoC Rate Cut​

USD/CNY rose 0.2% to 7.1120 after the People’s Bank of China cut its benchmark lending rate by 25 basis points.
Over the past month, China has announced its most aggressive round of stimulus measures, including monetary and fiscal policies aimed at boosting sluggish growth.
USD/JPY rose about 0.3%, reaching 149.91, though it remained below the 150 level after briefly surpassing it the previous week for the first time since early August.

 

[OnEquity]

U.S. Stock Markets Plummet Amid a Flood of Third-Quarter Results
U.S. equity markets and stock indices were slightly lower on Monday, consolidating near record levels, with attention focused on a series of key results from the technology sector.
Positive results from banks and technology companies in the previous week had driven several of Wall Street’s major indices to record highs, with the S&P 500 and the Dow Jones both posting record highs on Friday. This marked a sixth straight week of gains, the best streak of the year for both indices.
However, momentum appears to be stalling somewhat, as anticipation of both the upcoming Federal Reserve meeting and the tight U.S. presidential election keeps investors cautious. High valuations for U.S. equities have also increased the likelihood of near-term losses.

Key Tech Results of the Week​

Tesla (TSLA) will be the most prominent company reporting results this week, with the electric car maker’s earnings under the spotlight following its disappointing robotaxi unveiling earlier this month.
Tesla also missed expectations for third-quarter deliveries, which is expected to weigh on its quarterly earnings when it reports on Wednesday.
Several chipmakers will also release results this week. ASML (ASML) and TSMC (TSM), two key players in the sector, gave mixed signals regarding demand. Texas Instruments (TXN), Western Digital Corporation (WDC), and Lam Research Corp (LRCX) are among the relevant stocks reporting, while in the broader technology sector, IBM (IBM) will also announce its results this week.
Outside the technology sector, this week will feature earnings reports from major defense companies, including RTX Corp (RTX), Lockheed Martin (LMT), L3Harris Technologies (LHX), General Dynamics (GD), and Northrop Grumman (NOC).
Telecommunications giants T-Mobile US (TMUS), Verizon Communications (VZ), and AT&T (T) are also set to report earnings.
Aircraft manufacturer Boeing (NYSE) will report its results on Wednesday, with a particular focus on its cash position as the company faces its first significant strike in over a decade.

A Quiet Week for Economic Data​

It will be a relatively quiet week on the U.S. economic calendar, although investors will receive updates on the housing sector with reports on new and existing home sales. Additionally, durable goods orders, consumer confidence, and initial jobless claims will be released.
On Wednesday, the Federal Reserve will release its Beige Book, a report on economic conditions across the central bank’s 12 districts.
Market participants will also hear from several regional Federal Reserve officials throughout the week, including Minneapolis Fed President Neel Kashkari, Kansas City Fed President Jeffrey Schmid, San Francisco Fed President Mary Daly, Philadelphia Fed President Patrick Harker, and Richmond Fed President Thomas Barkin.

Oil Shows Signs of Rebounding​

Oil prices rose on Monday, recovering from last week’s steep losses, as energy traders weighed concerns over weak demand from major importer China and the evolving conflict in the Middle East.
Data released on Friday indicated that China’s economy grew in the third quarter at the slowest pace since early 2023, although September consumption and industrial production exceeded forecasts.
Uncertainty remains over how the conflict in the Middle East will develop and whether it will significantly impact oil supply in the region.

 

[OnEquity]

Market Highlights for the Week: Tesla, IMF, and Oil
Tesla will be the first of the “Magnificent Seven” to report in the corporate earnings season. Global financial leaders will meet in Washington, and oil prices remain volatile. Here’s a look at what’s happening in the markets this week.

Tesla Reports Its Results​

As earnings season picks up momentum, Tesla (TSLA) will be one of the first major U.S. tech companies to release its results, which are expected on Wednesday after the close of the trading session.
Tesla’s stock has faced losses this month following the unveiling of its eagerly awaited robotaxis, which left some investors disappointed due to the lack of precise details. So far, Tesla shares have underperformed the S&P 500 Index (SPY), with a loss of approximately 11%, compared to the index’s 22.5% gain.
While investors have become more optimistic about the U.S. economy, thanks to strong jobs reports and the Fed’s 50 basis point cut last month, a weak earnings report from Tesla could reignite concerns about the valuations of tech stocks.
Elevated valuations— the S&P 500 trades at nearly 22 times forward earnings—combined with high corporate earnings forecasts and potential volatility from the upcoming U.S. presidential election could leave stocks vulnerable to a correction.

Gains in Semiconductors​

This week, corporate earnings will take center stage, with results from Texas Instruments (TXN) and equipment company Lam Research (LRCX) being closely watched after a volatile week for the semiconductor sector.
Chip stocks fell on Tuesday after Europe’s largest tech company, ASML (ASML), forecasted lower-than-expected sales and bookings for 2025. However, the sector bounced back on Thursday after TSMC (TSM), a key producer of advanced chips used in artificial intelligence, announced a 54% increase in quarterly profit, surpassing expectations.
Semiconductor and related equipment stocks account for 11.5% of the S&P 500’s total weight.
Other companies reporting earnings next week include Coca-Cola (KO), IBM (IBM), General Motors (GM), and Verizon (VZ).

U.S. Economic Data​

A relatively quiet week is expected on the U.S. economic calendar. However, investors will get updates on the housing sector through new and existing home sales reports. Additional data releases include durable goods orders, consumer confidence, and initial jobless claims.
On Wednesday, the Federal Reserve will release its Beige Book, a report on economic conditions across the central bank’s 12 districts.
Market participants will also have the opportunity to hear from several Fed officials throughout the week, including Minneapolis Fed President Neel Kashkari, Kansas City Fed President Jeffrey Schmid, San Francisco Fed President Mary Daly, Philadelphia Fed President Patrick Harker, and Richmond Fed President Thomas Barkin.

IMF Meetings​

Central bank chiefs and finance ministers from around the world will gather in Washington starting Monday for the annual meetings of the International Monetary Fund (IMF) and the World Bank. They will discuss how countries can navigate an environment of low growth and high indebtedness.
Last week, the IMF warned that global public debt is estimated to exceed $100 trillion by the end of this year, driven by the United States and China.
The IMF noted that high debt levels could provoke adverse market reactions and limit countries’ ability to respond to economic shocks.
Meanwhile, Russian President Vladimir Putin will host a summit of BRICS group leaders starting Tuesday, as the Kremlin seeks support in its confrontation with the West. Russia says that leaders from Brazil, India, China, South Africa, Egypt, the United Arab Emirates, and Saudi Arabia—who collectively account for a third of global economic output—will attend.

Oil Prices​

Oil prices remain under pressure after a roughly 7% decline last week, as energy traders assess weak demand from major importer China and the ongoing conflict in the Middle East.
Data released on Friday showed that China’s economy grew at its slowest pace since early 2023 in the third quarter, although September consumption and industrial production beat estimates.
Analysts noted that economic weakness in China, coupled with the shift toward electric vehicles, is dampening demand prospects for oil.
At the same time, uncertainty persists over how the Middle East conflict will evolve. U.S. President Joe Biden said on Friday that there is a possibility of a deal between Israel and Iran that could temporarily end the conflict in the region.
However, the Lebanese militant group Hezbollah stated on Friday that it was entering a new phase of escalation in its fight against Israeli troops, dashing hopes that the death of Hamas leader Yahya Sinwar would lead to an end to the war.

 

[OnEquity]

Canadians Reluctant to Adopt Digital Dollar, Says Bank of Canada
Research by the Bank of Canada has shown mixed views on the adoption of a Canadian digital dollar. Canadian consumers expressed skepticism about early adoption of a central bank digital currency (CBDC) introduced by the Bank of Canada.

A research paper released by the Bank on October 28 highlighted Canadians’ long-standing preference for traditional payment methods linked to fiat currency, despite growing interest in a digital Canadian dollar. According to a survey conducted in July, Canadians primarily use cash or cards for everyday purchases. Since 2022, fewer than 3% have used Bitcoin or other cryptocurrencies for daily transactions.

Interest in a CBDC Does Not Equate to Adoption​

Approximately 42% of survey respondents had initially positive impressions of a digital Canadian dollar, while around 20% actively disliked the concept. Another 38% held neutral views or lacked understanding of the technology. While participants showed interest in a CBDC as a solution for fiat-based payment limitations, the report emphasized that “interest does not mean adoption.”

Respondents indicated that a digital dollar would require proven reliability, privacy, security, and ease of use from the outset to encourage widespread early adoption. Most participants emphasized that offline functionality was not essential, preferring cash for emergency use.

Canadians Expect a CBDC to Surpass Traditional Payment Systems​

The Bank of Canada concluded that significant investment and public awareness campaigns would be needed to drive the adoption of a digital dollar. Recently, the Bank scaled back its retail CBDC efforts to focus more on payments system research and policy development. Other countries, such as Australia and Colombia, have also postponed their CBDC plans.

 

[OnEquity]

Dollar Slows Gains on Jobs Data, Euro Gains on German GDP
The U.S. dollar eased from recent highs on Wednesday, pausing its rally as markets awaited key macroeconomic data that could impact expectations for Federal Reserve rate cuts.

Dollar Eases Amid Labor Market Data​

The dollar has strengthened recently, bolstered by signs of economic resilience that have led traders to reconsider the pace of Federal Reserve rate cuts. Labor market data has been a central focus, with Tuesday’s report showing U.S. job openings in September were lower than expected, reaching their lowest level since January 2021.

This softer labor data pressured the dollar overnight, as a labor market slowdown could support the Fed’s case for another rate cut at its upcoming November meeting. Markets are now watching for the ADP employment report, due later Wednesday, followed by weekly jobless claims on Thursday and the monthly payroll report on Friday.

Additionally, third-quarter GDP growth figures are expected today, with forecasts suggesting continued robust expansion in the U.S. economy.

German GDP Boosts the Euro​

The EUR/USD rose 0.3% to 1.0850, lifted by better-than-expected third-quarter GDP growth data from Germany. Germany’s gross domestic product rose 0.1% in the third quarter compared to the previous quarter, defying expectations of a slight contraction.

On Tuesday, Germany’s Chamber of Commerce and Industry projected a 0.2% contraction for the eurozone’s largest economy in 2024, revising its May forecast of stagnation. Meanwhile, the European Central Bank has already cut rates three times in 2024 and may lower them again at its next meeting.

The GBP/USD pair dipped to 1.3011 ahead of the British budget, the first under the new Labour government. Finance Minister Rachel Reeves is anticipated to raise both taxes and spending, which remains a cautious approach two years after the market turmoil triggered by former Prime Minister Liz Truss’s tax-cut plans.

Yen Holds as Bank of Japan Meeting Approaches​

The USD/JPY pair declined 0.2% to 153.12 after hitting 154 overnight. The yen’s recent weakness comes as the Bank of Japan is expected to keep rates steady at its meeting on Thursday. Rising political uncertainty may complicate the BoJ’s plans for further rate hikes after two increases earlier this year.

The USD/CNY pair slipped 0.1% to 7.1241, with market attention focused on China’s upcoming Purchasing Managers Index data. Additionally, China’s National People’s Congress, scheduled for early November, is expected to provide further details on plans for increased fiscal spending.

 

[OnEquity]

U.S. Stock Markets Rise, Alphabet Rallies on Positive Results
U.S. stock and index markets rose on Wednesday, buoyed by Alphabet’s gains after the tech giant reported better-than-expected earnings, setting a positive tone for upcoming tech sector earnings.

On Tuesday, Wall Street indexes closed with mixed results as investors flocked to tech stocks, while most other sectors lagged. The Nasdaq Composite Index rose by 0.8%, reaching a record high, and the S&P 500 gained 0.2%, while the Dow Jones Industrial Average dropped by 0.4%..

Alphabet Surges on Strong Earnings​

Alphabet (GOOGL) shares rose nearly 6% pre-market, reaching a three-month high after the company’s stronger-than-expected earnings for the September quarter highlighted successful investments in artificial intelligence. Its cloud business, heavily linked to AI, grew at its fastest pace in eight quarters, while election-related ad spending boosted revenue, particularly on YouTube.

Alphabet’s earnings set a strong precedent for tech sector earnings in the coming days. Meta Platforms (META) and Microsoft (MSFT) are set to report results after Wednesday’s close, followed by Amazon (AMZN) and Apple (AAPL) on Thursday. Conversely, AMD (AMD) dropped nearly 8% after issuing a weaker-than-expected forecast for the current quarter.

Economic Data Flood​

Wednesday brings a range of economic data. Third-quarter GDP data will be released later, expected to confirm strong growth in the U.S. economy. Equivalent Eurozone data, released early Wednesday, surprised with a quarterly growth rate of 0.4%, above the forecasted 0.2%.

Private-sector employment data from ADP, which serves as a precursor to Friday’s nonfarm payrolls, will also be released later, with Thursday bringing the PCE price index, the Federal Reserve’s preferred inflation indicator. These figures may influence interest rate expectations ahead of next week’s Fed meeting, where a 25 basis point rate cut is anticipated.

With the U.S. presidential election on November 5, market volatility is expected to increase. Recent polls show Donald Trump gaining ground on Kamala Harris, intensifying the race.

Crude Oil Rebounds on API Inventory Data​

Oil prices rose on Wednesday, recovering some recent losses after industry data showed an unexpected decline in U.S. inventories. Data from the American Petroleum Institute indicated a drop in U.S. crude stocks by 0.57 million barrels over the last week, countering expectations of a 2.3 million barrel build-up. Official inventory data due later Wednesday could signal a tighter supply in the world’s largest fuel consumer if it aligns with API figures.

 

[OnEquity]

Today’s Stocks to Watch: Alphabet, Reddit, and Snap
Key points:

• Alphabet reports revenue surge driven by artificial intelligence; shares rise
• Reddit posts its first quarterly profit; stock soars
• Snap sees growth in AI-assisted advertising; shares climb

Alphabet Gains from AI Expansion (GOOGL)​

Alphabet, Google’s parent company, reported a 15% revenue growth last quarter, with AI fueling substantial growth in its cloud computing segment. Shares rose by over 6% in pre-market trading.

AMD Declines on Lower Revenue Outlook (AMD)​

Advanced Micro Devices saw its shares drop by 8% in pre-market trading after its quarterly revenue forecast came in slightly below expectations.

Reddit’s First Quarterly Profit Drives Gains (RDDT)​

Reddit announced its first quarterly profit since going public, with revenue boosted by higher ad sales and data licensing. Shares surged over 20% before the market opened.

Trump Media Extends Volatile Streak (DJT)​

Trump Media, the parent company of Truth Social, saw its shares drop by 5% in pre-market trading, continuing a volatile pattern. Trading was halted several times on Tuesday after the stock soared amid speculation on Trump’s potential election win.

Snap Increases Revenue with AI-Driven Ads (SNAP)​

Snap reported a 15% increase in quarterly revenue, slightly surpassing forecasts, with AI playing a key role in boosting ad sales. Shares climbed by 10% in pre-market trading.

Visa Beats Expectations, Plans Workforce Reductions (V)​

Visa posted higher-than-expected revenue and earnings, pushing shares up in pre-market trading. The Wall Street Journal reported that Visa plans to cut around 1,400 employees and contractors.

Chipotle Falls on Disappointing Sales Growth (CMG)​

Chipotle reported quarterly sales growth that fell short of analyst expectations, leading to a drop of more than 4% in its stock price before the close.

UBS Outperforms Following Credit Suisse Integration (UBS)​

UBS saw shares rise nearly 2% in Zurich after its quarterly report exceeded forecasts, supported by increased activity in trading and mergers, as well as lower costs related to the Credit Suisse integration.

Chewy Declines as Prominent Investor Exits (CHWY)​

Chewy shares fell after meme stock icon Keith Gill, known as “Roaring Kitty,” disclosed in a securities filing that he no longer holds a stake in the company.

 

[OnEquity]

Tether Strengthens Reserves with Bitcoin, Gold, and Treasury Bonds for Added Stability
Tether’s CEO, Paolo Ardoino, recently updated the public on the company’s Bitcoin and other asset reserves via the platform X. Ardoino stated that Tether holds over 82,000 Bitcoin (BTC), valued at approximately $5.8 billion based on the current Bitcoin price of $72,433.

Tether’s Reserves: Bitcoin, U.S. Treasury Bonds, and Gold​

Besides its substantial Bitcoin holdings, Tether also owns nearly $100 billion in U.S. Treasury bonds and a gold reserve of over 48 tons. This recent report indicates an increase in Tether’s Bitcoin reserves since Q2 2024, when it held 80,000 BTC. The company also boosted its U.S. Treasury holdings by $7 billion, bringing its total to $97.5 billion.

A Comprehensive Investment Strategy​

Tether’s investment strategy extends beyond solely supporting its stablecoin, USDT. Ardoino explains that Tether’s investment portfolio, valued at around $6.56 billion, is not structured like a traditional venture capital fund. Instead, Tether invests exclusively in technologies that promote independence and resilience in digital assets. “Tether invests only in projects aligned with our mission of disintermediation, independence, and strengthening the future of digital assets,” said Ardoino.

In August, Ardoino highlighted Bitcoin and gold’s increasing strategic importance amid global geopolitical tensions. “With tensions rising worldwide, holding scarce assets like Bitcoin and gold is key,” he emphasized.

USDT Stability and Market Influence​

As the leading issuer of USDT, a stablecoin designed to maintain a 1:1 peg with the U.S. dollar, Tether currently boasts a market capitalization exceeding $120 billion. Its diversification into Bitcoin, gold, and Treasury bonds underscores its commitment to stability, further securing its leadership in the digital asset sector and its role in creating a resilient financial ecosystem in a volatile global environment.

Tether’s AI Development Initiative​

In addition to recent reserve updates, Ardoino introduced Tether’s upcoming AI Software Development Kit (SDK), a modular, privacy-focused tool for peer-to-peer applications. This SDK allows developers to write code once and deploy it across various devices, ranging from entry-level phones to advanced central computers and smart home systems. It’s compatible with multiple models, including Marian and Llama, and uses peer-to-peer frameworks to securely manage data.

Once testing is complete, Tether intends to make the SDK open-source. “The Tether AI SDK is highly modular, compatible with various models, and securely handles data through P2P structures. It will be open-sourced once fully tested,” Ardoino stated. This move aligns with Tether’s broader strategy to embrace open-source AI technology and expand AI capabilities through partnerships and product development, setting new industry standards for privacy-focused applications..

The stablecoin company will develop innovative models and explore partnerships to integrate AI solutions into market-ready products, while also promoting the reach of open AI technology.

 

[OnEquity]

Dollar slips ahead of elections; Fed and BOE also in focus
The U.S. dollar retreated on Monday amid political uncertainty ahead of Tuesday’s presidential election and also amid expectations that the Federal Reserve will cut interest rates this week.

The dollar index, which analyzes the greenback against a basket of six other currencies, fell 0.5% to 103.695, after strong gains in October.

Dollar slips ahead of U.S. elections ​

At the beginning of this week, attention is focused on the U.S. presidential election scheduled for Tuesday, in which the race between the Republican Party candidate and former president, Donald Trump, and his Democratic rival, Vice President Kamala Harris, is very tight.

However, Harris received a noticeable boost when a respected poll in the generally conservative-leaning state of Iowa found her leading Trump by three percentage points, thanks in large part to support among women.

“Markets are apparently scaling back some Trump trading,” mentioned analysts at ING, in a note, ”and we suspect the next two days may see some abnormal swings in USD crosses due to tighter volatility conditions ahead of a hotly contested and highly binary U.S. election.”

Analysts think Trump’s policies on immigration, tax cuts and tariffs would move inflation, the dollar and bond yields higher.

In addition, markets were also positioning themselves positively for a 25 basis point cut by the Fed at the end of its latest two-day policy meeting next week, following the Fed’s decision to roll out a 50 basis point reduction in September.

Friday’s nonfarm payrolls report revealed a dramatic slowdown in job creation during October, although the release was affected by labor disputes and hurricanes.

“Had it not been for the proximity of the vote, we would have argued that a Fed cut would have been net negative for the dollar, but the FX implications of this Fed decision will only be assessed once election volatility has subsided,” ING added.

Euro rallies on improved eurozone data​

In Europe, EUR/USD rose 0.5% to 1.0892, benefiting from a weaker dollar and recent data with a positive tone.

The latest Eurozone manufacturing PMI release saw an increase to 46.0 in October, up from 45.0 last month, according to data released early Monday. Although this data reveals that the sector remains in contractionary territory, it appears that some light may be on the horizon.

“Markets have reduced some pessimistic ECB bets following the latest eurozone growth and inflation figures, but are probably still open to reassessing the possibility of a 50 basis point cut in December if Trump wins this week,” ING added. “The reasoning there is that the ECB will be more inclined to frontload easing given the risk of protectionism under Trump.”

GBP/USD was up 0.3% at 1.2963, bouncing back from the previous week’s losses in the wake of the New Labour government’s budget.

The Bank of England has its meeting scheduled for Thursday and is expected to cut 25 basis points, although this decision has been complicated by a massive sell-off in gilts following the previous week’s budget.

“Markets are likely to be more interested in hearing what the MPC has to say about last week’s budget,” ING mentioned, given that the ”Office for Budget Responsibility views the announced fiscal measures as both pro-growth and inflationary.”

The yen rebounds from three-month lows​

USD/JPY was down 0.6% at 152.11 retreating from recent three-month highs on the back of dollar weakness. The yen also benefited from a somewhat hawkish message from the Bank of Japan the previous week.

USD/CNY is down 0.3% to 71.009 and attention is focused on the NFP Standing Committee meeting that starts on Monday.

The NPC is expected to mark plans for more fiscal spending, with recent reports indicating that the body could greenlight $1.4 trillion in additional debt over the next few years.

 

[OnEquity]

Presidential election and Federal Reserve meeting send U.S. stock market in turmoil
U.S. stock index futures rose Monday in cautious trading at the start of a week that brings a tight presidential election and a Federal Reserve meeting.

At the start of trading Monday, Dow Jones futures were up nearly 60 points, or about 0.1%, S&P 500 futures were up 12 points, or about 0.2%, and Nasdaq 100 futures were also up 12 points, or 0.2%.

Wall Street indexes booked losses of about 1% to #% the previous week, following a series of mixed results from large technology stocks.

Although September quarter earnings mostly beat estimates, the bleak outlook for several major stocks such as Microsoft (MSFT) and Apple (AAPL), in addition to estimates of higher capital spending, weighed on the major tech stocks.

Trump and Harris line up for a tight presidential race​

Investors were on edge ahead of Tuesday’s scheduled presidential election as recent polls indicated a tight race between candidates Donald Trump and Kamala Harris.

Recent rises in the dollar and Treasury yields revealed that some investors were positioning positively for a Trump victory, which is believed to give room for more inflationary policies.

Analysts point out that the outcome could have a significant impact on market performance, especially in the high-tech sector.

Specifically, according to Wedbush analysts, a likely Trump victory would be generating concern among tech investors globally in the wake of a likely escalation of the U.S.-China tech conflict along with rising tariffs.

“A major shift in tariffs and a tougher stance toward China we believe would significantly impact supply chain, Nvidia (NASDAQ:NVDA) (NASDAQ:NVDA), Beijing’s retaliatory impacts on Apple/Tesla likely, and slow the pace of the AI revolution,” analysts led by Dan Ives state in a note.

Earnings season continues this week, with prints from Palantir Technologies (PLTR), Vertex Pharmaceuticals (VRTX) and Diamondback Energy (FANG) scheduled for Monday.

About one-fifth of the companies in the benchmark S&P 500 index will report their latest quarterly results this week.

Fed poised to cut interest rates​

This week, attention will also be focused on the Federal Reserve’s meeting, at which the central bank is expected to cut interest rates by 25 basis points, following the 50 basis point cut in September.

Markets will be awaiting any comments from the Fed on its plans for future rate cuts, especially in light of recent data revealing the resilience of the U.S. economy and the tightness of inflation, which reduces estimates for rate cuts.

Although it is unlikely that Fed Chairman Jerome Powell will commit to any fixed pace of monetary easing, as the Fed has so far maintained a data-driven policy approach.

Still, the meeting comes after Friday’s nonfarm payroll data revealed that job growth slowed sharply in October, with a downward revision to the reading for the past two months, seemingly a sign that the labor market was cooling.

Oil prices soar after OPEC decision​

Oil prices rose sharply on Monday after OPEC+, a group of producing countries, delayed by about a month an estimated production increase for December in the wake of recent pressure on prices from weak demand.

The Organization of the Petroleum Exporting Countries along with its allies, known as OPEC+, made the announcement on Sunday that they will again delay by at least a month an estimated production increase of 180,000 barrels per day.

It is the second time a cut of 2.2 million barrels a day has been extended and may suggest producer countries are concerned about demand around the world.

 

[OnEquity]

Today’s stocks to watch: Trump Media, Nvidia and Apple
Key points:

• Trump Media shares were down more than 20% in the previous week
• Nvidia will replace Intel in the Dow Jones this week
• Viking Therapeutics rose more than 20% after encouraging results

Trump Media & Technology (DJT) shows volatility with a 20% drop​

Trump Media & Technology: The parent company of Donald Trump’s social media platform has behaved with greatvolatility in recent weeks, trading as a proxy for election expectations. Stocks were down in pre-market trading Monday, having lost more than 20% of their valuation in the past week.

Nvidia (NVDA) replaces Intel (INTC) on the Dow Jones​

Nvidia: The chipmaker will join the Dow Jones Industrial Average this week, replacing Intel. Paint maker Sherwin-Williams will take the place of Dow Inc. The new changes will take place before the market opens Friday. Stocks of Nvidia and Sherwin-Williams rallied in premarket trading, while Intel and Dow stocks fell.

Viking Therapeutics (VKTX) rises after promising results​

Viking Therapeutics: Stocks rose more than 20% after the biotech company reported promising results from a trial of its experimental anti-obesity pill. If it proves a success, the pill could rival drugs from Novo Nordisk and Eli Lilly, which must be injected. Novo stocks were down in Denmark, while Eli Lilly stocks were down in U.S. premarket trading.

Berkshire Hathaway cuts its stake in Apple (AAPL) and reduces its stake in Bank of America (BAC)​

Apple: Warren Buffett-owned Berkshire Hathaway cut its stake in Apple by about 25% last quarter, the conglomerate’s report revealed. However, Berkshire remained the iPhone maker’s largest shareholder, Berkshire also reduced its position in Bank of America the previous quarter and continued to sell it in October. It now owns less than 10%.

Boeing (BA) faces crucial union vote​

Boeing: The aircraft builder’s machinists’ union will vote Monday on a labor agreement that, if accepted, would end a debilitating multi-week strike.

Li Auto (LI) and XPeng (XPEV) rise after solid sales​

Li Auto and XPeng: The Chinese electric vehicle makers posted solid sales in October, sending their Hong Kong-listed stocks higher.

The New York Times (NYT) prepares for a possible technical strike​

The New York Times: The newspaper’s dispute with its technology staff is reaching a critical point, with a likely strike threatening to disrupt election coverage. Quarterly results will be released early Monday.

B. Riley Financial (RILY) falls after bankruptcy of Franchise Group​

B. Riley Financial: The investment firm is a major stockholder in Franchise Group, which was filing for bankruptcy on Sunday amid a federal investigation. B. Riley shares were down nearly 18% in premarket trading.

 

[OnEquity]

Market Highlights for the Week: Elections, Fed, and Earnings
This week is set to keep investors on edge, with a closely contested U.S. presidential election and a Federal Reserve meeting that could bring another rate cut. Here’s what to watch for in the markets in the coming days.

U.S. Elections​

Tuesday is Election Day, with early voting already underway in a very tight race between Republican Donald Trump and Democrat Kamala Harris. Recent increases in Treasury yields and the dollar reflect anticipation of a Trump victory in some market sectors. However, polls show a very close race, and a possible Harris win could trigger swift market moves.

Some traders are hoping for a clear outcome, fearing that a contested election and prolonged uncertainty could impact the markets. Only seven states are considered truly competitive, and a poll released Saturday showed Harris with a surprising lead in Iowa, a state Trump had won decisively in the last two elections.

Fed Meeting​

The Fed is expected to cut rates by 25 basis points at its policy meeting this Thursday, with another reduction anticipated in December, following September’s 50-point cut. Friday’s nonfarm payrolls report, which showed a slowdown in job growth in October due to strikes and weather disruptions, supported expectations for a smaller rate cut.

Investors are looking to the Fed statement and Chairman Jerome Powell’s comments at the subsequent press conference for insight into whether officials believe economic resilience will continue and how that may influence the pace of future rate cuts. However, analysts at Morgan Stanley (MS) note that Powell may avoid detailing the size or frequency of future cuts, as the Fed remains data-dependent.

Earnings Season​

The third-quarter earnings season continues this week, although investors may focus more on the election and the Fed meeting.

Palantir (PLTR) and Constellation Energy (CEG) will release their results on Monday, followed by Builders FirstSource Inc. (BLDR), Ferrari (RACE), and Super Micro Computer (SMCI) on Tuesday. SMCI shares were down nearly 45% last week after Ernst & Young resigned as the company’s accountant.

Reports from Qualcomm (QCOM), CVS (CVS), and Arm Holdings (ARM) are expected Wednesday, with investors watching for updates from Arm on its lawsuit against Qualcomm.

On Thursday, Pinterest (PINS), DraftKings (DKNG), Cloudflare (NET), and Affirm (AFRM) will release their results.

 

[OnEquity]

Ripple Prepares Largest XRP Sale in Seven Years
November has arrived, and Ripple is stirring the market as it prepares for what could be its largest monthly XRP sale in seven years. Ripple, the lead developer of XRP Ledger (XRP) and its largest investor, has set aside 470 million XRP for sale, valued at approximately $240 million.

Since 2017, Ripple has been unlocking 1 billion XRP each month, setting aside a portion—usually 200 million XRP—for sale. In November, Ripple unlocked its usual 1 billion XRP, but this time, it reserved more than double the usual amount.

This Month’s Unlocks and Ripple’s Unprecedented Move​

This month’s unlocks were completed in the Ripple (24) and Ripple (25) accounts, releasing 500 million XRP each as usual. The Ripple (25) account locked its entire amount for re-deposit until 2028 in the Ripple (12) and Ripple (13) accounts, as is customary.

However, Ripple (24) only re-locked 30 million XRP in Ripple (12) and transferred 470 million XRP to Ripple (1), the account historically used for monthly sales. This unexpected move has raised concerns among investors, as a sale of this magnitude could significantly impact XRP’s price, potentially affecting XRP investors.

Ripple’s History of Unlocks and Large XRP Sales​

Ripple’s largest sale to date occurred in June when it reserved 200 million XRP and added another 200 million from Ripple’s dormant account (35), according to Finbold reports. This massive and unprecedented sale concluded on June 20, with a total of 400 million XRP sold.

Following that sale, the price of XRP dropped by nearly 20% between June 1 and July 7, highlighting the financial impact of such large-scale selling. No record of such a large release had been seen since 2017 when Ripple implemented its trust system to increase transparency.

Currently, XRP is trading at $0.511, marking an 18.70% loss for the year. Ripple has sold 2.576 billion XRP so far in 2024, with the largest sales recorded in June (400 million), September (350 million), and July (300 million).

What’s Next for XRP as Ripple Could Sell Over 470 Million Tokens?​

In previous months, Ripple had reserved only the usual 200 million XRP from its monthly unlocks. Additional sales pressure typically came from inactive accounts during the month, unlike the higher amount seen in November.

This raises the possibility that Ripple could add even more selling pressure to the already record 470 million XRP. This increase in activity comes just days before the U.S. presidential election, as Ripple co-founder Chris Larsen disclosed a $10 million donation to Kamala Harris’s campaign, made after recent sales.

“It’s time for Democrats to take a new approach to technology innovation, including cryptocurrencies. I believe Kamala Harris will ensure that American technology leads globally, which is why I’m donating $10 million USD in XRP in support,” stated Chris Larsen.

Ripple has not disclosed specific details about these recent sales but has outlined its sales model on several occasions. According to sources, Ripple uses an on-demand liquidity (ODL) model for its XRP sales, selling at market price to willing customers.

Moreover, the cryptocurrency community anticipates that the election results could have a significant impact on the market. XRP investors and traders should closely monitor Ripple’s next moves, as these may depend on the election’s outcome in the coming days.

 

[OnEquity]

Dollar Slips as U.S. Elections Loom, Uncertainty Prevails
The U.S. dollar dipped slightly on Tuesday as it approached a closely contested presidential election, the outcome of which could lead to significant market moves.

The Dollar Index, which tracks the greenback against a basket of six currencies, fell 0.1% after declining overnight to its lowest since October 21, contrasting with last week’s highs, the highest since late July.

Dollar Retreats on U.S. Elections​

The dollar has been impacted partly by a retreat in the “Trump trade” as recent polls show Donald Trump and Kamala Harris locked in a tight race for the presidency, with most voting occurring today, Tuesday.

In recent weeks, financial markets had been favoring a Trump victory, as his policies on tariffs and immigration are deemed inflationary by analysts, supporting gains in U.S. yields and the dollar.

“With an exceptionally close U.S. election just around the corner and the outcome likely to have a binary impact on FX markets, the FX options market is trading with heightened volatility,” noted analysts at ING.

“Given the dollar’s rally in October, we believe a ‘red sweep’ is needed for the dollar to continue to rise. A Harris victory would likely appear benign and prove negative for the dollar.”

The Federal Reserve also meets later this week, with markets expecting a rate cut of 25 basis points, a smaller reduction than the 50-basis-point cut seen in September.

Traders will be closely monitoring any additional comments from Fed Chairman Jerome Powell regarding future rate cuts, especially as recent data indicates persistent inflationary pressures and economic resilience. However, recent labor market weakening could keep the Fed on course for further easing.

Euro Linked to U.S. Election Results​

In Europe, the EUR/USD rose 0.2% to 1.0893, after reaching 1.0914 in the previous session for the first time since October 15, with the euro benefiting from dollar weakness.

Despite the gains, the euro faces regional economic challenges, with France’s industrial production down 0.9% month-on-month in September, along with uncertainty stemming from the U.S. election.

“For this week, expect the fallout from the U.S. election to dominate,” added ING. “A Trump victory without control of the House could be a worst-case scenario for EUR/USD, as global growth might not benefit from U.S. tax cuts, potentially forcing the ECB to cut rates further into accommodative territory.”

GBP/USD also rose 0.2% to 1.2980 after the Bank of England authorized a further rate cut of 25 basis points expected on Thursday.

Australian Dollar Rises after RBA Meeting​

USD/JPY rose slightly to 152.16, while the Japanese yen held near its weakest level in three months. USD/CNY rose to 7.1077, with attention focused on the NPC Standing Committee meeting, expected to provide more insights into China’s fiscal stimulus plans.

AUD/USD climbed 0.5% to 0.6618 after the Reserve Bank of Australia held monetary policy steady on Tuesday, as expected.

However, RBA Governor Michele Bullock adopted a notably hawkish tone during her press conference, suggesting there are still upside risks.

“The Australian dollar could emerge as a big winner if Harris prevails over Trump,” stated ING. “In such a scenario, the tariff threat from China would likely be significantly reduced.”

 

[OnEquity]

U.S. Stock Markets Rise on Day Marked by Presidential Election and Federal Reserve Meeting
U.S. stock index futures and equities rose slightly on Tuesday, recovering some ground after recent sharp losses as investors prepared for a close presidential election and an anticipated Federal Reserve meeting.

Major indexes were lower on Monday, with the S&P 500 and Nasdaq Composite losing 0.3%, while the Dow Jones Industrial Average fell 0.6%, extending losses from the previous week, as risk appetite remained subdued amid tense market signals.

Trump and Harris Set for Close Presidential Election​

Investors appeared nervous as the latest polls indicated a tight race between Donald Trump and Kamala Harris in the presidential election, which begins voting on Tuesday. Although earlier polls showed Trump gaining ground, this trend seemed to shift approaching Election Day.

Trump is expected to push for more inflationary policies and stricter trade tariffs on China, which could impact the high-tech sector negatively. Harris, on the other hand, has proposed raising taxes on high-net-worth individuals and large corporations while easing the tax burden on families.

Federal Reserve Prepares to Cut Interest Rates​

The Federal Reserve is also meeting this week, where it is expected to reduce interest rates by 25 basis points, following a 50-basis-point cut in September. Recent data revealing persistent inflation and economic resilience in the U.S. has left some uncertainty about the Fed’s rate-cut trajectory in the months ahead, as the central bank has stated that its easing strategy will remain data-driven.

Still, weak nonfarm payroll data released on Friday suggested the labor market may be cooling, which could keep the Fed leaning toward further rate cuts. All eyes will be on Fed Chairman Jerome Powell’s remarks on the central bank’s plans for future rate adjustments.

Quarterly Earnings Continue​

Third-quarter earnings have delivered mixed results following a wave of lackluster reports from big tech companies last week. On Tuesday, results are expected from Super Micro Computer (SMCI) and Yum! Brands (YUM). Palantir Technologies (PLTR) rose more than 12% in premarket trading after its earnings exceeded estimates, alongside providing a positive revenue outlook.

Meanwhile, Dollar Tree (DLTR) gained 5% after the discount retailer announced that CEO Rick Dreiling would step down, with COO Michael Creedon Jr. stepping in as interim CEO. Boeing (BA) shares rose 2% after striking workers approved the company’s latest contract offer, ending a prolonged strike that had significantly disrupted production for nearly two months.

 

[OnEquity]

Today’s Stocks to Watch: Boeing, Trump Media, and Palantir
Key points:

• Trump Media & Technology shares rise 10% on election volatility
• Cleveland-Cliffs falls 6% on quarterly losses
• Palantir rises 14% on higher revenue guidance

Trump Media & Technology Shares Up 10% (DJT)​

Stock in the parent company of Truth Social was up 10% in recent trading before the market opened. The stock has been volatile for weeks, acting as a proxy for election expectations.

Tech Firm Palantir (PLTR) Boosts Sales and Expectations​

The software company reported strong sales and raised its revenue forecast due to high demand for its artificial intelligence products. Shares jumped 14% in pre-market trading.

Boeing (BA) Finalizes Labor Agreement​

The aircraft maker’s machinists endorsed a new labor agreement Monday night, ending a weeks-long strike and clearing the way to resume factory operations. Shares were up 1.5% in preliminary trading.

DuPont (DD) Improves Earnings and Raises Annual Guidance​

The chemicals and materials company posted better-than-expected quarterly earnings and raised its outlook for the year. The stock rose in the previous session.

Cleveland-Cliffs (CLF) Suffers Quarterly Loss​

The steelmaker reported a quarterly net loss and a revenue decline due to weak demand from the automotive sector. Shares fell 6% in pre-market trading. Cleveland-Cliffs is optimistic about its recent acquisition of Canadian producer Stelco (STLC), which has less exposure to the automotive market.

Dollar Tree (DLTR) Rises Following CEO’s Departure​

Shares of the discount retailer rose 4% in pre-market trading after CEO Rick Dreiling resigned, citing health concerns. The company is now searching for a replacement.

Archer Daniels Midland (ADM) Cuts Profit Forecast​

The agricultural company disclosed additional accounting issues and lowered its annual profit forecast. Shares were down 6% in after-hours trading.

Hims & Hers Health Increases Sales and Profits (HIMS)​

The telehealth company posted a quarterly profit and raised its annual sales forecast, driven by demand for weight-loss drugs. Shares rose after the close.

 

[OnEquity]

Cardano and Bitcoin: A Revolution in the Making?
In a recent YouTube “Ask Me Anything” (AMA), Charles Hoskinson, co-founder of Cardano (ADA) and Ethereum (ETH), surprised his audience by discussing a potential revolutionary integration between Cardano and Bitcoin (BTC). During the November 2 event, Hoskinson reflected on the possibility of establishing a “trustless bridge” between the two networks, enabling unprecedented interoperability.

Hoskinson noted that while he previously believed Bitcoin innovation had stagnated after the Taproot upgrade in 2021, the Bitcoin development team recently validated zero-knowledge proofs on the BTC mainnet, opening the door to a new era of cross-chain collaboration.

The Vision of a Trustless Bridge Between Bitcoin and Cardano​

Hoskinson explained that, if realized, this integration could allow users to access Cardano’s decentralized applications (dApps) directly from the Bitcoin ecosystem, creating a unified experience. This could enable hybrid applications, such as a Bitcoin-supported wallet with a dApps store, allowing users to interact with Cardano while remaining within the Bitcoin environment.

According to Hoskinson, a trustless bridge would be revolutionary, potentially offering Cardano access to Bitcoin’s vast community and its estimated $1.3 trillion market. However, he acknowledged significant technical challenges that currently keep this integration “hypothetical.”

Potential Benefits of Integration for Cardano​

Hoskinson emphasized the integration’s potential to renew interest in Cardano, which has seen a decline in user engagement. Despite strong performance early in 2024, ADA’s value has dropped 43.73% year-to-date, now priced at $0.32, while Bitcoin has gained 62.79%, reaching $69,112. This integration could attract Bitcoin users to Cardano, sparking renewed interest in its dApps.

Current data from DeFiLlama shows a decline in Cardano’s total value locked (TVL), which fell from $248.6 million in September to $207.08 million by November 4. Integrating with Bitcoin could be vital in revitalizing Cardano’s ecosystem.

Technical Challenges and the Future of Cardano-Bitcoin Integration​

Despite his enthusiasm, Hoskinson acknowledged the technical complexities of developing a trustless bridge between Bitcoin and Cardano. To make this vision a reality, critical challenges need addressing, including network synchronization, latency management, and security.

Hoskinson’s concept of a trustless bridge between Bitcoin and Cardano holds transformative potential for the cryptocurrency ecosystem. By providing a hybrid user experience and fostering greater engagement from the Bitcoin community, Cardano could see significant growth in users and market value. Overcoming the technical hurdles will be essential, making this ambitious project a top development priority with immense potential for the future.

 

[OnEquity]

Dollar Soars After Trump Victory, Euro, Pound, and Yen Strongly Retreat
The U.S. dollar surged on Wednesday, where it is poised to score its biggest one-day gain since March 2020, as Donald Trump moved closer to victory for the White House, while a Republican sweep in Congress looked possible.

The dollar index, which tracks the greenback against a basket of six other currencies, rose 1.4% to 104.737, reaching a four-month high of 105.237 earlier in the session.

Dollar Soars on Trump’s Return to the U.S. Presidency​

Republican candidate Donald Trump declared himself the winner of the U.S. presidential election early Wednesday, though the race has not yet been officially called. Trump claimed his victory provides a “powerful mandate” to implement his various economic policies.

The Republican Party has also gained a majority in the Senate and appears set to win the House of Representatives as well. A Republican-controlled Congress would ease the path for Trump to enact substantial policy changes, with his tariff and immigration policies seen as inflationary by analysts, thus strengthening the dollar.

“Trump trading is in full swing as the U.S. vote count continues,” analysts at ING noted in a report. “If the growing consensus for a Republican clean sweep materializes, we expect a prolonged period of dollar outperformance.”

The Federal Reserve concludes its meeting on Thursday, with markets anticipating another rate cut—this time of 25 basis points, rather than the more significant reduction seen in September.

Euro Declines​

In Europe, EUR/USD plummeted nearly 1.5% to 1.0762, hitting its lowest level since early July, as the possibility of Trump’s second term in office became more real.

“The euro has proven to be the weakest of the G10 currencies overnight, and you can see why,” ING added. “The expectation is that Trump will broaden his China-centric trade policies in a second term, at a time when the eurozone, especially Germany, is grappling with stagnant growth. Plans to export out of stagnation are no longer a viable option for the eurozone.”

This euro weakness persisted despite a mild rebound in Germany’s services sector. October business activity posted a three-month high, with the PMI rising to 51.6 from 50.6 in September—the first acceleration in growth in five months.

GBP/USD dropped 1% to 1.2917 as the Bank of England is expected to implement another 25 basis point rate cut on Thursday. This would mark its second reduction following a cut in August, the first in four years. A cut was almost certain before last week’s budget, but higher-than-expected government spending and borrowing have introduced some uncertainty.

Asian Currencies Grapple with Trump’s Policy Stance​

USD/JPY surged 1.6% to 153.95, reaching over three-month highs as Trump’s victory appeared imminent. Yen weakness has kept traders cautious about potential government intervention in the currency markets, given recent warnings from Japanese officials.

USD/CNY climbed 0.8% to 7.1579, with the yuan weakening as Trump reiterated his intent to impose heavy tariffs on China if re-elected, posing a challenging outlook for the Chinese currency.

This week’s focus will also include a meeting of China’s National People’s Congress, where the government is expected to approve increased fiscal spending for the years ahead.

AUD/USD fell 0.9% to 0.6579, as Australia faced potential economic strain due to Trump’s proposed tariffs on China, given Australia’s close trade ties with the region.

 

[OnEquity]

Dow Stocks Rise 1,255 Points on Trump’s White House Win
U.S. stock index futures surged Wednesday following Donald Trump’s election as the 47th President of the United States, as Republicans appeared on course to control both the Senate and the House of Representatives.

At the start of trading, Dow Jones futures were up nearly 1,255 points, up 3%, S&P 500 futures were up 133 points, up slightly 2.3%, and Nasdaq 100 futures were up 345 points, up slightly 1.7%.

Trump Wins White House, Republicans Likely to Sweep​

The Associated Press and other major news networks reported Trump as the winner of the 2024 presidential election, confirming his return to the White House. Additional early coverage indicated that Republicans had gained a majority in the Senate and were also likely to secure the House of Representatives, making a full Republican “sweep” in 2024 more probable.

“The big question for markets now is whether Trump’s victory will bring total Republican control or a divided government. If Republicans secure both houses, Trump could have more latitude to cut corporate taxes, potentially boosting investor confidence,” said Russell Shor, senior market specialist at Tradu.

Republican control of Congress—known as the “red sweep”—would make it easier for Trump to enact substantial policy changes. Trump is expected to pursue more inflationary policies due to his protectionist stances on issues from immigration to trade. This prospect boosted the dollar and Treasury yields, with the greenback reaching a four-month high.

A quick conclusion to this year’s presidential election has also relieved some uncertainty for the equity markets, especially given the turbulence that surrounded the last presidential election.

Federal Reserve Meeting in the Spotlight​

Wall Street indexes rose sharply on Tuesday, recovering some recent losses as technology stocks gained, with risk appetite fueled by anticipation of a Federal Reserve rate cut at the end of the week. The S&P 500 rose 1.2%, the Nasdaq Composite gained about 1.4%, and the Dow Jones Industrial Average was up around 1%.

All three indices rebounded from the all-time highs reached in late October, which were affected by mixed earnings results from major tech companies and uncertainty about future Fed rate cuts.

The Fed is widely expected to cut interest rates by 25 basis points at the end of its two-day meeting on Thursday. Any indications of the Fed’s future rate cut plans will be closely watched, given recent signs of persistent inflation in the U.S. The central bank has emphasized a data-driven approach in deciding on future policy easing.

Crude Oil Prices Down After API Release​

Oil prices declined on Wednesday after industry data indicated a rise in U.S. crude inventories, while the dollar gained on Trump’s election news. Data from the American Petroleum Institute (API) released on Tuesday showed that U.S. crude inventories increased by 3.13 million barrels last week, surpassing the expected 1.1 million-barrel increase.

Official inventory data will be released later on Wednesday, but if the API figures are confirmed, it could heighten concerns about weakening fuel demand in the U.S., especially as the winter season approaches.

 

[OnEquity]

Today’s Stocks to Watch: Tesla and Coinbase
Key points:

• Several stocks led the market with notable fluctuations
• Tesla and DJT stood out for strong pre-market performance
• Investors are focused on cryptocurrencies and regulatory shifts

Trump Media & Technology (DJT) Surges​

Trump Media & Technology (DJT) stock saw a sharp rally in pre-market trading, spurred by the announcement of Donald Trump’s re-election. The news boosted confidence in its social media platform.

Tesla (TSLA) Rises​

Tesla rallied 12% ahead of the opening bell. Elon Musk’s company, which openly supported Trump’s campaign, benefited from the wave of market optimism.

JPMorgan Chase (JPM), Bank of America (BAC), and Goldman Sachs (GS) Rally​

Major U.S. banks like JPMorgan Chase, Bank of America, and Goldman Sachs experienced pre-market gains, driven by expectations of relaxed regulation and higher interest income.

Coinbase (COIN) and Bitcoin (BTC) Gain​

Coinbase shares rose 13% in after-hours trading, bolstered by Bitcoin’s price increase. MicroStrategy (MSTR), known for significant Bitcoin holdings, also saw gains. Trump’s administration has pledged to position the U.S. as a global cryptocurrency leader.

Declines in Plug Power (PLUG), SunRun (RUN), First Solar (FSLR), and Enphase Energy (ENPH)​

Renewable energy companies like Plug Power and First Solar posted significant declines, as Trump intends to redirect unused funds from the Inflation Reduction Act, potentially impacting the sector.

Novo Nordisk (NVO) Exceeds Expectations​

Novo Nordisk reported better-than-expected sales of its weight-loss drug Wegovy, causing shares to rise 7%. Competitor Eli Lilly (LLY) also gained.

Super Micro Computer (SMCI) Faces Challenges​

Server maker Super Micro Computer fell in after-hours trading after reporting lower quarterly revenue. The company is also undergoing an internal audit following the resignation of its auditor.