NEW YORK (AP) — U.S. stocks rose Monday, led by those seen as benefiting the most from Donald Trump’s reelection as president, but drops for some high-profile Big Tech stocks kept indexes in check.
The S&P 500 edged up by 0.1%, coming off its best week of the year following Trump’s victory and a cut to interest rates by the Federal Reserve to bolster the economy. The Dow Jones Industrial Average rose 304 points, or 0.7%, while the Nasdaq composite gained 0.1%.
Tesla was the strongest force pushing upward on the S&P 500 after rising 9.1%. Its leader, Elon Musk, has become a close ally of Trump’s, and its stock jumped nearly 15% the day after the election and has kept rising.
Several pieces of what’s known as the “Trump trade” also helped drive the market, as investors try to identify which companies will be winners under a second Trump term. JPMorgan Chase rose 1%, and financial stocks again helped lead the market on expectations for stronger economic growth, less regulation from Washington and an increase in mergers and acquisitions.
A White House more friendly to big tie-ups has helped Wall Street speculate about a merger between insurers Cigna Group and Humana, for example. It’s been so feverish that Cigna said Monday it isn’t pursuing a deal with Humana. Cigna’s stock rose 7.3%, and Humana’s sank 2%.
Stocks of companies more focused on the U.S. economy were also rising more than the rest of the market, including a 1.5% rally for the smaller stocks in the Russell 2000 index, because they’re seen as benefiting more from Trump’s America First policies than big multinational companies.
They helped offset a drop of 1.6% for Nvidia, which was the heaviest weight on the market.
Such Big Tech stocks have rocketed higher on excitement about artificial-intelligence technology, and they had been gaining almost regardless of what the economy was doing. Now, though, critics say their prices look too expensive, and investors are finding more interesting buys among companies that could benefit more from Trump’s second term.
A drop for Nvidia packs a particularly heavy punch because its massive value of nearly $3.6 trillion makes it one of the most influential stocks on the S&P 500 and other indexes.
AbbVie, meanwhile, tumbled 12.6% after saying trials investigating its treatment for some adults with schizophrenia failed to show statistically significant improvement compared with a placebo group at week six.
Some of the sharpest swings were in the crypto market, where bitcoin rose above $87,000 for the first time. Trump has embraced cryptocurrencies generally and pledged to make his country the crypto capital of the world. Bitcoin hit a record of $87,491, according to CoinDesk.
Another Trump trade has been a rise in Treasury yields, as traders anticipate potentially higher economic growth, U.S. government debt and inflation because of Trump’s policies. But trading in the bond market was closed Monday in observance of Veterans Day.
Treasury yields been generally climbing since September, in large part because the U.S. economy has remained much more resilient than feared. The hope is that it can continue to stay solid as the Federal Reserve continues to cut interest rates in order to keep the job market humming, now that it’s helped get inflation nearly down to its 2% target.
But Trump’s win has scrambled expectations for coming cuts to rates. Traders have already begun paring forecasts for how many the Fed will deliver next year. While lower rates can boost the economy, they can also give inflation more fuel.
Still, many professional investors warn not to get carried away by all the big swings following Trump’s victory. It takes time to see what campaign promises turn into actual policy, and that can lead to snaps back for the market’s initial knee-jerk reactions.
The U.S. stock market is also broadly looking more expensive, as prices continue to run up faster than corporate profits.
“Valuations are increasingly elevated, and the pace of growth isn’t sustainable,” according to Mark Hackett, chief of investment research at Nationwide. “While near-term seasonality will be a strong tailwind for markets, valuations may prove to be a tipping point as we move into 2025.”
All told, the S&P 500 rose 5.81 points Monday to 6,001.35. The Dow gained 304.14 to 44,293.13, and the Nasdaq composite added 11.99 to 19,298.76.
Stock markets abroad have swung following Trump’s election amid worries about increased tariffs and disruptions to global trade. They were mixed Monday, with European indexes rising while South Korea’s and Hong Kong’s sank.
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AP Writer Zimo Zhong in Hong Kong contributed to this report.
FILE - A train arrives at a Wall Street subway station in New York's Financial District on Nov. 5, 2024. (AP Photo/Peter Morgan, File)
People stand in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, Nov. 11, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Monday, Nov. 11, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)
KYIV, Ukraine (AP) — North Korean troops are suffering heavy losses in the fighting in Russia's Kursk region and facing logistical difficulties as a result of Ukrainian attacks, Ukraine’s military intelligence said Thursday.
The intelligence agency, known under its acronym GUR, said Ukrainian strikes near Novoivanovka inflicted heavy casualties on North Korean units. It said North Korean troops also faced supply issues and even shortages of drinking water.
Ukrainian President Volodymyr Zelenskyy said earlier this week that 3,000 North Korean troops have been killed and wounded in the fighting in the Kursk region. It marked the first significant estimate by Ukraine of North Korean casualties several weeks after Kyiv announced that North Korea had sent 10,000 to 12,000 troops to Russia to help it in the almost 3-year war.
The casualty disclosure came as the Biden administration was pressing to send as much military aid as possible to Ukraine before President-elect Donald Trump takes over in January.
Ukrainian forces launched an incursion into the Kursk region in August, dealing a significant blow to Russia's prestige and forcing it to deploy some of its troops from eastern Ukraine, where they were pressing a slow-moving offensive.
The Russian army has been able to reclaim some territory in the Kursk region from Ukrainian forces, but has failed to fully dislodge them.
At the same time, Russia has sought to break Ukraine's resistance with waves of strikes with cruise missiles and drones against Ukraine's power grid and other infrastructure.
The latest attack on Christmas morning involved 78 missiles and 106 drones, striking power facilities, Ukraine’s air force said. It claimed to have intercepted 59 missiles and 54 drones and jammed 52 other drones.
On Thursday, Russia attacked Ukraine with 31 exploding drones. Twenty were shot down and another 11 didn’t reach their target due to jamming, the Ukrainian air force said.
As part of the daily barrage, Russian forces also struck a central market in Nikopol in the Dnipropetrovsk region with a drone, wounding eight people, according to local authorities.
Russian President Vladimir Putin threatened Thursday that Russia could again hit Ukraine with the new Oreshnik hypersonic ballistic missile that was first used in a Nov. 21 strike on the Ukrainian city of Dnipro.
Speaking to reporters, Putin said Russia has just a few Oreshnik missiles, but added that it wouldn't hesitate to use them on Ukraine.
“We aren't in a rush to use them, because those are powerful weapons intended for certain tasks,” he said. “But we wouldn't exclude their use today or tomorrow if necessary.”
Putin said Russia has launched serial production of the new weapon and reaffirmed a plan to deploy some of Oreshnik missiles to Russia's neighbor and ally Belarus. Belarus' authoritarian President Alexander Lukashenko told reporters Thursday that his country could host 10 or more.
Ukraine struck back with drone strikes of its own. Ukraine’s Center for Strategic Communications said the military struck a plant in Kamensk-Shakhtynsky in Russia’s southern Rostov region that produces propellant for ballistic missiles.
“This strike is part of a comprehensive campaign to weaken the capabilities of the Russian armed forces to carry out terrorist attacks against Ukrainian civilians,” it said in a statement.
A Ukrainian AS-90 self-propelled artillery vehicle fires towards Russian positions at the frontline on Pokrovsk direction, Donetsk region, Ukraine, Wednesday, Dec. 23, 2024. (AP Photo/Evgeniy Maloletka)
A medic treats an injured Ukrainian serviceman at Medical Service "Ulf" of the 108th Separate Battalion "Da Vinci Wolves" on Pokrovsk direction, Ukraine, Monday, Dec. 23, 2024. (AP Photo/Evgeniy Maloletka)
An injured Ukrainian serviceman walks out of an ambulance at Medical Service "Ulf" of the 108th Separate Battalion "Da Vinci Wolves" on Pokrovsk direction, Ukraine, Tuesday, Dec. 24, 2024. (AP Photo/Evgeniy Maloletka)
Injured Ukrainian servicemen arrive from the battlefield at Medical Service "Ulf" of the 108th Separate Battalion "Da Vinci Wolves" on Pokrovsk direction, Ukraine, Monday, Dec. 23, 2024. (AP Photo/Evgeniy Maloletka)
Medics haul an injured Ukrainian serviceman on a stretcher from an ambulance at Medical Service "Ulf" of the 108th Separate Battalion "Da Vinci Wolves" on Pokrovsk direction, Ukraine, Tuesday, Dec. 24, 2024. (AP Photo/Evgeniy Maloletka)
A medic treats an injured Ukrainian serviceman at Medical Service "Ulf" of the 108th Separate Battalion "Da Vinci Wolves" on Pokrovsk direction, Ukraine, Monday, Dec. 23, 2024. (AP Photo/Evgeniy Maloletka)
A medic checks the ear of an injured Ukrainian serviceman at Medical Service "Ulf" of the 108th Separate Battalion "Da Vinci Wolves" on Pokrovsk direction, Ukraine, Tuesday, Dec. 24, 2024. (AP Photo/Evgeniy Maloletka)
A medic helps an injured Ukrainian serviceman walk out of an ambulance at Medical Service "Ulf" of the 108th Separate Battalion "Da Vinci Wolves" on Pokrovsk direction, Ukraine, Tuesday, Dec. 24, 2024. (AP Photo/Evgeniy Maloletka)
An injured Ukrainian serviceman takes off his shirt after arriving from the battlefield at Medical Service "Ulf" of the 108th Separate Battalion "Da Vinci Wolves" on Pokrovsk direction, Ukraine, Monday, Dec. 23, 2024. (AP Photo/Evgeniy Maloletka)
A medic treats an injured Ukrainian serviceman at Medical Service "Ulf" of the 108th Separate Battalion "Da Vinci Wolves" on Pokrovsk direction, Ukraine, Monday, Dec. 23, 2024. (AP Photo/Evgeniy Maloletka)
