Trump Trades Boost Stocks & Crypto, Despite Geopolitics – US Market Wrap

Stocks rose, recovering from early losses caused by swings in Nvidia and concerns about the war in Ukraine, as traders considered a new administration committed to deregulation. Bitcoin soared past $98,000, while the dollar strengthened and Treasury yields increased.

Big tech rallied, with the Nasdaq 100 rising 0.4% after falling more than 1% earlier in the session, and the S&P 500 rising 0.6%. Nvidia’s fierce rally came to a halt after the company’s outlook fell short of Wall Street’s lofty expectations, but the stock resumed its climb in the final hours of trading.

Bitcoin is rapidly approaching $100,000 on bets that President-elect Donald Trump’s support for cryptocurrency and looser regulations will lead to an industry boom. The planned departure of Securities and Exchange Commission Chairman Gary Gensler is expected to benefit deregulation and digital assets. According to reports, Chris Giancarlo, a former chairman of the Commodity Futures Trading Commission, is being considered as the incoming administration’s first “crypto czar”.

Matt Gaetz, Trump’s pick to overhaul the Justice Department, withdrew from consideration for the position due to sexual misconduct allegations. It is unclear who Trump will nominate to lead the US Treasury.

“The contest for the Treasury Secretary appears to have come down to Bessent, Rowan, and Warsh – all of whom fall into the category of qualified adults in the room,” according to BMO’s Ian Lyngen. “Clarity is always preferable from the market’s perspective.”

Ten-year US government bond yields remained steady at 4.42%, and the dollar rebounded following mixed labor data. Jobless claims were lower than expected, while continuing claims, which measure the number of people receiving benefits, reached a three-year high