Stocks rallied with major benchmarks hitting record highs as Donald Trump won the 2024 presidential election.
The Dow Jones Industrial Average soared 3.4% to a record, with the S&P 500 climbing 2.4% to reach an all-time high. The Nasdaq Composite also reached a peak, up 2.7%.
The Russell 2000 small-cap benchmark jumped 5.4% as investors figured smaller, more domestically focused and cyclical companies would see gains from Trump’s tax cuts and protectionist policies.
Bitcoin, which could benefit from relaxed regulation, also soared to an all-time high of $75,000.
S&P 500 big stock movers today
Five S&P 500 stocks making big midday moves are:
Discover Financial Services (DFS) +18.6% Synchrony Financial (SYF) +18.5% Nucor (NUE) +16.5% Trimble (TRMB) +15.1% Tesla (TSLA) +14.8%
The worst-performing five S&P 500 stocks with the largest midday drop are:
Super Micro Computer (SMCI) -22.8% Enphase Energy (ENPH) -16.7% First Solar (FSLR) -11.1% International Flavors & Fragrances (IFF) -10.8% Iron Mountain (IRM) -10%
Stocks also worth noting include:
Nvidia (NVDA) +4.4%Apple (AAPL) +0.3%CVS Health (CVS) +12.1%Palantir (PLTR) +6.0%Trump Media (DJT) +3.8%
CVS Health stock is down 22% year-to-date.
CVS surges after mixed earnings
CVS gained 12% after the company reported mixed third-quarter results as high medical costs continued to weigh on profit.
The company earned $1.09 per share adjusted, missing analysts’ forecast of $1.51. Revenue of $95.43 billion surpassed the consensus estimate of $92.75 billion.
CVS Health also revised its profit forecast downward for the year to a range of $6.40 to $6.65 per share and announced a plan to cut $2 billion in costs over the coming years.
Related: CVS Health stock crushed as Medicare Advantage hit triggers big changes
CVS’s insurance unit is facing pressure. The segment reported a $924 million adjusted operating loss as revenue rose 25% from a year earlier to $33 billion.
Its medical benefit ratio rose to 95.2% from 85.7%, indicating higher medical expenses relative to premiums, which pressures profitability.
The stock is down 22% year-to-date.
Tesla rallies after Trump wins election
Tesla shares surged 15% after Donald Trump’s election win, with investors speculating the victory could benefit CEO Elon Musk.
Musk has donated $75 million to the American PAC, which supports Trump. In October, he claimed that he could cut at least $2 trillion from the federal budget, laying out his vision for substantial government spending cuts if Trump won the presidency.
Related: Tesla analysts update views after Q3 deliveries
Trump had said that if he won, he would appoint Musk to head a government efficiency commission.
Trump has been viewed as unfriendly to clean energy stocks, but some investors figure that his plan to impose tariffs on foreign goods would help Tesla fend off competition from non-U.S. electric-vehicle producers.
“We believe a Trump presidency would be an overall negative for the EV industry as likely the EV rebates/tax incentives get pulled. However, for Tesla, we see this as a huge positive,” the Wedbush Securities analyst Dan Ives said, according to CNBC.
Super Micro Computer tumbles on weak earnings
Super Micro shares plunged 23% after the company issued disappointing unaudited financials and failed to detail a plan to secure its Nasdaq listing.
Super Micro reported adjusted fiscal-first-quarter earnings per share of 75 to 76 cents, slightly above analysts’ estimate of 73 cents. Revenue came in at $5.9 billion to $6 billion versus the expected $6.44 billion.
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The AI-server company’s forecast for the December quarter was also below estimates. Adjusted earnings per share are pegged at 56 cents to 65 cents, while analysts were looking for 83 cents. Revenue is estimated at between $5.5 billion and $6.1 billion, trailing the $6.86 billion analyst estimate.
The server maker has faced financial issues, including the recent resignation of its auditor, Ernst & Young, amid the short-selling investor Hindenburg Research’s allegations of accounting irregularities and potential violation of export controls due to shipments of sensitive chips to sanctioned countries.
Super Micro CEO Charles Liang responded by stating that the Hindenburg report contained “false or inaccurate statements.” Super Micro also said it disagreed with Ernst & Young’s decision to resign, but has taken the concerns on the company’s governance and transparency seriously, Yahoo Finance reported.
SMCI stock has fallen more than 80% from its March high.
Related: Veteran fund manager sees world of pain coming for stocks
