The Trump rally has continued mid-week on Wednesday and we are into further record territory.
The Dow Jones Industrial Average DJIA, +1.55% meanwhile, set another all-time high of 19,558.42 and finished at 19,549.62, registering its third-straight record close in a row.
The S&P 500 index also made a record high of 2,241.63 and made a closing high of 2,241.35, after opening in negative territory. The Nasdaq Composite rose 60.76 points, or 1.1%, to 5,393.76 and finished just a few points below its all-time high. Meanwhile, the Russell 2000, the small-cap index, advanced 12.62 points, or 0.9%, to 1,365.30.
Interest rates:
US 10yr treasury yields fell from 2.40% to 2.34%, and 2yr yields fell from 1.12% to 1.10%. Fed funds futures continue to imply a 100% chance of a rate hike on 14 December, with two more rate hikes priced in for 2017.
How sustainable is this rally?
This is comes in the wake of a new president elect, Trump, and prospects of reflation in the US economy with markets moving out of bonds and into risk-on asset classes and stocks. However, the rise in the US dollar could be a concern for US multinationals and you have to wonder where Trum will raise all of the funds that he intends for the government to spend during his term. The Fed will indeed have a hard time keeping ahead of the curve sustainably by raising interest rates without rocking the apple cart.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD risks a deeper drop in the short term
AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.
EUR/USD leaves the door open to a decline to 1.0600
A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.
Gold price edges higher on risk-off mood hawkish Fed signals
Gold prices advanced late in the North American session on Thursday, underpinned by heightened geopolitical risks involving Iran and Israel. Federal Reserve officials delivered hawkish messages, triggering a jump in US Treasury yields, which boosted the Greenback.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.