Wall Street continues to analyze the sectors to invest in as the post-election rally sends equities to record levels. Stock futures remain relatively flat, with the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all ticking down slightly. However, the market upswing that began following last week's presidential election won by Donald Trump has pushed the Dow, S&P 500, and Nasdaq Composite to new all-time highs.

Investors Bullish on Trump's Second Term

Crypto Stocks Surge as Bitcoin Hits New Highs

Crypto stocks have extended their gains from last week, with investors remaining bullish on the future of the industry under a second Trump presidency. Coinbase shares jumped 19% on Monday, trading above $300 for the first time since 2021 and just 6% off their 2021 record. MicroStrategy shares also rose 25%, and miners made significant gains across the board. This surge in crypto stocks was propelled by bitcoin, which continues to hit new highs, rising above $80,000 over the weekend and approaching the $90,000 mark on Monday night.

Small Caps Outperform as Investors Anticipate Deregulation

Small-cap stocks have continued to rally, with the Russell 2000 index jumping 1.5% on Monday. Investors see these companies benefiting from President-elect Trump's preference for deregulation. The Russell 2000 has outperformed the broader S&P 500, which has added around 5% over the past week, with the small-cap index gaining approximately 9.7% in the same timeframe.

Nasdaq Composite Sets Fourth Consecutive Record High

The Nasdaq Composite Index, comprised of 3,473 stocks that trade on the Nasdaq Stock Market, closed at its fourth consecutive record high on Monday. The index has also set four straight intraday highs, with Monday's coming at 19,366.07. The Nasdaq has risen 5.76% over the past week, 16% over the past three months, and more than 29% in 2024, according to FactSet data.

S&P 500 Sees Third-Best Presidential Election Week Since 1928

The S&P 500 just saw its third-best presidential election week since 1928, according to Bespoke Investment Group. The broad index climbed around 4.7% over the course of last week, a timeframe that included the presidential election won by Donald Trump. This gain is the third highest in a presidential election week for the S&P 500 when looking at nearly a century's worth of data, with only two previous weeks seeing stronger returns for the benchmark.

Investors Await Economic Data and Earnings Reports

Investors will be closely watching for economic data on small businesses due on Tuesday, as well as commentary from Federal Reserve officials, including Fed Governor Christopher Waller and Minneapolis Fed President Neel Kashkari. They will also monitor consumer and producer price index readings scheduled for later in the week, which come after the Fed's recent interest rate cut. Traders will also parse earnings releases from Home Depot and Shopify expected on Tuesday.