Stock market today: Nasdaq, S&P 500 hit pause on record-setting rally

Published On Nov 12, 2024, 9:45 AM

US stocks experienced a slowdown on Tuesday as investors questioned if the previous buying spree has gone too far, coinciding with concerns over Donald Trump's cabinet picks and potential policy changes. While the Dow Jones rose slightly, other indices remained flat. Analysts forecast that the recent stock surge might lead to profit-taking as exposure to US equities reaches an 11-year high. Interest rates are increasing, which might also affect stock performance. Meanwhile, Bitcoin's price surged nearing $90,000, but related 'Trump trades' saw some decline, with stocks of companies like Tesla and Coinbase suffering losses after significant previous increases. Upcoming reports on consumer prices and retail sales will be crucial in assessing inflation and the Federal Reserve's future policy decisions.

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Stock Forecasts

SPYView SPY chart on TradingView

Negative

The overall sentiment in the market is cautious with the potential for profit-taking as investors reflect on high equity exposure. Concerns about rising treasury yields and cabinet selections under Trump could limit further equity gains. Additionally, the tech sector appears to have softened after significant gains, which might invite profit-taking.

COINView COIN chart on TradingView

Positive

Given the rising bitcoin prices and the emerging excitement in the cryptocurrency markets driven by optimism regarding Trump's policies, related stocks have the potential to rebound and reflect that bullish sentiment over the near term despite recent declines.

TSLAView TSLA chart on TradingView

Negative

Tesla’s recent gains may not hold if market corrections occur, particularly if profit-taking begins. A cautious forecast is warranted as the premium valuation could be tested amidst changing market dynamics.

HDView HD chart on TradingView

Positive

With calls for increased demand driven by Trump's administration, and Home Depot's recent positive outlook on sales, retail stocks could see some uplift. Home Depot's stock might benefit from the strong demand indicated in their update.

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