Market Wrap | Stocks Rise on Economic Optimism as Nvidia Hits Historic $3.6 Trillion Milestone

On November 8, U.S. stocks ended the day in positive territory across the three major indexes. The S&P 500 climbed 0.38% to 5995.54 points, the Dow Jones Industrial Average rose 0.59% to 43988.99, while the Nasdaq Composite edged up 0.09% to close at 19286.78, showcasing resilience amid growing economic optimism.

In an explosive day of trading, Innodata surged 75.76%, Sezzle soared 72.27%, and Destiny Tech100 experienced a remarkable increase of 64.75%. Conversely, Evolent Health plummeted 45.67%, followed by Xiangsong International falling 36.16%, and Revance Therapeutics descending 35.99%, marking significant moves in both gainers and decliners.

The U.S. stock market echoed new all-time highs as anticipations built around President Trump's election victory and the Federal Reserve's probable 25 basis point rate cut. This optimism led the Nasdaq to surpass the 19,000 mark and the S&P 500 to near the 6,000 threshold, underlining the benchmark's 49th record high this year. Nvidia broke ground with a historic market cap of over $3.6 trillion, establishing itself as the most valuable company globally.

Looking ahead, Nvidia's upcoming earnings report, slated for November 20, is highly anticipated. Analysts project a more than 80% revenue increase year-over-year, expecting the company to report $32.9 billion for the quarter, further boosting investor confidence in this tech giant at the forefront of the AI revolution.

As President Trump's tenure begins, questions linger regarding the lifelong trajectory of the bull market. Evercore ISI analysts suggest an accelerated upward momentum, foreseeing the S&P 500 reaching 6600 points by June next year, driven by regulatory relaxation and corporate tax cuts stimulating market activities.

Nevertheless, the profitability of U.S. stocks in a Trump administration raises divergent perspectives. While stockholders welcome potential regulatory relief and lower taxes, apprehensions regarding inflationary pressures from proposed tariffs and immigration curtailments remain afloat, cautioning against potential risks that could affect the equilibrium the markets currently enjoy.

Meanwhile, pivotal political developments factor into market dynamics. With the Republican Party poised to consolidate power across both congressional chambers, market sentiment indicates reinforced optimism for year-end performances. However, market analysis insists that a sustained bull market will require clear catalysts moving into 2025.