The S&P 500 and Dow Jones Industrial Average (DJIA) both fell, ending a four-day rally following the U.S. presidential election. The DJIA hit a 52-week high before dropping, closing near the day's low at 43,910 points, down 382 points or 0.9%. The S&P 500 decreased by 17 points or 0.3%, closing at 5,983 points, while the Nasdaq fell 17 points or 0.1% to finish at 19,281 points.
Stocks associated with "Trump trade" showed notable declines. Tesla (TSLA) dropped 6.2% following a post-election surge of over 31%. Trump Media (DJT) experienced a nearly 9% decrease. Small-cap stocks, which could potentially benefit from Trump's presidency, were under pressure, with the Russell 2000 Index declining by almost 2%.
In contrast, e-commerce platform operator Shopify (SHOP, Financial) reached a 52-week high, with third-quarter revenue surpassing expectations, resulting in a 21% rise in stock price. Citigroup noted increased risks for the S&P 500 and the Russell 2000, with the S&P 500 at its highest level in three years. The risks associated with the Nasdaq and Russell 2000 could lead to short-term profit-taking and further limit upward movement.
