Dow extends rally to fresh record high ahead of inflation, Fed speakers

Investing.com--  The Dow climbed Monday, extending its recent rally to a fresh record high, with the focus turning to upcoming inflation data and a slew of Federal Reserve speakers. 

At 1:06 p.m. ET (1806 GMT), the Dow Jones Industrial Average rose 310 points, or 0.7%, clinching a record high of 44,486.7 earlier in the day. The S&P 500 index was flat, after easing from its intraday record of 6,018.9.  While the NASDAQ Composite 100 Futures}} also gave up gains following its record high to trade 0.2% lower. CPI data, Fed speakers due this week

Focus this week was squarely on upcoming consumer price index inflation data for October, for more signs that inflation is easing. 

The reading comes just a week after the Fed cut interest rates by 25 basis points, and reiterated that future easing will be largely dependent on the path of inflation. This week’s CPI data is expected to factor into the outlook for rates. 

While U.S. inflation did fall earlier in the year, it turned sticky in recent months amid persistent strength in the economy and the labor market. 

Beyond the CPI data, focus this week is also on addresses by a string of Fed officials, who are expected to offer more insight into the central bank’s plans for interest rates.

Futures on the federal funds rate have priced in another 25-basis-point rate cut next month, as well as another 67 bps of reductions for 2025.  "Animal spirits" to drive S&P higher 

There are no economic data of note expected Monday, but the quarterly earnings season is set to continue.

AbbVie (NYSE:ABBV ) stock fell 12% after the drugmaker announced that its two phase 2 trials of a treatment for adults with schizophrenia missed its primary endpoint.

Sapiens International (NASDAQ:SPNS ) stock fell 26% after the insurance software company cut its annual revenue guidance and its Q3 results missed expectations

Evercore ISI expects sharp gains in the coming months, expecting the S&P 500 to hit 6,600 by mid-2025, driven by “animal spirits” ignited by the outcome of the US election.

Trump’s victory in the 47th US election provided the stock market with its largest post-election day gain in more than a century. 

This favorable market reaction is not simply a short-term bounce, Evercore said, but signals the start of a broader "performance chase" that will likely lift the market significantly over the coming months. Banks shine on hopes Trump to ease regulations; Tesla continues to accelerate 

Wall Street banks includhing JPM, GOLD, and Citi were rising amid hopes that a second Trump administration could result in an easier banking regulatory environment. 

Tesla Inc (NASDAQ:TSLA ), meanwhile, added to its 29% gain from last week on bets that a close Elon Musk and Donald Trump during the latter's second presidential term may benefit the EV maker.  Bitcoin tops $84,000 as bulls eye run to $100K

Bitcoin topped $84,00 for the first ever, adding to its post-election gains on optimism that President-elect Donald Trump could follow with a campaign pledge to make the US "crypto capital of the planet. 

Crypto-related names including Marathon Digital Holdings Inc (NASDAQ:MARA ), Riot Platforms (NASDAQ:RIOT ), Coinbase Global Inc (NASDAQ:COIN ) continued to ride Bitcoin's latest run higher.

(Peter Nurse, Ambar Warrick contributed to this article.)

Source: Investing.com