US stocks continue to rise, Bitcoin price reaches nearly 90,000 USD

The US stock market set a new record in the trading session on Monday (November 11), as investors continued their excitement after Donald Trump was re-elected as US President.

The Dow Jones Industrial Average rose 304 points, or 0.69%, to close at 44,293.69. The 30-member blue-chip index closed above 44,000 for the first time.

The S&P 500 index rose 0.1% to close at 6,001.35 points. The Nasdaq index rose 0.06% to 19,298.76 points.

Bank stocks led the gains. JPMorgan Chase and Goldman Sachs, up 1% and 2.2%, respectively, were the biggest contributors to the Dow's advance. Bank of America and Citigroup both rose more than 2%.

Bank stocks have been on a strong uptrend since the November 5 election as investors hope that Mr. Trump’s return to the White House will lead to loosening of banking regulations.

Other stocks in the “Trump trade” include GameStop and Tesla, which rose 10% and more than 9% respectively in the session.

The “Trump trade” is a bet that Mr. Trump will win the election and implement policies that are friendly to businesses and the economy, even though those policies may cause large deficits in the federal budget and lead to higher interest rates and inflation in the US in the long run.

Cryptocurrencies are another investment vehicle that benefited from Mr. Trump’s victory, as the market assumed the Republican president-elect would ease regulatory oversight of the sector.

During trading hours in the US market, Bitcoin price at times exceeded 89,600 USD/oz, an unprecedented high.

At 7:00 a.m. this morning, November 12, Vietnam time, Bitcoin price fluctuated below $87,500, up more than 8% compared to 24 hours ago and up nearly 29% in the past week - according to data from Coinmarketcap.com.

Cryptocurrency stocks also surged, with Coinbase and Mara Holdings posting gains of 20% and 30% respectively in the first session of the week.

“The overwhelming Republican victory has sparked a herd mentality despite already high expectations,” Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, said in a note. “Rather than viewing these market moves as a fundamental shift toward a scenario where the economy does not crash and inflation rises, we see the market as being driven by psychological and liquidity factors.”

In the energy market, Brent crude oil futures in London fell $2.04/barrel, or 2.76%, to close at $71.83/barrel. WTI crude oil futures in New York fell $2.34/barrel, or 3.32%, to $68.04/barrel.

Before this decline, prices of both types of oil had fallen more than 2% in Friday's session.

Investors were disappointed after China’s fiscal stimulus package announced last Friday was seen as insufficient to revive growth, while global oil supplies are likely to grow faster than demand.

Many analysts believe that Mr. Trump's return to the position of leader of the United States will benefit the country's oil industry, meaning that US oil production will increase.

“Trump won the election on a promise to encourage oil companies to pump more oil. That took some of the incentive out of the oil bulls,” said Phil Flynn, senior analyst at Price Futures Group.

Oil prices have also been under pressure recently from the rising value of the US dollar. Oil and many other basic commodities are priced in US dollars, so when the greenback rises, those commodities will be under pressure to decrease in price. The US Dollar Index rose above 105.5 points this morning, the highest level since early July.

According to a report by Bank of America Securities, oil production from countries outside the Organization of the Petroleum Exporting Countries (OPEC) will increase by 1.4 million barrels per day in 2025 and increase by 900,000 barrels per day in 2026.

In late September, OPEC+ announced that it would increase oil production by 180,000 barrels per day from December. But earlier this month, the alliance decided to delay that plan until January 2025.