NEW YORK (AP) 鈥 U.S. stocks rose Monday, led by those seen as benefiting the most from Donald Trump鈥檚 reelection as president, but drops for some high-profile Big Tech stocks kept indexes in check.
The S&P 500 edged up by 0.1%, coming off its following Trump鈥檚 victory and a cut to interest rates by the . The Dow Jones Industrial Average rose 304 points, or 0.7%, while the Nasdaq composite gained 0.1%.
Tesla was the strongest force pushing upward on the S&P 500 after rising 9.1%. Its leader, Elon Musk, has become a close ally of Trump鈥檚, and its stock jumped nearly 15% the day after the election and has kept rising.
Several pieces of what鈥檚 known as the also helped drive the market, as investors try to identify which companies will be . JPMorgan Chase rose 1%, and financial stocks again helped lead the market on expectations for stronger economic growth, less regulation from Washington and an increase in mergers and acquisitions.
A White House more friendly to big tie-ups has helped Wall Street speculate about a merger between insurers Cigna Group and Humana, for example. It鈥檚 been so feverish that Cigna said Monday it isn鈥檛 pursuing a deal with Humana. Cigna鈥檚 stock rose 7.3%, and Humana鈥檚 sank 2%.
Stocks of companies more focused on the U.S. economy were also rising more than the rest of the market, including a 1.5% rally for the smaller stocks in the Russell 2000 index, because they鈥檙e seen as benefiting more from Trump鈥檚 America First policies than big multinational companies.
They helped offset a drop of 1.6% for Nvidia, which was the heaviest weight on the market.
Such Big Tech stocks have rocketed higher on excitement about artificial-intelligence technology, and they had been gaining almost regardless of what the economy was doing. Now, though, critics say their prices look too expensive, and investors are finding more interesting buys among companies that could benefit more from Trump鈥檚 second term.
A drop for Nvidia packs a particularly heavy punch because its massive value of nearly $3.6 trillion makes it one of the most influential stocks on the S&P 500 and other indexes.
AbbVie, meanwhile, tumbled 12.6% after saying trials investigating its treatment for some adults with schizophrenia failed to show statistically significant improvement compared with a placebo group at week six.
Some of the sharpest swings were in the , where bitcoin rose above $87,000 for the first time. generally and pledged to make his country the crypto capital of the world. Bitcoin hit a record of $87,491, according to CoinDesk.
Another Trump trade has been a rise in Treasury yields, as traders anticipate potentially higher economic growth, U.S. government debt and . But trading in the bond market was closed Monday in observance of Veterans Day.
Treasury yields been generally climbing since September, in large part because the U.S. economy has remained much more resilient than feared. The hope is that as the Federal Reserve continues to cut interest rates in order to keep the job market humming, now that it鈥檚 helped get .
But Trump鈥檚 win has scrambled expectations for coming cuts to rates. Traders have already begun paring forecasts for how many the Fed will deliver next year. While lower rates can boost the economy, they can also give inflation more fuel.
Still, many professional investors warn not to get carried away by all the big swings following Trump鈥檚 victory. It takes time to see what campaign promises turn into actual policy, and that can lead to snaps back for the market鈥檚 initial knee-jerk reactions.
The U.S. stock market is also broadly looking more expensive, as prices continue to run up faster than corporate profits.
鈥淰aluations are increasingly elevated, and the pace of growth isn鈥檛 sustainable,鈥 according to Mark Hackett, chief of investment research at Nationwide. 鈥淲hile near-term seasonality will be a strong tailwind for markets, valuations may prove to be a tipping point as we move into 2025.鈥
All told, the S&P 500 rose 5.81 points Monday to 6,001.35. The Dow gained 304.14 to 44,293.13, and the Nasdaq composite added 11.99 to 19,298.76.
Stock markets abroad have swung following Trump鈥檚 election amid worries about increased tariffs and disruptions to global trade. They were mixed Monday, with European indexes rising while South Korea鈥檚 and Hong Kong鈥檚 sank.
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AP Writer Zimo Zhong in Hong Kong contributed to this report.
