Wall Street started positively as Donald Trump prepared to return to the White House on Monday. The market opened higher in anticipation of President-elect Trump’s upcoming inauguration, which is expected to be marked by a series of executive orders. Analysts at Morgan Stanley indicated that there could be over 100 orders issued, with a keen focus on the implementation of Trump’s proposed tariffs.
Morgan Stanley economists also suggested that the Federal Reserve might consider lowering interest rates at its March meeting following recent inflation data. However, they cautioned that unexpected tariff changes could alter this projection. Meanwhile, Bitcoin surged above $100,000 amid speculation that Trump could prioritize cryptocurrency through an executive order at the start of his term.
By mid-morning, major indices showed gains, with the S&P 500 up 0.79%, the Dow rising by 0.7%, and the Nasdaq climbing 1.1%. The 10-year Treasury yield dipped to 4.595%. If stocks maintain their momentum, they are poised for their first weekly gains of the year, with significant increases expected in the S&P 500, Dow, and Nasdaq.
Market observers highlighted positive economic indicators, such as strong employment numbers and declining core inflation, as Trump prepared to assume office. Industrial production and capacity utilization also surpassed expectations. Technical analysis suggested a bullish outlook for stocks, with sentiment indicators signaling favorable conditions for market performance.
In addition to market trends, investors were monitoring corporate developments. Notably, the Supreme Court upheld a law potentially banning TikTok, Schlumberger’s stock rose after exceeding profit forecasts, and Truist Financial shares saw an increase following positive company announcements.
The fourth-quarter profit of Trump Media increased as the company received higher interest payments. Trump Media’s shares rose by 2.95% to reach $42.21 before the inauguration of President Trump. However, Novo Nordisk’s stock experienced a decline of nearly 3% following the inclusion of its weight-loss drug Wegovy and diabetes medicine Ozempic on Medicare’s list for upcoming price negotiations. Medora Lee is a reporter covering money, markets, and personal finance at USA TODAY. For inquiries, you can contact her at mjlee@usatoday.com and subscribe to the free Daily Money newsletter for personal finance advice and business updates from Monday to Friday mornings. This article was originally published on USA TODAY: US stocks set to achieve their first weekly gain in anticipation of Trump’s return on Monday.
