The S&amp;P 500 index surged past the 6,000-point milestone, setting fresh record highs, and small-cap stocks are poised for their best weekly performance since April 2024 as investor optimism surrounding the &#8220;Trump trade&#8221; continued to fuel a strong risk-on sentiment by the end of a <a href="https://www.benzinga.com/markets">wild week in the market</a>. 



All major U.S. indices posted modest gains in midday trading, with the Dow Jones Industrial Average leading slightly, soaring beyond the 44,000-point mark. The blue-chip index is set for its best weekly performance in over a year.



Friday's rise in the S&amp;P 500 was powered by the utilities and real estate sectors, which had lagged post-election. Tech stocks took a breather following Thursday's rally.



Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) surged 7%, pushing its weekly gains beyond 27% and propelling its market cap past $1 trillion. 



This move now places every "Magnificent Seven" tech stock in the trillion-dollar club, with the group's combined market cap topping $17 trillion.



Treasury yields held steady, while the dollar strengthened in response to the Federal Reserve's Thursday 25-basis-point rate <a href="https://www.benzinga.com/economics/macro-economic-events/24/11/41823887/powell-dismisses-talk-of-resignation-after-trump-victory-says-policy-is-still-res">cut to 4.5%-4.75%</a>.



Gold softened, eyeing its worst week since late May, as both silver and oil dropped over 2% on the day. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) edged up 0.8%, extending its weekly gains to over 11%, marking its best week since July.



<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices, ETFs</h3>



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day %chg</td></tr><tr><td>Dow Jones</td><td>43,993.21</td><td>0.6%</td></tr><tr><td>S&amp;P 500</td><td>5,998.81</td><td>0.4%</td></tr><tr><td>Russell 2000</td><td>2,389.50</td><td>0.3%</td></tr><tr><td>Nasdaq 100</td><td>21,124.53</td><td>0.1%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 1:05 p.m. ET</figcaption></figure>



According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent110824&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.4% to $598.17.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 0.6% to $439.89.</li>



<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) inched 0.1% higher to $514.10.</li>



<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 0.3% to $237.08.</li>



<li>The Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) outperformed, rising 1.8%. The Materials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>) lagged, down 1%.</li>
</ul>



<h3 class="wp-block-heading">Friday&#8217;s Stock Movers</h3>



Stocks reacting to earnings reports were: 



<ul>
<li>NRG Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>), up 0.5%, </li>



<li>Ubiquiti Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UI#NYSE">UI</a>), up 21%</li>



<li>Arista Networks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NASDAQ">ANET</a>), down 7%, </li>



<li>Airbnb Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ABNB#NASDAQ">ABNB</a>), down 7.5%, </li>



<li>Motorola Solutions Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSI#NYSE">MSI</a>), up 6.7%, </li>



<li>EOG Resources Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EOG#NYSE">EOG</a>), up 5.9%, </li>



<li>Fortinet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTNT#NASDAQ">FTNT</a>), up over 9%, </li>



<li>The Trade Desk Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTD#NASDAQ">TTD</a>), down over 4%, </li>



<li>Monster Beverage Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>), up by 0.5%, </li>



<li>Axon Enterprise Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AXON#NASDAQ">AXON</a>), up 25%, </li>



<li>Block Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SQ#NYSE">SQ</a>), down 4.4%, </li>



<li>Cloudfare Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NET#NYSE">NET</a>), down 6.2%, </li>



<li>Corpay Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPAY#NYSE">CPAY</a>), up 6%, </li>



<li>Expedia Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EXPE#NYSE">EXPE</a>), up over 6%, </li>



<li>Toast Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TOST#NYSE">TOST</a>), up 13%, </li>



<li>Pinterest Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PINS#NYSE">PINS</a>), down 17%, </li>



<li>DraftKings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DKNG#NASDAQ">DKNG</a>), up 1.7%, </li>



<li>Insulet Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PODD#NASDAQ">PODD</a>), up 12%, </li>



<li>News Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NWS#NASDAQ">NWS</a>), up 3.6%, </li>
</ul>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/11/41848568/us-consumer-sentiment-rises-more-than-predicted-to-6-month-highs-inflation-expectations-hit-4-year-low">US Consumer Sentiment Rises More Than Predicted To 6-Month Highs, Inflation Expectations Hit 4-Year Low</a></li>
</ul>



Illustration created using artificial intelligence via Midjourney.

Equities

Sector ETFs

Markets

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$BTC

ABNB

ANET

AXON

CPAY

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FTNT

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PINS

PODD

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S&P 500 Breaks 6,000 Points, Dow Soars Above 44,000, Small Caps Eye Strongest Week In 4 Years, Tesla Hits $1 Trillion: What's Driving Markets Friday?

The re-election of Donald Trump has reignited one of the most contentious debates among investors: Can the president-elect remove Federal <a href="https://www.benzinga.com/topic/jerome-powell">Reserve Chair Jerome Powell? </a>



Trump has been critical of Powell's handling of interest rates since appointing him in 2018, and many have speculated that a Trump-led White House may clash with the central bank yet again.



But Powell didn't mince words during his press conference following the Fed&#8217;s November interest-rate cut, stating firmly that a U.S. president &#8220;is not permitted under the law&#8221; to remove the central bank governor. Powell also added that he would refuse to step down <a href="https://www.benzinga.com/economics/macro-economic-events/24/11/41823887/powell-dismisses-talk-of-resignation-after-trump-victory-says-policy-is-still-res">if Trump requested him to do so</a>.



<h3 class="wp-block-heading">Legal safeguards protect the Fed chair (mostly)</h3>



While the Federal Reserve Act technically shields the Fed&#8217;s chair from presidential removal, there are also some caveats.



Under Section 10 of the Act, a Fed chair can only be dismissed by the president in cases of legal or ethical violations—not simply due to policy disagreements. This structure is designed to keep monetary policy free from short-term political interference.



However, Trump could choose not to reappoint Powell once his term expires in 2026, potentially replacing him with someone more aligned with his low-rate preferences. 



As Bill Adams, chief economist at Comerica Bank, commented, "After Fed Chair Powell's term expires in 2026, President-elect Trump will have an opening to appoint a new Fed chair who is more sympathetic to his calls for lower interest rates."



Adams indicates that Trump will likely push the Fed to cut interest rates more aggressively, as he did in his first term. 



However, he highlights that this pressure is unlikely to impact the Fed's rate path over the next year, given the central bank&#8217;s structure, which is designed to shield rate decisions from White House influence.



Powell used his press conference not only to clarify the Fed's rate strategy, but to also reassert its independence.



BNP Paribas economist Anis Bensaidani said, &#8220;For Chair Powell, the post-meeting press conference was an opportunity for a twofold statement of the Fed's independence.&#8221;



Bensaidani noted that Powell's refusal to resign at Trump's potential request underscored the Fed's autonomy from the executive branch, a message he amplified by referencing legal safeguards against unwarranted dismissal.



Yet, Powell also sidestepped questions on how the Fed would respond to the new administration's potential policy shifts, stating that the Fed would "only model any policy changes after they have been passed" and decide on a response later. 



This careful approach seems aimed at avoiding the perception that the Fed is preemptively aligning with any political agenda.



<h3 class="wp-block-heading">Powell&#8217;s Dovish Tone Raises Eyebrows</h3>



However, Powell&#8217;s recent remarks struck a dovish tone, leaving economists divided on the Fed's rate trajectory.



&#8220;Although he stressed data dependence as expected, he gave several indications that a December cut remains his base case,&#8221; Bank of America economist Aditya Bhave said in a note Friday.



This dovish outlook has some analysts predicting further rate reductions over the coming months, even as the economy and labor market show resilience.



Goldman Sachs economist David Mericle foresees "consecutive cuts in December, January, and March," with additional reductions in June and September to reach a terminal federal funds rate of 3.25% to 3.5%. 



According to Mericle, "Powell said twice that the labor market is continuing to cool, and the FOMC does not want further cooling."



Some economists question whether more easing is justified.



Veteran Wall Street analyst Ed Yardeni, stated that 75-basis-point of rate cuts since Sept.18 &#8220;is too much, too soon because both the economy and the labor market remain strong.&#8221;



Yardeni added that Powell himself acknowledged the economy&#8217;s strength, commenting that "both remain solid." Yet, Powell insists the Fed's policy remains restrictive, as rates are still above the so-called "neutral" level. 



Yardeni also questioned the urgency of the cut: "One might question why an additional rate cut was needed if the economy is in fact in better shape today than it was at the Fed&#8217;s last meeting."



Powell also attributed recent jumps in Treasury yields—up 75 basis points since the last rate cut—to robust economic growth and lower recession risks. 



&#8220;He minimized the impact of higher inflation expectations. But the market&#8217;s inflation expectations, based on the difference between nominal Treasury yields and TIPS yields, have risen,&#8221; Yardeni stated. 



The 5-year breakeven inflation rate—a closely watched market indicator reflecting investor expectations for average annual inflation over the next five years—has climbed from 1.98% on Sept. 8 to 2.4% on Nov. 8.



This surge suggests that investors increasingly doubt the Federal Reserve's ability to keep inflation at its 2% target over the coming five years.



Read Next:



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<li><a href="https://www.benzinga.com/news/large-cap/24/11/41826586/wall-street-closes-at-record-highs-after-reassurance-from-powell-magnificent-7-hit-17-trillion-tre">Wall Street Hits Record Highs After Powell&#8217;s Speech, Lifts Magnificent 7 Stocks To $17 Trillion In Historic Trading</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

Analyst Color

Econ #s

Federal Reserve

Powell Brushes Off Trump's Removal Threat: Economists Say 2026 Could Be His Last Stand

Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) faces possible delisting after its auditor Ernst &amp; Young resigned amid allegations of accounting irregularities and claims of potential export control violations. Adding to Super Micro's woes, the company could face an early repayment on up to $1.725 billion of <a href="https://www.benzinga.com/news/24/02/37287458/whats-going-on-with-super-micro-computer-stock">its bonds if delisted.&nbsp;</a>



The Details: According to the bonds<a href="https://ir.supermicro.com/news/news-details/2024/Supermicro-Announces-Pricing-of-Private-Offering-of-1.5-Billion-of-Convertible-Senior-Notes-Due-2029/default.aspx"> documentation</a>, holders of Super Micro's $1.725 billion convertible notes due March 2029 have the option of getting their money back early if the shares are delisted from Nasdaq and are not immediately re-listed, re-traded or re-quoted. 



Super Micro faces a potential delisting from the Nasdaq if it does not submit its annual report to the SEC by mid-November.&nbsp;



Read Next: <a href="https://www.benzinga.com/news/24/11/41781921/what-does-trumps-victory-mean-for-ev-giant-tesla-and-the-big-3-automakers">What Does Trump&#8217;s Victory Mean For EV Giant Tesla And The Big 3 Automakers?</a>



However, the company said on its first-quarter earnings call Tuesday that it is working on a compliance plan, which could extend the deadline to submit audited financials to February 2025.&nbsp;



"We&#8217;re diligently looking to replace the auditor as quickly as possible. And we will be filing a plan with Nasdaq and indeed regarding an extension&#8230; but that&#8217;s all we have to say about that," said David Weigand, Super Micro's CFO. 



An analyst also asked what happens with the company's bank debt and convertible debt if audited financials are not submitted within the prescribed time.&nbsp;



"We have long-term and good relationships with the banks. And so as necessary, we will file extensions, yes, or get waivers. As I mentioned earlier, we&#8217;re not concerned about the company&#8217;s ability to access the capital markets," Weigand said. 



According to Super Micro's<a href="https://www.benzinga.com/news/earnings/24/11/41759924/super-micro-computer-stock-sinks-on-preliminary-q1-results-q2-guidance-business-update"> first-quarter report</a>, the company had about $2.1 billion in cash or equivalents at the end of September. Wedbush analyst Matt Bryson said the company's large cash reserve gives it <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41780680/super-micro-analysts-need-more-clarity-on-auditor-resignation-await-10-k-filing-man">more options</a> if it needs to restructure its debt.&nbsp;



Super Micro's delisting and resulting payment on its large sum of debt remains "certainly a risk," Bryson said in an interview, according to Bloomberg.&nbsp;



SMCI Price Action: According to data from Benzinga Pro, Super Micro Computer shares are down 3.5% at $24.57 at the time of publication Friday. 



Read More:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/general/biotech/24/11/41822473/trumps-potential-health-czar-robert-f-kennedy-jr-rattles-vaccine-stocks-shoot-first-reaction">Trump&#8217;s Potential &#8216;Health Czar&#8217; Robert F. Kennedy Jr. Rattles Vaccine Stocks: &#8216;Shoot First Reaction&#8217;</a></li>
</ul>



Photo: Shutterstock

News

Topics

SMCI

Super Micro Delisting Risk Puts $1.7 Billion Bond Repayment On The Line

Rivian Automotive (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) analysts are cautious on the short-term outlook for the electric vehicle company with supply chain concerns, after the company missed third-quarter revenue and <a href="https://www.benzinga.com/news/earnings/24/11/41825787/rivian-q3-earnings-highlights-revenue-eps-miss-ceo-confident-in-q4-gross-profit-r2-being-fundamenta">earnings per share estimates.</a>



The Rivian Analysts: 



<ul>
<li>Truist analyst Jordan Levy maintained a Hold rating on Rivian with a $12 price target.</li>



<li>Wedbush analyst Daniel Ives maintained an Outperform rating with a $20 price target.</li>



<li>Needham analyst Chris Pierce reiterated a Buy rating and lowered the price target from $18 to $14.</li>



<li>Piper Sandler analyst Alexander Potter maintained an Overweight rating and lowered the price target from $21 to $19.</li>
</ul>



Read Also: <a href="https://www.benzinga.com/markets/equities/24/11/41832998/rivian-draftkings-block-pinterest-and-tesla-why-these-5-stocks-are-on-investors-radars-today">Rivian, Draftkings, Block, Pinterest, And Tesla: Why These 5 Stocks Are On Investors&#8217; Radars Today</a>



Truist on RIVN: Proof of profitability for Rivian's R1 vehicle may be necessary to instill confidence in the R2 launch, Levy said in a new investor note.



"RIVN's third quarter results were mired by the company's previously reported component shortage, though a significant expected 4Q uptick in regulatory credit sales + realization of cost-down from Gen 2 models enabled the company to reiterate its 4Q positive GM (gross margin) target," Levy said.



The analyst said Rivian needs to demonstrate consistent profitability to help investors gain confidence.



Rivian's tailwind of resolving supply chain issues was not a surprise to investors, Levy added.



"While we are incrementally positive on the timeline reiteration for R2, we see the recent election results and the incoming administration being an overhang over the entire domestic EV market for the time being given the uncertainty."



Wedbush on RIVN: The electric vehicle company made progress and saw strong demand in the third quarter, but Ives said in a new investor note that there is more work ahead.



Ives said Rivian took two steps forward but one step back as the supply chain challenges hurt the company's plan to ramp up production.



"Rivian did not anticipate such large supply ramp challenges this quarter, however, it should be well sorted over the next few quarters as the company is still on track in terms of timing the R2 production launch," Ives said.



A supply partnership announced with LG on Thursday and the pending launch of the Volkswagen (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>) joint venture are "critical pieces" for the future of Rivian, Ives added.



"Although we still remain confident in the long-term Rivian vision, it will take some serious strides for the company to regain trust in the short-term vision in the eyes of the Street."



Needham on RIVN: Scale and margins are bearish talking points for the Rivian story, Pierce said in a new investor note.



"We continue to view RIVN as a long-term winner in the eventual ICE to EV transition, leaning on its ability to create a brand and produce vehicles that drive high levels of customer passion and satisfaction," Pierce said.



The analyst said R2 production enhancements are the key focus for 2025 with R2 production set to begin in the first half of 2026. Vehicle profitability for the R2 is expected to be reached faster than the R1 and will be a key factor to watch, the analyst added.



The analyst also highlighted a joint venture with Volkswagen expected to close in the fourth quarter.



"RIVN's balance sheet has been significantly strengthened the Volkswagen announcement, removing any additional equity needs vs our prior model, allowing for a higher level of investor patience."



Piper Sandler on RIVN: The third-quarter results and commentary had no surprises, leading to increasing importance for the joint venture with Volkswagen closing as the next catalyst, Potter said in a new investor note.



"The stock has faltered recently, partially due to slower production, and partially (in our view) because a JV with Volkswagen has yet to be finalized," Potter said.



The analyst said the joint venture terms could continue to be a story in the coming weeks and could see Rivian's valuation expand.



"We will review our model once the JV terms are announced."



RIVN Price Action: Rivian stock is down 0.48% to $10.00 on Friday, versus a 52-week trading range of $8.26 to $24.62. Rivian stock is down 51% year-to-date in 2024.



Read Next: 



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<li><a href="https://www.benzinga.com/news/24/11/41784487/rivian-lucid-stocks-sink-after-trump-win-whats-driving-bearish-move">Rivian, Lucid Stocks Sink After Trump Win: What&#8217;s Driving Bearish Move?</a></li>
</ul>



Photo: Shutterstock

Price Target

Reiteration

Analyst Ratings

Trading Ideas

RIVN

VWAGY

Rivian Stock 'Long-Term Winner' In Gas-To-Electric Transition: Analyst

Editor&#8217;s note: This story has been updated with additional comments tweeted by Bill Ackman. 



Billionaires are lining up to serve in President-elect Donald Trump&#8216;s <a href="https://www.benzinga.com/news/24/11/41768178/donald-trump-defeats-kamala-harris-to-win-2024-election">incoming administration</a>, especially those eager to <a href="https://www.benzinga.com/news/24/08/40146910/does-donald-trumps-proposed-tax-cut-threaten-social-security-and-medicare-heres-what-think-tanks-war">cut federal assistance programs</a>.



Bill Ackman is one of them. 



On Friday morning, when a user on X asked whether the Pershing Square Capital founder would &#8220;consider joining Elon [Musk] in the Department of Government Efficiency,&#8221; Ackman <a href="https://x.com/BillAckman/status/1854891084381377017">replied</a> with a single word: &#8220;Yes.&#8221;



Musk has proposed the idea of creating a &#8220;Department of Government Efficiency.&#8221; This hypothetical agency would slash federal spending by the trillions. Should such a plan come to fruition, analysts suggest programs like health care, food security and housing <a href="https://www.benzinga.com/startups/24/11/41750727/kevin-oleary-supports-elon-musks-2-trillion-plan-to-slash-government-spending-with-trumps-backing-it">would be gutted</a>. 



Trump was receptive to this idea. 



See Also: <a href="https://www.benzinga.com/news/24/07/39657200/ex-trump-staffer-shares-texts-to-prove-that-ex-presidents-campaign-settled-to-keep-discrimination-an">Ex-Trump Staffer Shares Texts To Prove That Ex-President&#8217;s Campaign Settled To Keep Sexual Harassment Lawsuits Quiet</a>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Yes&mdash; Bill Ackman (@BillAckman) <a href="https://twitter.com/BillAckman/status/1854891084381377017?ref_src=twsrc%5Etfw">November 8, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Ackman is among Trump&#8217;s most ardent Wall Steet supporters. The billionaire told CNBC that he&#8217;s unfazed by the <a href="https://www.benzinga.com/government/24/11/41828468/trump-says-hed-replace-income-taxes-with-tariffs-the-potential-economic-fallout">potential market implications</a> of a second Trump administration.



In a follow-up tweet, Ackman said he is not leaving his day job for one with the Trump administration.



&#8220;Like Elon Musk who has a half a dozen full-time jobs, I would be delighted to help anyway that I can to help DOGE succeed,&#8221; Ackman tweeted. 



Musk contributed nine-digit sums to Trump&#8217;s campaign and organized much of Trump&#8217;s ground game.



The Tesla Inc. CEO has also openly said Americans will experience &#8220;temporary hardship&#8221; once federal cuts are made.



According to the U.S. Treasury, the country&#8217;s federal budget was $6.75 trillion in 2024. Musk&#8217;s proposal to make large cuts to the federal budget would necessitate shedding several categories. Analysts put social security, military spending, Medicare, and veterans benefits on that list.



It remains to be seen how high of a legislative priority this will be for Trump.



Also Read:



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<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/11/41843182/fed-cuts-rates-but-inflation-remains-elephant-in-the-room">Fed Cuts Interest Rates, But Inflation Remains Elephant In The Room</a></li>
</ul>



Image: Shutterstock

Government

Health Care

Politics

Bill Ackman Says He'd Consider Joining Elon Musk's 'Department Of Government Efficiency' Under Trump (UPDATED)

The Fed's widely anticipated 25 basis point rate cut on Thursday left investors with a sense of relief – but not certainty. According to JPMorgan analyst Maia G Crook. <a href="https://www.benzinga.com/federal-reserve">While Federal Reserve</a> Chair Jerome Powell acknowledged the U.S. economy's resilience, inflation remains a nagging issue.



In the post-meeting press conference, Powell highlighted key growth drivers, including robust consumer spending and a solid labor market.



However, he attributed persistent inflation, or the &#8220;elephant in the conference room,&#8221; largely to lagging pressures, such as shelter and insurance costs, underscoring that the fight against rising prices is far from over.



She notes that while Powell signaled some progress, he avoided providing a clear path forward, emphasizing the Fed's "data-dependent" approach.



Read Also: <a href="https://www.benzinga.com/news/large-cap/24/11/41826586/wall-street-closes-at-record-highs-after-reassurance-from-powell-magnificent-7-hit-17-trillion-tre">Wall Street Hits Record Highs After Powell&#8217;s Speech, Lifts Magnificent 7 Stocks To $17 Trillion In Historic Trading</a>



<h2 class="wp-block-heading">What's Next For December?</h2>



Crook expects another 25 basis point cut in December, followed by quarterly cuts in 2025, but warns the Fed might hold off if the inflation rate doesn't continue to ease. With Powell leaving options open, she suggests the Fed's caution reflects a genuine concern over stubborn inflation that could delay the easing path investors hope for.



ETFs such as the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) provide exposure to broad market U.S. equities.



<h2 class="wp-block-heading">Politics In The Background</h2>



When asked about the impact of the recent election, Powell stressed that policy decisions will remain apolitical, emphasizing that he would not step down if asked and can't legally be removed from his position. Crook notes that Powell's clarification here reaffirms the Fed's independence, reassuring markets wary of potential political pressures.



She sees the Fed as ready for a December cut, but with inflation still looming large, investors should remain cautious. As Powell sidesteps firm guidance, the Fed's data-driven approach means a slower path is on the table if inflation remains stubborn.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/11/41823887/powell-dismisses-talk-of-resignation-after-trump-victory-says-policy-is-still-res">Powell Dismisses Talk Of Resignation After Trump Victory, Says &#8216;Policy Is Still Restrictive&#8217;</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

Macro Economic Events

Economics

Fed Cuts Interest Rates, But Inflation Remains Elephant In The Room

Bitcoin spot ETFs on Nov. 7 saw a historic surge in investment, with total net inflows reaching $1.38 billion, the <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41803451/bitcoin-spot-etfs-hit-622m-inflows-following-trump-victory">highest single-day figure to date</a>.



What Happened: BlackRock's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBIT#NASDAQ">IBIT</a>) ETF alone accounted for $1.12 billion of this total, marking a record-breaking day for digital asset ETFs, according to <a href="https://sosovalue.com/assets/etf/us-btc-spot">data</a> from SoSo Value.



<a href="https://www.benzinga.com/money/what-is-ethereum-etf">Ethereum spot ETFs</a> also saw significant activity, with net inflows of $79.7 million, representing the third-highest single-day inflow for Ethereum.



The surge in Bitcoin ETF inflows comes at a time when post-election optimism and market recalibrations are influencing investor behavior. 



According to QCP Capital, recent market movements indicate that Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is benefiting from increased attention, driven partly by what they describe as &#8220;Trump trades.&#8221; 



These are investments spurred by positive sentiment around Trump's economic policies and <a href="https://www.benzinga.com/economics/macro-economic-events/24/11/41820253/fed-cuts-interest-rates-to-lowest-since-february-2023-sticks-to-data-driven-path">a 25 basis-point cut</a> from the Federal Reserve, which have helped drive Bitcoin prices to $77,000.



&#8220;However, investors are beginning to pull back on some &#8216;<a href="https://www.benzinga.com/government/24/11/41831044/how-to-play-the-trump-trade-for-ai-energy-taxes-analyst-says-5-stocks-could-shine">Trump trades</a>&#8216;: the dollar has reversed much of its post-election gains, and Treasury yields have settled back into recent ranges,&#8221; QCP Capital noted.



The firm points out that fiscal concerns, such as the national debt and Trump's proposed 60% tariff on China, are prompting investors to reassess their portfolios.



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/events/digital-assets/ "><img loading="lazy" decoding="async" width="300" height="250" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/29155259/905735A6-57D3-4874-9AA1-75D037842DB3-2.gif" alt="Benzinga Future of Digital Assets conference" class="wp-image-270548"/></a></figure>



Also Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41841793/bitcoin-ethereum-solana-rally-does-not-mean-all-cryptocurrencies-will-moon-10x-research">Bitcoin, Ethereum, Solana Rally Does Not Mean All Cryptocurrencies Will Moon: 10x Research</a>



These factors, they suggest, could make Bitcoin's risk profile more appealing than traditional equities and potentially position it to outperform other risk-on assets.



In a note sent to Benzinga, Fadi Aboualfa, Head of Research at Copper.co, also provided insights on the significance of these ETF inflows for Bitcoin's future. 



&#8220;We have back-tested the ETF accumulation trend against potential price ranges, suggesting a $100,000 Bitcoin is quite possible by the time the 47th U.S. President heads to the Capitol for inauguration on Jan. 20,&#8221; Aboualfa stated. 



His analysis projects that ETFs could hold approximately 1.1 million Bitcoin by January, further reinforcing Bitcoin's appeal as an investment. 



Reflecting on Trump's previous administration, Aboualfa noted, &#8220;For Bitcoin, it's worth remembering that Trump oversaw not one but two all-time high cycles during his 2016–2020 presidency.&#8221; 



However, he highlighted a difference in today's market context, stating that past gains occurred against a weakening dollar backdrop, as opposed to the current stronger dollar environment.



What&#8217;s Next: These trends will be a focal point at Benzinga's <a href="https://www.benzinga.com/events/digital-assets/agenda/">Future of Digital Assets</a> event on Nov. 19, where experts and industry leaders will explore Bitcoin's evolving role in the financial landscape amid changing economic and regulatory environments.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41823388/the-trump-effect-a-deep-dive-into-how-the-crypto-landscape-will-change-in-2025-and-beyond">The Trump Effect: A Deep Dive Into How The Crypto Landscape Will Change In 2025 And Beyond</a></li>
</ul>



Image: Shutterstock

Cryptocurrency

$ETH

IBIT

Bitcoin ETFs Saw Record $1.38 Billion Inflows On Thursday

In the wake of successful predictions for the presidential election, cryptocurrency-based betting platform Polymarket disclosed its intentions to reestablish its prediction markets for U.S. users.



What Happened: While talking about the company&#8217;s growth strategy in a CNBC interview on Thursday, CEO Shayne Coplan said that having a presence in the U.S. market was &#8220;part of the plan&#8221; and that they were in a position to be &#8220;aggressive around expansion.&#8221;



&#8220;I want to give a lot of credit to the people who fought the battle to go in and legalize political prediction markets in America,&#8221; Coplan stated.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Squawk Pod: Polymarket CEO Shayne Coplan: polls vs. prediction markets - 11/07/24 &#x7C; Audio Only" width="500" height="281" src="https://www.youtube.com/embed/cnzI_aMm_9c?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



Polymarket has <a href="https://www.benzinga.com/markets/cryptocurrency/24/10/41443187/amid-kamala-harris-trump-polymarket-hype-cftc-chair-wary-of-turning-into-an-election-cop-w">remained offshore </a>since the CFTC penalized it $1.4 million and issued a cease-and-desist order for regulatory&nbsp;violations&nbsp;in January 2022. As such, U.S. residents can't use the platform.



Kalshi, a rival firm, <a href="https://www.benzinga.com/markets/cryptocurrency/24/10/41158370/wanna-put-your-money-on-trump-or-harris-crypto-based-polymarket-gets-competition-after-kal" target="_blank" rel="noreferrer noopener">resumed taking bets</a>&nbsp;on the outcome of congressional elections after an appeals court lifted a ban on the platform&#8217;s operations by the CFTC last month.



Since then, other players have thrown their hats in the ring, with Robinhood <a href="https://www.benzinga.com/news/24/10/41573989/harris-vs-trump-robinhood-launches-election-event-contracts-for-traders-as-2024-presidential-race-he">launching its presidential election event contracts</a>&nbsp;just ahead of the Nov. 5 elections.



See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41818982/will-microstrategys-42-billion-bitcoin-bet-boost-mstr-stock-further">Will MicroStrategy&#8217;s $42 Billion Bitcoin Bet Boost MSTR Stock Further?</a>



Why It Matters: Polymarket&#8217;s re-entry into the US market comes on the heels of its successful prediction of election outcomes, which, according to Coplan, offered a <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41819799/polymarket-ceo-on-election-night-it-looked-like-a-done-deal-on-platform-but-just-watching-">more accurate view than traditional media</a>. 



About $3.6 billion was&nbsp;<a href="https://polymarket.com/event/presidential-election-winner-2024" target="_blank" rel="noreferrer noopener">wagered&nbsp;</a>on the outcome of the presidential race on Polymarket, making it the biggest election prediction market. A fraction of it—about $440 million—was&nbsp;<a href="https://kalshi.com/live/trump-v-harris" target="_blank" rel="noreferrer noopener">invested&nbsp;</a>in Kalshi for the presidential contract.



One notable bettor, a French ‘Trump Whale' known as Theo,&nbsp;<a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41772749/donald-trumps-re-election-nets-french-trump-whale-almost-50-million" target="_blank" rel="noreferrer noopener">netted almost $50 million</a>&nbsp;on Polymarket following Trump's victory.



There were widespread concerns over his significantly larger bets in favor of Trump leading to the election, with many pointing to <a href="https://www.benzinga.com/markets/cryptocurrency/24/10/41434026/mark-cuban-dismisses-polymarket-election-odds-as-meaningless-most-of-the-money-is-foreign">foreign influence and market manipulation</a>. 



However, Theo said that his bets were essentially a challenge to conventional polling methods, and he employed what is known as &#8220;the neighbor method&#8221; to get his predictions right.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41821244/blockfis-lending-license-revoked-by-california-regulator-over-violations">BlockFi&#8217;s Lending License Revoked By California Regulator Over Violations</a></li>
</ul>



Image via Shutterstock

Polymarket CEO Hints At US Comeback After Betting Market's Accurate Trump Victory Prediction: 'It's Part Of The Plan'

On Thursday, November 8th, U.S. markets ended mixed after the Federal Reserve cut interest rates by 25 basis points, citing an eased job market and progress toward the 2% inflation target. Optimism over President-elect Donald Trump&#8217;s return lifted the S&amp;P 500 and Nasdaq to record highs, with global markets rallying in response.



Financials led declines among S&amp;P sectors, reversing strong gains from the previous session as bank stocks fell sharply.



The Federal Reserve cut rates by 0.25 points to a 4.5%-4.75% range, slowing the pace of easing from September&#8217;s 0.5% cut.



In economic data, U.S. initial jobless claims rose to 221,000 in late October, while Q3 nonfarm productivity increased by 2.2% and unit labor costs grew by 1.9%. Wholesale inventories fell 0.2% in September, and natural gas stocks climbed by 69 billion cubic feet to 3.932 trillion.



The Dow Jones Industrial Average was flat and closed at 43,729.34, the S&amp;P 500 rose 0.74% to 5,973.10, and the Nasdaq Composite soared 1.51% to finish at 19,269.46.



Asia Markets Today



<ul>
<li>On Friday, Japan&#8217;s Nikkei 225 gained 0.19% and ended the session at 39,468.50, led by gains in the Textile, Shipbuilding and Steel sectors.</li>



<li>Australia&#8217;s S&amp;P/ASX 200 rose 0.84% and ended the day at 8,295.10, led by gains in the Gold, IT, and Consumer Discretionary sectors.     </li>



<li>India&#8217;s Nifty 50 traded lower by 0.21% at 24,148.20, and Nifty 500 was down 0.70% at 22,645.65.</li>



<li>China&#8217;s Shanghai Composite slid 0.53% to close at 3,452.30, and the Shenzhen CSI 300 declined 1.00%, finishing the day at 4,104.05.</li>



<li>Hong Kong&#8217;s Hang Seng fell 1.7% and closed the session at 20,728.19.</li>
</ul>



Eurozone at 05:30 AM ET



<ul>
<li>The European STOXX 50 index was down 1.09%.</li>



<li>Germany&#8217;s DAX declined 0.99%.</li>



<li>France&#8217;s CAC fell 1.13%.</li>



<li>U.K.&#8217;s FTSE 100 index traded lower by 0.72%.</li>
</ul>



Commodities at 05:30 AM ET



<ul>
<li>Crude Oil WTI was trading lower by 1.64% at $71.19/bbl, and Brent was down 1.35% at $74.62/bbl.</li>



<li>Oil prices edged lower as Hurricane Rafael&#8217;s impact on U.S. output eased and markets assessed Trump&#8217;s potential policies on global supply.</li>



<li>Natural Gas gained 0.63% to $2.710.</li>



<li>Gold was trading lower by 0.49% at $2,692.00, Silver fell 1.11% to $31.503, and Copper slipped 2.30% to $4.3290.</li>
</ul>



U.S. Futures at 05:30 AM ET



Dow futures slipped 0.04%, S&amp;P 500 futures were down 0.03%, and Nasdaq 100 futures fell 0.14%.



Forex at 05:30 AM ET



<ul>
<li>The U.S. dollar index declined 0.02% to 104.49, the USD/JPY was down 0.39% to 152.37, and the USD/AUD rose 0.68% to 1.5072.</li>



<li>The U.S. dollar edged higher this week, buoyed by &#8220;Trump trades&#8221; but tempered by policy uncertainty. The yen rose, and the Australian dollar logged solid weekly gains.</li>
</ul>



Photo by Pavel Bobrovskiy via Shutterstock

Asia

Emerging Markets

Eurozone

Futures

Commodities

Forex

ADIV

AGOV

ASHR

BBEU

BOIL

CQQQ

EEMA

FLAX

IEMG

IEUR

KDIV

SPEM

USDU

Asia Markets Mixed, Europe, Crude Oil, Gold And Dollar Cool Off - Global Markets Today While US Slept

Bitcoin tapped an all-time high, and Ethereum soared as the Federal Reserve's <a href="https://www.benzinga.com/economics/macro-economic-events/24/11/41820253/fed-cuts-interest-rates-to-lowest-since-february-2023-sticks-to-data-driven-path">latest quarter-point rate cut</a> boosted market momentum on Thursday.



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:30 p.m. ET)</td></tr><tr><td>Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>)</td><td>+1.46%</td><td>$76,365.42</td></tr><tr><td>Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>+8.52%</td><td>$2,938.85</td></tr><tr><td>Dogecoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/doge/usd">DOGE</a>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>-0.92%</td><td>$0.1943</td></tr></tbody></table></figure>



What Happened: The world's largest cryptocurrency hit a new all-time high at $76,872.61, barely two days after creating records on the day of the U.S. presidential election.



Ethereum powered above $2,900 for the first time in more than three months in a late-evening rally.



Bitcoin's market dominance rose above 60%, following a 3.44 percentage point gain in the last 24 hours, while Ethereum also saw a minor increase in market share.



In the past 24 hours, 89,458 traders were liquidated, with the total liquidations coming in at $311.71 million. Short-leveraged traders saw $186 million worth of their positions evaporate in the rally.



Bitcoin's Open Interest rose 2.88%, indicating an influx of fresh money in the derivatives market.



Bitcoin's Relative Strength Index (RSI) went into the overbought territory, as per TradingView, strengthening the case of a pullback.



That said, market sentiment cooled from "Extreme Greed" to "Greed," as per the Cryptocurrency Fear and Greed Index.



Top Gainers (24-Hours)



<figure class="wp-block-table"><table><tbody><tr><td>Cryptocurrency</td><td>Gains +/-</td><td>Price (Recorded at 7:30 p.m. ET)</td></tr><tr><td>Raydium (RAY)</td><td>+14.24%</td><td>$4.82</td></tr><tr><td>Cardano (ADA)</td><td>+13.49%</td><td>$0.4133</td></tr><tr><td>Mantle (MNT)</td><td>+13.17%</td><td>$0.6774</td></tr></tbody></table></figure>



The global cryptocurrency stood at $2.5 trillion, following a marginal contraction of 0.57% in the last 24 hours.



Stocks extended their winning streak on Thursday. The S&amp;P 500 gained 0.74% to close at a new record high of 5,973.10. The tech-heavy Nasdaq Composite added 1.51% to end at 19,269.46, marking its first close above 19,000.



The Dow Jones Industrial Average traded near the flatline, dropping just 0.59 points to 43,729.34.



The upswing followed the <a href="https://www.benzinga.com/economics/macro-economic-events/24/11/41820253/fed-cuts-interest-rates-to-lowest-since-february-2023-sticks-to-data-driven-path">Fed's 0.25 percentage point cut</a>, bringing the federal funds rate to a target range of 4.5% to 4.75%, the lowest since February 2023.



Fed Chair Jerome Powell hinted at the <a href="https://www.benzinga.com/news/large-cap/24/11/41826586/wall-street-closes-at-record-highs-after-reassurance-from-powell-magnificent-7-hit-17-trillion-tre">possibility of more easing in the future</a> but refrained from signaling a specific rate cut at the December meeting, stressing a data-dependent approach.



See More: <a href="https://www.benzinga.com/money/best-crypto-scanners">Best Cryptocurrency Scanners</a>



Analyst Notes: Popular cryptocurrency analyst Ali Martinez said that Bitcoin can hit a local top of $85,360 if it maintains support above $71,489, according to the MVRV Deviation Pricing Bands.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">If <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> maintains support above $71,489, the next local top could be around $85,360, based on the MVRV Deviation Pricing Bands. <a href="https://t.co/ilvzI5iNPO">pic.twitter.com/ilvzI5iNPO</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1854659596285043004?ref_src=twsrc%5Etfw">November 7, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Martinez also drew attention to the impending "altcoin season."&nbsp;



"This could be the ideal time to stack up on altcoins, as history shows that altseason often follows shortly after," the analyst added, referring to the ongoing dominance of Bitcoin.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Altseason hasn't even begun! We're in that part of the cycle where <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> is still outpacing <a href="https://twitter.com/hashtag/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw">#Ethereum</a>—totally normal at this stage. This could be the ideal time to stack up on altcoins, as history shows that altseason often follows shortly after. <a href="https://t.co/jxANVYk8kt">pic.twitter.com/jxANVYk8kt</a>&mdash; Ali (@ali_charts) <a href="https://twitter.com/ali_charts/status/1854623178523328901?ref_src=twsrc%5Etfw">November 7, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Widely-followed cryptocurrency analyst, going by the pseudonym Wolf dubbed Ethereum as the "best" risk/reward asset in the cryptocurrency market.



"The fundamentals have never been stronger, and technically, it's incredibly undervalued. The chart is looking bullish as ever, and with ground to catch up against BTC and SOL," the analyst added.



Read Next:&nbsp;&nbsp;&nbsp;&nbsp;



<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/10/41424841/donald-trumps-polymarket-odds-rise-to-61-3-after-mcdonalds-appearance">Donald Trump&#8217;s Polymarket Odds Rise To 61.3% After McDonald&#8217;s Appearance</a></li>
</ul>

$DOGE

Bitcoin, Ethereum Rise, Dogecoin Steady After Fed Cuts Rate: Analyst Predicts Apex Crypto's Next Local Top At $85.4K If This Happens

Leading economists offered contrasting views on Thursday after the Federal Reserve&#8217;s 25-basis-point rate cut, with some warning of persistent inflation risks while others supported the <a href="https://www.benzinga.com/news/large-cap/24/11/41826586/wall-street-closes-at-record-highs-after-reassurance-from-powell-magnificent-7-hit-17-trillion-tre">central bank&#8217;s gradual easing approach</a>.



What Happened: Jason Furman, a key figure in 44th U.S. President Barack Obama&#8217;s administration expressed skepticism about the Fed&#8217;s balanced risk assessment, pointing to concerning inflation indicators. 



&#8220;Core PCE inflation is 2.7% (above target),&#8221; Furman noted on X, warning that inflation could climb to &#8220;2.8% or possibly even 2.9%.&#8221; He suggested this trend could complicate the Fed&#8217;s planned rate reduction schedule unless labor markets weaken significantly.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">In most predictable event of the week, the Fed cut by 25bp. Monetary policy is going from very contractionary to reasonably contractionary. Makes sense given that inflation risks much lower than before but are still (contra the committee statement) higher than recession risks.&mdash; Jason Furman (@jasonfurman) <a href="https://twitter.com/jasonfurman/status/1854604354738913596?ref_src=twsrc%5Etfw">November 7, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Economist Peter Schiff delivered sharp criticism of Fed Chair Jerome Powell&#8216;s inflation-targeting strategy, citing structural challenges. 



&#8220;The Fed cut interest rates by 25 basis points, claiming they&#8217;re confident they&#8217;ll achieve their long-term inflation target of 2%,&#8221; Schiff wrote on X. &#8220;Powell can&#8217;t possibly believe that, considering a $36 trillion National Debt and the prospect of 2025 tax cuts sending demand and deficits soaring.&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The <a href="https://twitter.com/hashtag/Fed?src=hash&amp;ref_src=twsrc%5Etfw">#Fed</a> cut interest rates by 25 basis points, claiming they're confident they&#39;ll achieve their long-term <a href="https://twitter.com/hashtag/inflation?src=hash&amp;ref_src=twsrc%5Etfw">#inflation</a> target of 2%. <a href="https://twitter.com/hashtag/Powell?src=hash&amp;ref_src=twsrc%5Etfw">#Powell</a> can't possibly believe that, considering a $36 trillion <a href="https://twitter.com/hashtag/NationalDebt?src=hash&amp;ref_src=twsrc%5Etfw">#NationalDebt</a> and the prospect of 2025 tax cuts sending demand and deficits soaring.&mdash; Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1854610617828884617?ref_src=twsrc%5Etfw">November 7, 2024</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Wells Fargo struck a more moderate tone, with strategist Luis Alvarado <a href="https://x.com/yahoofinance/status/1854542364607447185?s=46">telling</a> Yahoo Finance they expect &#8220;another [cut] in December,&#8221; while maintaining flexibility about 2025 policy adjustments.



Why It Matters: The Fed&#8217;s decision, which lowered rates to 4.5%-4.75%, came amid robust economic indicators including 2.8% second-quarter GDP growth. Powell dismissed October&#8217;s weak employment data as temporary, citing strikes and weather disruptions.



Markets responded modestly to the day&#8217;s events, with the U.S. Dollar Index dipping 0.07% to 104.44 and the 10-year Treasury yield inching up to 4.353%.



The SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) closed at $595.61, up 0.77%, with a modest after-hours increase of 0.02%. The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) finished at $236.38, down 0.35%, though it rose 0.15% in after-hours trading.



The S&amp;P 500 gained 0.74%, reaching a record high of 5,973.10, while the Nasdaq advanced 1.51% to 19,269.46, marking its first close above 19,000. The Dow Jones Industrial Average was largely unchanged, ticking down by less than one point to end at 43,729.34.



S&amp;P 500, Dow, and Nasdaq 100 futures were flat. On the currency front, the Japanese Yen held steady at $0.0065, while the Euro slipped by 0.11% to $1.0788.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/news/large-cap/24/11/41826586/wall-street-closes-at-record-highs-after-reassurance-from-powell-magnificent-7-hit-17-trillion-tre">Wall Street Hits Record Highs After Powell&#8217;s Speech, Lifts Magnificent 7 Stocks To $17 Trillion In Historic Trading</a></li>
</ul>



Federal Reserve illustration created using artificial intelligence via MidJourney.



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Obama-Era Economist Jason Furman Warns Fed's Inflation Outlook May Be Too Optimistic — Peter Schiff Slams Powell's Strategy Amid National Debt Concerns

On Thursday, Cathie Wood-led Ark Invest made significant trades, with Palantir Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>), Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), Reddit Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDDT#NYSE">RDDT</a>), and Amazon.com, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) taking center stage.



The Palantir Trade



Ark Invest&#8217;s move to sell Palantir shares comes amid a tumultuous day for the company. <a href="https://www.benzinga.com/news/24/11/41808861/whats-going-on-with-palantir-stock-thursday">Palantir&#8217;s shares</a> experienced a rollercoaster ride, initially dipping due to a downgrade from Jefferies, only to bounce back following an announced partnership with Amazon Web Services (AWS) and Anthropic.



Despite Jefferies analyst Brent Thill downgrading Palantir from a Hold rating to an Underperform rating due to valuation concerns, the company&#8217;s stock has seen a surge of over 220% since the start of the year. This includes a 30% increase in just the past week, largely driven by strong quarterly results fueled by &#8220;unrelenting&#8221; AI demand.



Ark offloaded 264,513 Palantir shares on Thursday through its ARK Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>) and Ark Fintech Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKF#NYSE">ARKF</a>) funds, with the transaction valued at $14.8 million based on a closing share price of $55.88.



The Tesla Trade



Ark sold 85,019 shares of Elon Musk-led Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>). Wood has been on a Tesla share-selling spree of late. The latest transaction, which came through ARKK, was valued at $25.24 million.



Wood&#8217;s firm estimates that Tesla&#8217;s driverless ride-hailing service could <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41593922/cathie-woods-ark-invest-sees-tesla-unlocking-11-trillion-revenue-potential-with-rob">access an $11 trillion revenue</a> market by leveraging low operating costs to undercut existing ride-hailing prices. Tesla plans to debut this service next year in Texas and California, starting with drivers and aiming for fully autonomous rides as regulations allow.



The Reddit Trade



Ark Invest&#8217;s trade with Reddit comes at a time when the company is making significant strides in the social media space. Reddit&#8217;s market cap <a href="https://www.benzinga.com/general/social-media/24/11/41773982/reddit-overtakes-snap-in-market-value-after-election-day-rally">recently surpassed</a> that of Snap Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NYSE">SNAP</a>), reaching $21.5 billion after a 12% climb on Election Day. This is a notable achievement for the social media platform operator, which has a user base and revenue one-fourth the size of Snap&#8217;s.



See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41763537/bitcoin-hits-71k-ethereum-dogecoin-surge-as-results-trickle-in-for-trump-harris-presidenti?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin Hits $71K, Ethereum, Dogecoin Surge As Results Trickle In For Trump-Harris Presidential Battle: Analyst Predicts &#8216;Kickstart Of The Bull Market&#8217;</a>



Reddit&#8217;s growing popularity as a source of authentic information is also posing a challenge to Google&#8217;s dominance in the internet search market. This trend was highlighted at a recent conference hosted by The Wall Street Journal, where a journalist revealed she primarily uses Google Search to access Reddit for information.



The Wood-led firm sold 62,389 Reddit shares from its ARK Next Generation Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKW#NYSE">ARKW</a>) fund on Thursday, a transaction valued at $8.2 million. Reddit shares closed the day 8.6% higher at $131.44.



The Amazon.com Trade



Ark Invest&#8217;s decision to purchase Amazon shares comes at a time when insiders at the e-commerce giant have been <a href="https://www.benzinga.com/markets/equities/24/11/41763411/jeff-bezos-sells-214m-worth-of-amazon-shares-in-latest-stock-move-heres-how-much-he-still-owns">selling off their shares</a>. According to a recent Benzinga report, Jeff Bezos, Amazon&#8217;s executive chair, <a href="https://www.benzinga.com/markets/equities/24/11/41763411/jeff-bezos-sells-214m-worth-of-amazon-shares-in-latest-stock-move-heres-how-much-he-still-owns">recently sold</a> 1.07 million shares of Amazon stock at $200.07 per share, raking in approximately $213.8 million. This left Bezos with 926.41 million shares of Amazon.



Bezos was not the only Amazon insider selling shares. Recently, director Jonathan Rubinstein also offloaded $1 million worth of shares, while Douglas Herrington, CEO of Worldwide Amazon Stores, sold $696,360 worth of Amazon shares.



Ark acquired 150,675 Amazon shares through its ARKK fund, a transaction valued at $31.6 million. Amazon's stock closed Thursday at $210.16, up 1.5%. Other Key Trades:



<ul>
<li>Ark purchased shares of 10X Genomics Inc. (TXG) and sold shares of Moderna Inc (MRNA).</li>



<li>The firm picked up shares of Illumina Inc. (ILMN), ABSCI Corp (ABSI), and Guardant Health Inc. (GH) but sold shares of Unity Software Inc. (U), Sofi Technoliogies Inc. (SOFI), and Repare Therapeutics Inc. (RPTX).</li>
</ul>



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41798981/jim-cramer-calls-trumps-return-to-white-house-a-huge-win-for-the-stock-market?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Jim Cramer Calls Trump&#8217;s Return To White House A &#8216;Huge Win For The Stock Market&#8217;</a></li>
</ul>



This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

AMZN

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SNAP

Cathie Wood's Tech Rotation: Amazon Mega-Buy While Tesla, Reddit And Palantir Get Axed

The U.S. stock market closed at record highs Thursday after the Federal Reserve's widely expected decision to lower interest rates and Fed Chair Jerome Powell's press conference where he reassured markets by dismissing concerns about his potential resignation or removal following the <a href="https://www.benzinga.com/economics/macro-economic-events/24/11/41823887/powell-dismisses-talk-of-resignation-after-trump-victory-says-policy-is-still-res">election of Donald Trump. </a>



The S&amp;P 500 — as tracked by SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — closed at 5,973 points, up 0.7% for the day.



Tech stocks outperformed the broader market, with the Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), surging 1.5% higher to an all-time high of 21,100 points.



Notably, the combined market capitalization of the Magnificent Seven — Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>), Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Amazon Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) — soared to over $17 trillion, setting a new peak.



The Dow Jones stalled after Wednesday&#8217;s 3.6% rise, while small caps eased 0.4% following a 5.8% jump the previous day.



Top-performing sectors in the S&amp;P 500 were technology, up 1.8%, followed by communications services and consumer discretionary, both up by 1.3%. Financials, which rallied the most Wednesday, lagged on Thursday, down 1.5%.



<h3 class="wp-block-heading">Fed Cuts Rates, Powell Dismisses Concerns Over His Future </h3>



The Federal Reserve cut interest rates by 0.25% to 4.5%-4.75% as expected, a reduction in the pace of easing after the larger 0.5% cut in September.



The Fed recognized robust economic momentum, with the GDP rising by 2.8% in the second quarter, and resilient consumer confidence.



Powell downplayed weak October employment data, noting that near-zero job growth was largely due to temporary factors like strikes and hurricanes rather than underlying economic weakness.



Powell described the rate cut as part of a "further recalibration" of monetary policy, which he emphasized remains "restrictive." He hinted at the possibility of more easing in the future but refrained from signaling a specific rate cut at the December meeting, stressing a data-dependent approach.



When asked if he would resign if requested by Trump, Powell responded firmly, "No," reiterating that the president does not have the legal authority to remove the Fed chair.



Following Powell's comments, market-implied expectations for a 25-basis-point rate cut in December surged to 75%, recovering from Wednesday's post-election dip.



Treasury yields pulled back sharply, with the 10-year yield dropping 10 basis points to 4.33%, almost erasing the spike from the previous day.



The U.S. dollar weakened 0.7%, while gold prices, as tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), rebounded 1.8% after Wednesday&#8217;s 3% slump. 



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) traded up by 1% at 4:30 p.m. in New York, hitting a record-high of $76,990 during the session. 



<h3 class="wp-block-heading">S&amp;P 500&#8217;s Top 5 Gainers On Thursday</h3>



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Name</td><td>Last</td><td>Chg %</td></tr><tr><td>EPAM Systems, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EPAM#NYSE">EPAM</a>)</td><td>233.00</td><td>14.95%</td></tr><tr><td>Viatris Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VTRS#NASDAQ">VTRS</a>)</td><td>13.20</td><td>13.69%</td></tr><tr><td>Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>)</td><td>25.47</td><td>12.21%</td></tr><tr><td>Warner Bros. Discovery, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>)</td><td>9.38</td><td>11.91%</td></tr><tr><td>McKesson Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>)</td><td>607.76</td><td>10.64%</td></tr></tbody></table></figure>



<h3 class="wp-block-heading">S&amp;P 500&#8217;s Top 5 Losers On Thursday</h3>



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Name</th><th>Last</th><th>Chg %</th></tr></thead><tbody><tr><td>Match Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MTCH#NASDAQ">MTCH</a>)</td><td>31.11</td><td>-17.86%</td></tr><tr><td>APA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APA#NASDAQ">APA</a>)</td><td>21.93</td><td>-11.34%</td></tr><tr><td>CVS Health Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>)</td><td>57.09</td><td>-7.33%</td></tr><tr><td>Rockwell Automation, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ROK#NYSE">ROK</a>)</td><td>277.22</td><td>-5.71%</td></tr><tr><td>Becton, Dickinson and Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BDX#NYSE">BDX</a>)</td><td>227.16</td><td>-5.38%</td></tr></tbody></table></figure>



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41824236/feds-interest-rate-cut-pace-expected-to-slow-economists-weigh-trumps-white-house-re">Fed&#8217;s Interest Rate Cut Pace Expected To Slow: Economists Weigh Trump&#8217;s White House Return</a></li>
</ul>



Wall Street bull illustration created using artificial intelligence via MidJourney.

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Wall Street Hits Record Highs After Powell's Speech, Lifts Magnificent 7 Stocks To $17 Trillion In Historic Trading

Federal Reserve Chair Jerome Powell firmly dismissed speculation Thursday over his potential resignation or removal upon Donald Trump&#8216;s return to the White House, stating the president cannot legally <a href="https://www.benzinga.com/topic/interest-rates">fire the central banker.</a>



At the press conference following the Federal Reserve&#8217;s decision to lower the benchmark interest rate by 25 basis points to a target range of 4.5%-4.75%, Powell addressed swirling questions about his future and the Fed reactions after the election results.



When asked &#8220;if he asked you to leave, would you go?&#8221; Powell responded with a clear &#8220;no.&#8221;



The president-elect, who has previously criticized Powell for not slashing rates quickly enough, is &#8220;not permitted under the law&#8221; to fire a central bank governor, stressing the need to preserve Fed&#8217;s independence from political will.



The Fed&#8217;s approach to setting policy remains reactive to economic data. &#8220;We don&#8217;t guess, we don&#8217;t speculate, and we don&#8217;t assume,&#8221; he said. 



He warned that &#8220;U.S. fiscal policy is on an unsustainable path,&#8221; though he emphasized that fiscal matters fall outside the Fed's direct control.



Powell also addressed the recent increase in Treasury yields, asserting that the rise likely reflects expectations for stronger economic growth rather than a significant shift in inflation expectations.



Related Link: <a href="https://www.benzinga.com/economics/macro-economic-events/24/11/41820253/fed-cuts-interest-rates-to-lowest-since-february-2023-sticks-to-data-driven-path">Fed Cuts Interest Rates To Lowest Since February 2023, Sticks To Data-Driven Path</a>



<h3 class="wp-block-heading">Fed Rate Cut: &#8216;Recalibration&#8217; Amid Restrictive Policy</h3>



Powell described Thursday&#8217;s rate cut as a "further recalibration of policy stance" to support the economy&#8217;s strength while continuing the fight against inflation.



He emphasized that despite the reduction, "policy is still restrictive," indicating the Fed's stance is not yet accommodative or neutral.



Powell highlighted the U.S. economy's "robust" expansion, underscored by steady growth and moderating inflation. Despite signs of cooling, the labor market remains solid, with the unemployment rate at 4.1% in October.



Though the October nonfarm payrolls report showed a sharp drop in the pace of job creation — 12,000 compared to 232,000 in September — Powell attributes this decline to strikes and hurricanes rather than fundamental weakness.



Labor market dynamics have shifted over the last year, with wage growth moderating and job openings declining to levels considered more sustainable.



Labor conditions are no longer a significant source of inflationary pressure and wage gains have aligned with the Fed's 2% inflation target, Powell said. 



The omission of certain phrases in the November statement — such as &#8220;further progress&#8221; on disinflation and &#8220;the committee had gained greater confidence that inflation was progressing towards its 2% goal&#8221; — was not intended to signal a pause or suggest concerns about persistent inflation, he said. 



The previous language in the September statement was specific to the rationale behind the initial rate cut at that time, the Fed Chair said. 



When asked about the possibility of a December rate cut, Powell declined to give any indication, reiterating that the Fed's decision would be guided by incoming economic data. 



Read Next:



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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41820744/9-stocks-to-watch-financial-sector-outshines-tech-in-2024-as-trump-trade-sparks-m-a">9 Stocks To Watch: Financial Sector Outshines Tech In 2024 As &#8216;Trump Trade&#8217; Sparks M&amp;A Optimism</a></li>
</ul>



Federal Reserve Chair Jerome Powell speaks at a press conference Wednesday, May 1, 2024. Photo courtesy of the Federal Reserve.

Powell Dismisses Talk Of Resignation After Trump Victory, Says 'Policy Is Still Restrictive'

Electric vehicle company Rivian Automotive (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) reported third-quarter financial results <a href="https://www.benzinga.com/earnings">after market close Thursday.</a>



Here are the key highlights.



What Happened: Rivian announced third-quarter revenue of $874 million, which missed a Street consensus estimate of $1.00 billion, according to data<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent110724&amp;t=be2bearmibe3na1"> from Benzinga Pro.</a>



The company reported a loss of 99 cents per share, missing a Street consensus loss of 92 cents per share.



Operating expenses in the third quarter were $777 million, down from $963 million in the third quarter of the prior year.



Rivian had production of 13,157 vehicles in the third quarter and deliveries of 10,018 vehicles in the quarter. &nbsp;



"This quarter we have made progress against our key objectives and have seen meaningful progress on our Gen 2 R1 cost structure due to the new technologies incorporated into the vehicle and manufacturing process," Rivian CEO RJ Scaringe said.



The company announced a strategic supply agreement with LG Energy Solutions Thursday. The supply agreement will help power the company's next-generation midsize electric vehicle platform.



Rivian ended the third quarter with $6.74 billion in cash and cash equivalents, which includes $1 billion of an unsecured convertible note issued to Volkswagen International America, related to the joint venture with Volkswagen (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>). The note will automatically convert into shares of Rivian Class A stock on Dec. 1, 2024.



Read Also: <a href="https://www.benzinga.com/trading-ideas/previews/24/11/41817826/rivian-q3-earnings-preview-analyst-worries-about-demand-will-company-comment-on-2024-elect">Rivian Q3 Earnings Preview: Analyst Worries About Demand, Will Company Comment On 2024 Election Impact?</a>



What's Next: Rivian said it expects to reach positive gross profit in the fourth quarter with higher revenue per unit and improved fixed costs per unit.



The company said it is making progress on the R2 vehicle.



Rivian reaffirmed its 2024 production guidance of a range of 47,000 to 49,000 and a delivery outlook of 50,5000 to 52,000 vehicles for the full year.



EBITDA guidance ranged from a loss of $2.825 billion to $2.875 billion.



"We are excited about the future and our midsize SUV, R2, which we believe will be a fundamental driver of Rivian's growth. We're also looking forward to closing our proposed joint venture with Volkswagen Group, which is expected in the fourth quarter," Scaringe said.



RIVN Price Action: Rivian stock is up 3.2% to $10.38 in after-hours trading Thursday, versus a 52-week trading range of $8.26 to $24.61.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/trading-ideas/technicals/24/11/41814412/rivian-vs-lucid-which-ev-stock-has-the-edge-ahead-of-q3-earnings">Rivian Vs. Lucid: Which EV Stock Has The Edge Ahead Of Q3 Earnings?</a></li>
</ul>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="&#x1f534;WATCH LIVE: Rivian Q3 2024 Earnings Call &#x7C; $RIVN" width="500" height="281" src="https://www.youtube.com/embed/EWhgjRxRRlI?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



Photo: rblfmr/Shutterstock.com

Earnings

Rivian Q3 Earnings Highlights: Revenue, EPS Miss, CEO Confident In Q4 Gross Profit, R2 Being 'Fundamental Driver' Of Growth

Financial stocks have surged ahead of tech in year-to-date performance, fueled by a Trump-led rally on Wednesday that lifted banks and brokers amid investor expectations of a <a href="https://www.benzinga.com/topic/donald-trump">deregulation-friendly political landscape ahead.</a>



The Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) has risen by 30% in 2024, outpacing the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>), which is up 26% this year. 



Small and mid-sized banks, tracked by the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>), have also seen strong performance, with a 13% jump following election results, bringing them in line with tech sector gains. 



Financial stocks, which have lagged behind technology for six of the past seven years, are now catching up, propelled by renewed optimism for deregulation and M&amp;A activities.



<h1 class="wp-block-heading">Analysts Expect M&amp;A Activity to Heat Up</h1>



With the Trump administration&#8217;s return to the White House, analysts are projecting a significant uptick in mergers and acquisitions (M&amp;A) in the financial sector.



&#8220;Under the upcoming Trump II administration, we expect a more favorable backdrop for M&amp;A which could lead to additional activity in the space after having been quiet for the past few years,&#8221; said Anthony Elian, CFA, analyst at JPMorgan.



Lower regulatory barriers could pave the way for consolidation among smaller banks, while larger financial institutions are expected to benefit from a more active capital markets environment. 



Read also: <a href="https://www.benzinga.com/etfs/sector-etfs/24/11/41788181/regional-bank-stocks-notch-strongest-day-in-4-years-why-analysts-expect-several-tailwinds-from-t">Regional Bank Stocks Notch Strongest Day In 4 Years: Why Analysts Expect &#8216;Several Tailwinds&#8217; From Trump Policies</a>



<h1 class="wp-block-heading">A Lighter Regulatory Touch Boosts FinTech and Digital Assets</h1>



Devin Ryan, analyst at Citizens JMP Securities, highlighted that a Trump-led "sweep of Congress" could significantly ease regulatory pressures for the broader financial and fintech sectors.



&#8220;The &#8216;Trump Trade&#8217; had already been underway in the market in recent weeks, but the resounding presidential win, and perhaps more importantly, likely sweep of Congress, is adding fuel to the fire in stock moves,&#8221; Ryan explained.



For fintech firms, this shift could relieve recent regulatory scrutiny, particularly in areas such as connectivity with traditional banks and practices overseen by the Consumer Financial Protection Bureau (CFPB). Companies involved in digital assets stand to benefit even more, as regulatory clarity would open the door for new market entrants and increase industry participation.



"Digital assets could arguably be the biggest winner of them all," said Ryan, who sees sentiment in the space "improving materially from here." 



Ryan indicates the political climate has shifted to one more favorable for cryptocurrencies, as policymakers begin to recognize the economic and electoral weight of pro-crypto sentiment.



The expert is particularly bullish on several key players in the financial sector. 



Among asset managers and retail brokers poised to capitalize on the deregulation wave, Citizens JMP Securities&#8217; top picks are:



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Company</th><th>Price Target</th><th>Sector</th></tr></thead><tbody><tr><td>Perella Weinberg Partners (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PWP#NASDAQ">PWP</a>)</td><td> $26</td><td> Investment Banking</td></tr><tr><td>Blue Owl Capital Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OWL#NYSE">OWL</a>)</td><td> $25</td><td> Alternative Asset Mgmt</td></tr><tr><td>Carlyle Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CG#NASDAQ">CG</a>)</td><td> $60</td><td> Private Equity</td></tr><tr><td>LPL Financial (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LPLA#NASDAQ">LPLA</a>)</td><td>$310</td><td> Wealth Management</td></tr><tr><td>Charles Schwab Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHW#NYSE">SCHW</a>)</td><td> $84</td><td> Retail Brokerage</td></tr></tbody></table></figure>



In fintech, Ryan sees considerable upside for digital asset players and platforms with a strong foothold in crypto and private markets. His top picks include:



<figure class="wp-block-table is-style-stripes"><table><thead><tr><th>Company</th><th>Price Target</th><th>Key Segment</th></tr></thead><tbody><tr><td>Robinhood Markets Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>)</td><td> $33</td><td> Retail Brokerage, Crypto</td></tr><tr><td>Forge Global Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FRGE#NYSE">FRGE</a>)</td><td> $7</td><td> Private Markets</td></tr><tr><td>Dave Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DAVE#NASDAQ">DAVE</a>)</td><td> $75</td><td> FinTech, Consumer Finance</td></tr><tr><td>Coinbase Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>)</td><td> $320</td><td> Crypto Exchange</td></tr></tbody></table></figure>



According to Ryan, Robinhood is expected to expand its crypto offerings, potentially enhancing customer engagement, while Forge Global is poised to gain from rising sentiment in private markets.



Coinbase, the largest U.S. cryptocurrency exchange, stands to benefit from clearer regulatory guidelines and the growing acceptance of crypto assets.



Read Next:



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Photo: Shutterstock

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9 Stocks To Watch As Bank Stocks Blow Past Tech Names In 2024: Thank The 'Trump Trade'

Editor&#8217;s note: This story has been updated to clarify the exact words from the September Fed statement that were in omitted in November: &#8220;The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent.&#8221;



The Federal Reserve lowered interest rates by 0.25 percentage points on Thursday, as widely anticipated by the market, bringing the federal funds rate to a target range of 4.5% to 4.75%, the <a href="https://www.benzinga.com/topic/interest-rates">lowest since February 2023. </a>



With this decision, the Fed slowed the pace of rate cuts compared to September, when policymakers opted for a more substantial 0.5% cut to initiate the easing cycle.



The Fed's November policy statement continued to highlight that the economy has expanded at a &#8220;solid pace,&#8221; job growth &#8220;has generally eased&#8221; and inflation &#8220;has made further progress&#8221; toward the 2% target, although it remains &#8220;somewhat elevated.&#8221;



The Personal Consumption Expenditure (PCE) inflation rate eased to 2.1% year-over-year in September 2024, marking its smallest increase since February 2021. The Fed&#8217;s preferred inflation measure, the core PCE price index, which excludes food and energy, remained steady at 2.7%.



Yet the November statement surprisingly omitted a line from September that stated: &#8220;The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent.&#8221;



The Fed reiterated a data-driven approach and highlighted the need to monitor economic implications for future policy decisions, refraining from committing to a predetermined path.



The next Federal Open Market Committee (FOMC) meeting is scheduled for December 18, 2024.



Financial markets are placing a 66% probability on another 25-basis-point cut at the year's final meeting, as per CME FedWatch, though expectations have dropped significantly following this week&#8217;s election results.



Market attention now shifts to Fed Chair Jerome Powell's press conference at 2:30 p.m. ET. 



Powell is expected to face questions on potential inflationary pressures from Trump&#8217;s trade tariffs and anticipated higher budget deficits and how the Fed might respond to changes in the <a href="https://www.benzinga.com/markets/equities/24/11/41785495/us-treasuries-take-sharpest-plunge-in-a-year-ahead-of-fed-meeting-could-powell-adjust-stance-in-">economic and political landscape</a>.



Read Next:



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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41814589/why-trumps-boost-to-treasury-yields-inflation-expectations-may-weaken-feds-efforts-">Why Trump&#8217;s Boost To Treasury Yields, Inflation Expectations May Weaken Fed&#8217;s Efforts To Cut Interest Rates</a></li>
</ul>



Illustration of Federal Reserve Chair Jerome Powell created using artificial intelligence via MidJourney.

Fed Cuts Interest Rates To Lowest Since February 2023, Sticks To Data-Driven Path (CORRECTED)

After Wednesday&#8217;s &#8220;everything rally&#8221; spurred by the election results, investors took a less euphoric approach on Thursday ahead of the Federal Open Market Committee (FOMC) meeting.



The Fed is widely expected to cut interest rates by 25 basis points, bringing them to a range of 4.5%-4.75%, following a previous 50-basis-point cut in September.



Yet, all eyes are on Fed Chair Jerome Powell&#8217;s comments at 2:30 p.m. ET regarding the potential for future rate hikes and his views on inflation risks. Concerns from the market center on the possibility of a policy U-turn driven by higher fiscal deficits and price pressures from trade tariffs under a Trump administration.



Tech stocks led gains, with the Nasdaq 100 extending its record-breaking levels, surpassing 21,000 points and eyeing a third consecutive positive session. The S&amp;P 500 and Dow Jones posted more modest gains, while the Russell 2000 paused after Wednesday&#8217;s 5.8% leap.



Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) remained a top performer among mega-cap stocks, bolstered by expectations of Elon Musk&#8216;s influence in the upcoming administration.



Treasury yields reversed a substantial portion of Wednesday's post-election increase, while the U.S. dollar dipped by 0.7%.



Metal commodities rebounded after Wednesday&#8217;s sharp losses, with gold rising 1.3%, silver up 2% and copper rallying over 4%.



Oil prices strengthened by 1%, with West Texas Intermediate trading around $72 per barrel.



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose 0.8%, reaching $76,000 to extend its record highs, while Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) outperformed with a gain of over 4%.



<h1 class="wp-block-heading">Thursday&#8217;s Performance In Major U.S. Indices, ETFs</h1>



<figure class="wp-block-table is-style-stripes"><table><tbody><tr><td>Major Indices</td><td>Price</td><td>1-day % chg</td></tr><tr><td>Nasdaq 100</td><td>21,050.78</td><td>1.3%</td></tr><tr><td>S&amp;P 500</td><td>5,968.27</td><td>0.7%</td></tr><tr><td>Dow Jones</td><td>43,748.20</td><td>0.0%</td></tr><tr><td>Russell 2000</td><td>2,389.10</td><td>-0.2%</td></tr></tbody></table></figure>



According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent110624&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.7% to $594.84.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;stalled at $437.25.</li>



<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) soared 1.3% to $512.38.</li>



<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) eased 0.3% to $236.67.</li>



<li>The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, rising 1.3%. The Financials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) lagged, down 1.2%.</li>
</ul>



<h1 class="wp-block-heading">Thursday&#8217;s Stock Movers</h1>



Some relevant reactions to earnings reports are:



<ul>
<li>Qualcomm Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), up 0.1%, </li>



<li>Gilead Sciences Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GILD#NASDAQ">GILD</a>), up 6.2%, </li>



<li>MercadoLibre Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MELI#NASDAQ">MELI</a>), down 16%, </li>



<li>APPLovin Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APP#NASDAQ">APP</a>), up 43%, </li>



<li>McKesson Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCK#NYSE">MCK</a>), up 11%, </li>



<li>Take-Two Interactive Software Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TTWO#NASDAQ">TTWO</a>), up 6.3%, </li>



<li>Transdigm Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDG#NYSE">TDG</a>), down 4.4%</li>
</ul>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41814589/why-trumps-boost-to-treasury-yields-inflation-expectations-may-weaken-feds-efforts-">Why Trump&#8217;s Boost To Treasury Yields, Inflation Expectations May Weaken Fed&#8217;s Efforts To Cut Interest Rates</a></li>
</ul>



This image was created using artificial intelligence.

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Nasdaq 100 Extends Record Levels Ahead Of Fed Meeting, Tesla Hits 26-Month Highs, Small Caps Stall: What's Driving Markets Thursday?

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