Viking Fund Management Sells Big Oil Stocks In Q3, Cuts Tesla Position In Half, Adds To Largest Position Broadcom

The “Trump-related everything rally” reignited across markets on Monday, with heightened focus on last week's top performers like small caps, financials, Tesla Inc. , and cryptocurrencies, all surging as the new trading week began.

The Russell 2000 Index outperformed major large-cap indices, nearing a retest of its all-time high from November 2021.

Financials shone brightest again, with both large and regional banks posting strong gains. The SPDR S&P Regional Banking ETF surged 3.9%, reaching levels last seen in August 2022.

Bitcoin also dominated headlines, surpassing the $85,000 milestone and fueling widespread gains across other crypto assets.

Major crypto-related stocks, including Coinbase Global Inc. , rallied nearly 22%, hitting highs last seen in late November 2021. MARA Holdings soared 25%, with Riot Platforms Inc. and CleanSpark Inc. (NASDAQ:CSLK) both up by 21%.

Within tech, Tesla continued its rally, while the rest of the sector lagged, weighed down by sharp declines in semiconductors following new AI-related export restrictions to China, impacting Taiwan Semiconductor Manufacturing Company .

Elsewhere, the U.S. dollar extended its gains, while Treasury yields held steady, with the 10-year yield hovering around 4.3%.

Prices tumbled in commodities, with the exception of natural gas, which rose roughly 10%. Gold dropped over 2%, and oil fell by 3%.

Monday’s Performance In Major US Indices, ETF

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust held steady at $598.43.
• The SPDR Dow Jones Industrial Average rose 0.7% to $443.23.
• The tech-heavy Invesco QQQ Trust Series inched 0.3% lower to $512.45.
• The iShares Russell 2000 ETF rose 1.6% to $242.00.
• The Financials Select Sector SPDR Fund outperformed, rising 1.8%. The Technology Select Sector SPDR Fund lagged, down 0.8%.

Monday’s Stock Movers

Stocks reacting to earnings reports were Monday.com ltd down 15% and Aramark , up 1%.

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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Chip stocks including Nvidia Corp , Broadcom Inc , Intel Corp , Arm Holdings plc , Advanced Micro Devices, Inc Credo Technology Group Holding , Lattice Semiconductor Corp , Microchip Technology Inc , Marvell Technology, Inc , MACOM Technology Solutions Holdings , Micron Technology, Inc , Qualcomm Inc , Qorvo, Inc , United Microelectronics Corp are trading lower Monday in sympathy with contract chipmaker Taiwan Semiconductor Manufacturing Co .

Taiwan Semiconductor stock took a hit after the U.S. Department of Commerce instructed the chipmaker to cease supplying China with sophisticated chips—of 7 nanometers or more advanced designs—that support AI and graphics processing capabilities.

The U.S. move sent jitters across the sector, anticipating further actions from President-elect Donald Trump’s administration, which had previously attacked the U.S. Chips Act and Taiwan, the hometown of Taiwan Semiconductor.

Also Read: Monday.com Stock Tanks Despite Q3 Beat, Raised Outlook

U.S. stocks could get off to a positive start on Monday after the averages registered their best week this year following the reelection of Donald Trump.

After witnessing heightened volatility in the run-up to the high-voltage 2024 presidential elections, and the Federal Open Market Committee's (FOMC) rate decision, Fed chair Jerome Powell remained cautious in his approach, but delivered the 25 basis point cut that was widely expected by experts and investors.

In premarket trading on Monday, the SPDR S&P 500 ETF Trust was up 0.28% to $599.84 and the Invesco QQQ ETF fell 0.28% to $515.57, according to Benzinga Pro data.

Cues From Last Week:

Dow Jones and S&P 500 registered their best week of the year after the election of Trump as the 47th U.S. president.

The S&P 500 surged 4.66% last week, while the Dow gained 4.61% during that period, with both indices recording their best week since Nov. 2023. The Nasdaq, meanwhile, jumped 5.74% during the week.

Most sectors on the S&P 500 closed on a positive note, with consumer staples, utilities, and real estate stocks recording the biggest gains on Friday.

However, materials and communication services stocks bucked the overall market trend, closing the session lower.

Insights From Analysts:

Ari Wald, head of technical analysis at Oppenheimer & Co., noted that the current rally in U.S. equity markets is based on multiple factors and not just the post-election rush due to Trump's victory.

“There's market strength and there's meaningful market strength. We see last week's post-election breakout as meaningful market strength based on wide-ranging bullish action."

Moving past the election, investors will be looking forward to crucial economic data such as the October Consumer Price Index, or CPI. Economists expect a moderate uptick in CPI inflation to 2.6% in October, as compared to 2.4% in September.

The core inflation is expected to remain unchanged at 3.3%.

"The October CPI report will likely support the notion that the last mile of inflation’s journey back to target will be the hardest,” said economists at Wells Fargo, led by Jay Bryson.

Investors will also keep an eye out for crucial retail sales data ahead of the beginning of the holiday season.

Nathan Peterson, Director of Derivatives Analysis at the Schwab Center for Financial Research, laid out the thesis for market movements for the next week.

"If history is any guide, it shouldn’t be a surprise if we get some “back and fill” price action (consolidation of gains) from this week’s surge in stocks, but the timing is difficult if not impossible to predict," Peterson said.

"Today’s price action suggests to me that the post-election upside momentum is still in play, which bodes well for stocks, at least for the first half of next week."

Overall, Peterson maintains a cautious stance, saying markets could witness bullish momentum to kick off the week, but bearish sentiments could take over during the second half.

See Also: How To Trade Futures

Upcoming Economic Data

Monday's economic calendar is light, but crucial economic data is scheduled for the rest of the week.

• On Tuesday, Fed Gov. Christopher Waller will speak at 10 a.m. ET.
• Richmond Fed President Tom Barkin will speak at 10:15 a.m. ET.
• Philadelphia President Patrick Harker will speak at 10 a.m. ET.
• On Wednesday, the Consumer Price Index (CPI) will be released at 8:30 a.m. ET.
• New York Fed President John Williams will speak at 9:30 a.m. ET.
• Dallas Fed President Lorie Logan will speak at 9:45 a.m. ET.
• The monthly U.S. federal budget will be released at 2 p.m. ET.
• On Thursday, Federal Reserve Gov. Adriana Kugler will speak at 7 a.m. ET.
• Initial jobless claims data will be released at 8:30 a.m. ET.
• Federal Reserve Chair Jerome Powell will speak at 3 p.m. ET.
• On Friday, the Import price index will be released at 8:30 a.m. ET.
• Retail sales data will be released at 8:30 a.m. ET

Stocks In Focus:

• Taiwan Semiconductor Manufacturing Co. will be in focus on Monday after it was reportedly ordered to halt shipments of advanced chips to China.
• Investors are awaiting earnings results from Aramark , Live Nation Entertainment, Inc. NYSE: LYV), and monday.com Ltd. today.
• Trump Media & Technology Group Corp. shares gain over 5% in premarket trading on Monday.
• Tesla Inc. shares surged over 7%.

Commodities, Bonds And Global Equity Markets:

Crude oil futures experienced sideways movement in the early New York session, falling by 1.28%.

The 10-year Treasury note yield eased marginally to 4.306%.

Major Asian markets ended mixed on Monday.

Bitcoin hit the $81000 mark first time in history as cryptocurrencies rally after Trump’s win last week.

Read Next:

• Bitcoin Surges Past $80,000 Milestone For First Time On Optimism Over Trump

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