2024 Election Results, Markets Rally, Nvidia Becomes Most Valuable Company

Former President Donald Trump has won the 2024 election according to NBC and the Associated Press.

This news sent stocks into a rally, reflecting Wall Street’s perception of Trump’s economic agenda. Dow Jones futures surged 1,254 points (about 2.9%), marking the first time since 2022 that the index has risen more than 1,000 points in a day. The S&P 500 gained 2.4%, while the Nasdaq 100 climbed 1.8%, indicating broad optimism in the tech and industrial sectors.

This political shift points to a smoother path for reforms on immigration, international trade, and taxes. Investors expect that a united Republican front may lead to tax cuts and deregulation, which could spur business activity and potentially boost corporate earnings.

Nvidia Becomes the World’s Most Valuable Company

Nvidia (NASDAQ: NVDA) has once again claimed the title of the world’s most valuable publicly traded company, surpassing Apple.

The semiconductor giant’s shares rose nearly 3%, giving it a market cap of $3.43 trillion, slightly higher than Apple’s $3.4 trillion. Nvidia has seen explosive growth this year, with its stock price tripling in 2024 on robust demand for its graphics processing units (GPUs) used in AI and gaming.

In contrast, Apple’s stock has risen a more modest 17%, making Nvidia’s dominance in tech one of the most talked-about shifts of the year.

CVS Reports Mixed Earnings Amid Rising Costs

CVS Health (NYSE: CVS) reported its third-quarter earnings, showing mixed results. Higher medical costs pressured earnings, with adjusted earnings per share at $1.09, below the analyst forecast of $1.51.

However, revenue increased to $95.43 billion, a 6.3% rise from last year, driven by growth in its pharmacy and insurance businesses. In leadership news, CVS named Steve Nelson, former CEO of UnitedHealth Group, as president of its health insurance unit, Aetna. This change comes as David Joyner takes over as CEO, marking a shift as the company navigates challenges in healthcare and retail pharmacy.

Fed Expected to Cut Rates Amid Lower Rate Projections

The Federal Reserve is meeting for its two-day policy session, with investors anticipating a quarter-point rate cut.

The market sentiment reflects the belief that the Fed may hold off on deeper rate cuts after this month and possibly another reduction in December. Futures now suggest the Fed will pause cuts after mid-2025, with borrowing costs expected to settle between 3.75% and 4%. Currently, rates are between 4.75% and 5%.

The Fed’s cautious approach could signal stability, as policymakers weigh inflation risks against growth goals.

Oil Prices Drop on Rising U.S. Inventories and Strong Dollar

Oil prices fell Wednesday due to an unexpected rise in U.S. crude inventories and a stronger dollar, which makes oil pricier for foreign buyers. Brent crude dropped 1.8% to $74.20 per barrel, while West Texas Intermediate (WTI) declined 1.7% to $70.75. Data from the American Petroleum Institute showed a weekly U.S. inventory increase of 3.13 million barrels, surpassing the expected 1.1 million. If confirmed, this buildup could suggest slowing fuel demand as winter approaches, and the high dollar could further curb demand as global buyers look for more affordable energy sources.