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Stocks Are Mixed as the Market Takes a Breath After the Post-Election Rise
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Stocks Are Mixed as the Market Takes a Breath After the Post-Election Rise

Stocks were mixed in early trading on Tuesday as the market took a breather after a week-long election-fuelled rally that sent major indexes to a series of record highs.

The Dow Jones Industrial Average and S&P 500 were down 0.3% and 0.1%, respectively, while the Nasdaq Composite was up 0.1% about an hour after the opening bell. Indices closed at: All-time highs on MondayThe S&P 500 index finished above 6,000 points for the first time. Investors’ optimism remains high following Donald Trump’s decisive victory in last week’s presidential election and the Federal Reserve’s move to lower interest rates.

Tesla’s (TSLAShares, which were among the biggest gainers during the rally, were down about 2% in early trading. The stock rose more than 40 percent last week on hopes that the electric vehicle maker will benefit from CEO Elon Musk’s close relationship with the president-elect.

Other mega-cap tech stocks were mixed with Nvidia (NVDA), Microsoft’s (MSFT) and Meta Platforms (META) gains strength while Apple (AAPL), Amazon (AMZN) and Alphabet (Google) fell slightly.

Other notable gains early Tuesday include Honeywell shares (sweetie) increased by over 4% after one year. Bloomberg Activist investor Elliott Investment Management reportedly bought a $5 billion stake in the company. Home Depot (HD) shares gave back earlier gains, falling about 0.5%. The retailer reported delivered better-than-expected quarterly results and increased sales forecasts. Shopify (SHOPPING CENTRE) shares rose 25% following the strong earnings report.

Bitcoin was trading around $87,000 after reaching new record highs around $90,000 overnight. The cryptocurrency has gained nearly 25% in the past week on optimism that the Trump White House and a supportive Congress can implement policies that support the asset class. Crypto-related stocks soared on Monday, including Coinbase (MONEY) and MARA Holdings (MARA), were giving back some of those gains this morning.

Gold futures were little changed at around $2,620 per ounce. The precious metal, which hit an all-time high above $2,800 early last week, has lost value recently as the U.S. dollar has strengthened since the election.

The yield on the 10-year Treasury note, which correlates with expectations about where interest rates will go, rose to 4.37% this morning from the previous close of 4.31%.

The economic data calendar is light today but will pick up in the coming days, with particular focus on Wednesday’s CPI inflation reading and Friday’s retail sales report. Investors are watching the data closely for indications that the economy remains on solid footing, as well as information that could influence the Fed’s futures decisions on interest rates.