Top 10 S&P 500 stock winners since Election Day
From CNBC: 2024-11-22 13:50:57
Many large U.S. companies have seen their stocks swell since the presidential election. The top 10 performing stocks in the S&P 500 index saw returns of 18% or more since Election Day, with companies like Axon Enterprise and Tesla gaining over 35%.
Investors should be cautious about buying individual stocks based on short-term boosts. Momentum is powerful, but experts warn that relying solely on short-term price moves as an investment strategy is risky. Understanding the driving factors behind stock movements is essential for sustainable investing.
Lofty stock returns were driven by expected policy stances from the Trump administration that benefit certain companies and industries. Deregulation and a softer view toward mergers and acquisitions are key themes boosting bullish sentiment. Companies like Warner Bros. Discovery and Disney+ owner The Walt Disney Co. may benefit from looser rules around consolidation.
Stock outperformance for some companies was tied to rosy quarterly earnings results and guidance reported around or after Election Day. Many businesses cited artificial intelligence as a growth driver, with companies like Palantir Technologies and Axon beating estimates. Some companies benefited from a combination of favorable policy changes and strong earnings.
Tesla received an “Elon Musk premium” following Trump’s victory, with the electric-vehicle maker’s stock soaring after the election. Musk, a top Trump backer, has additional tailwinds like the potential end of a $7,500 federal tax credit for EVs, which could hurt Tesla’s competitors. The company is also developing technology for driverless vehicles. 1. The CDC reports that COVID-19 cases are on the rise in 44 states, with hospitalizations increasing among unvaccinated individuals. The Delta variant is fueling the surge, prompting health officials to urge more people to get vaccinated to prevent further spread.
2. In economic news, the Federal Reserve announces plans to keep interest rates near zero until at least 2023. This decision comes as the central bank aims to support the ongoing economic recovery from the pandemic and ensure stability in financial markets.
3. NASA’s Perseverance rover successfully collects its first Mars rock sample, marking a significant milestone in the mission to study the Red Planet’s geology and potential for past life. The sample will be stored and eventually returned to Earth for further analysis.
4. The Tokyo Olympics come to a close with the United States leading the medal count, followed by China and Japan. Highlights include Simone Biles’ return to competition, record-breaking performances in swimming and track and field, and the resilience of athletes amid challenges posed by the pandemic.