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Tesla surges beyond $1 trillion market value

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Crypto stocks gain as bitcoin rallies

(Updates with close of trading)

By Lisa Pauline Mattackal and Noel Randewich

Nov 11 (Reuters) -

The Dow Jones Industrial Average notched a record high close

on Monday, lifted by bank stocks that benefited from optimism

about Republican President-elect Donald Trump's expected fiscal

policies.

Tesla's stock market value surged to $1.1 trillion,

fueled by bets the automaker will benefit from CEO Elon Musk's

close ties to Trump. Several other stocks also added to gains

they have made since Trump won the election, as traders expect

them to benefit from his return to the White House.

The S&P 500 financial index rallied, with banks

helping lift the Dow to its highest ever.

The small-cap Russell 2000 jumped to its highest

since November 2021. Smaller companies are viewed as potential

beneficiaries from Trump's proposed tax cuts and expected looser

regulations.

Microsoft ( MSFT ), Amazon ( AMZN ) and Meta Platforms ( META )

each dipped.

The S&P 500 has rallied almost 4% since Trump's victory last

Tuesday, while the Nasdaq has gained almost 5%.

The S&P 500 information technology index and the

PHLX chip index both retreated, with AI heavyweight

Nvidia ( NVDA ) giving back recent gains.

"It's been a wild four days since the election and the

market is taking a breath," said Jake Dollarhide, chief

executive officer of Longbow Asset Management in Tulsa,

Oklahoma. "But the trend is moving higher. I would not be

surprised if the Trump rally bleeds into a Santa Claus rally."

According to preliminary data, the S&P 500

gained 8.04 points, or 0.13%, to end at 6,003.58 points,

while the Nasdaq Composite gained 16.07 points, or

0.08%, to 19,302.85. The Dow Jones Industrial Average

rose 316.26 points, or 0.72%, to 44,305.25.

Crypto stocks rallied as bitcoin soared to a record

$87,000. Coinbase Global ( COIN ) jumped and bitcoin miners MARA

Holdings ( MARA ) and Riot Platforms ( RIOT ) also rallied.

Investors are watching consumer price inflation data,

due Wednesday, and a raft of other key data this week for

signals on the economy and monetary policy outlook.

The U.S. Federal Reserve cut interest rates by 25 basis

points last week, and interest rate futures imply traders see a

65% chance of another 25 basis point cut at the central bank's

December meeting, according to CME FedWatch.

"With policymakers already so cautious about the risk of

renewed price pressures, particularly amid the continued

strength of the U.S. economy, the Fed will need to tread a

cautious path," warned Seema Shah, chief global strategist at

Principal Asset Management.