Now is a good time to review the progress of “Trump Trade.” Stocks rose to new highs after Donald Trump was announced as the next U.S. president, with investors betting his vows to cut taxes and ease regulations would boost trading, stimulate the economy and support risk assets. The S&P 500 had its best weekly performance since November 2023 last week, hitting the 6,000 mark, while the 30-stock Dow Jones Industrial Average climbed above 44,000. But the post-election excitement among some early winners has begun to fade. Stocks seen as early beneficiaries, such as steelmakers and banks, are losing momentum, while others, such as Tesla, continue to rise. Just look at the names CNBC Pro found that are starting to lose their post-election mojo: Every “Trump trade” was up at least 5% the day after this year’s election, and it’s up 10% on Election Day every year — according to FactSet According to reports, Trump’s first election ended in 2016. But each stock has fallen at least 2% since last Wednesday, reflecting waning enthusiasm for stocks that fueled the post-election rally. Construction equipment maker Caterpillar’s gains are starting to fade. So far this week, its shares are almost flat this week. Steelmakers Steel Dynamics and Nucor were also down, with each down more than 3% on Tuesday alone. Some financial stocks, including JPMorgan Chase, regional bank Citizens Financial and insurance company Prudential, also slowed after initial gains (financials were the best-performing sector on Nov. 6, the day after the election). Morgan Stanley analyst Betsy Graseck said recently that a Trump presidency and a Republican-controlled Senate could boost companies such as Wells Fargo and Bank of America The development of large banks. Momentum is also slowing at semiconductor maker Micron Technology and cloud networking company Arista Networks, among several other technology companies. Others thought to benefit are continuing to surge. The stocks also rose 5% the day after the election and were up 10% from Election Day to year-end for the first time in 2016, but they are moving higher since the initial reaction after the election last week, rising at least 1%. Take a look at this group of stocks: Tesla is the favorite winner in this group, with shares up about 21% since Nov. 6, driven by Chief Executive Elon Musk’s close relationship with Trump. %. Tesla’s stock price has risen more than 36% this year. After several difficulties with electric vehicles, Tesla has become one of the most oversold companies on Wall Street at the beginning of the year. The stock price has improved. Deutsche Bank analyst Edison Yu said on Tuesday that if Vice President-elect J.D. Vance “takes power” after Trump, Musk may have a closer ally during the 12-year presidential term, which will benefit Tesla in the future. Automobiles, robo-taxis, and automotive endeavors. In addition to Tesla, energy stocks Coterra Energy and Baker Hughes are also trading higher, with the latter up more than 15% this month. While some regional banks suffered post-election declines, many of Wall Street’s biggest lenders — including Bank of America, Morgan Stanley, Goldman Sachs and Citigroup — continue to benefit from Trump’s trade momentum.
