U.S. stocks experienced a decline on November 12, 2024, as momentum from the 'Trump trade' diminished following Donald Trump's presidential victory.
The S&P 500 fell 0.3%, closing at 5,983.99, while the Dow Jones Industrial Average decreased by 0.9% to 43,910.98. The Nasdaq composite slipped 0.1%, settling at 19,281.40. Smaller U.S. stocks also faced a downturn, with the Russell 2000 index dropping 1.8% to 2,391.85.
This shift followed a period of optimism that had driven stocks higher on expectations of economic growth and inflation linked to Trump's policies. Notably, Tesla, led by Musk, a Trump ally, saw its first decline since before Election Day.
Yields in the bond market rose, further pressuring equities. The yield on the 10-year Treasury increased to 4.43%, up from 4.31% on the previous Friday, marking a significant change in the bond market.
Despite the overall market decline, some companies reported stronger-than-expected profits. Live Nation Entertainment's stock rose 4.7% as concert spending increased, while Tyson Foods surged 7.7% after exceeding profit forecasts and announcing a dividend increase. Home Depot saw a minor pullback of 0.3% despite beating profit expectations.
Year-to-date, the S&P 500 has risen 25.5%, with the Dow up 16.5% and the Nasdaq increasing by 28.4%.