US stock market: the winners and losers one week after the election

Last week’s US election spurred big moves in the US stock market, with some global indexes making record highs. Here’s how key stocks were affected.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Bronze bull and bear figurines

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Since last week’s election, the US stock market has experienced a frenzy of activity, with both the S&P 500 and Dow Jones Industrial Index (DJI) reaching new highs.

The S&P 500 had its best week in a year, crossing the key 6,000-point mark for the first time in history. The DJI was right behind it, breaching 44,000 points for another historic first.

Sectors that did particularly well include financials, energy and industrials. On the flip side, consumer staples, utilities and property stocks suffered.

To add to the excitement, the Federal Reserve initiated another quarter-point interest rate cut last Thursday. The benchmark rate’s now down to around 4.625%. It’s now near the same level it was in December 2007, incidentally around the same time the last global financial crisis began.

Stock market winners and losers

When the market closed on Friday, the three S&P 500 stocks leading the charge that day were Motorola Solutions, up 7.37%, Tesla, up 8.19% and Fortinet (NASDAQ: FTNT), up 9.99%.

The worst-performing stocks on Friday were semiconductor giant Super Micro Computer, software firm ANSYS and private healthcare company Centene.

With Elon Musk’s vocal support of Trump, it’s no surprise Tesla enjoyed a big boost following the election result. The stock’s now up 24% since the Republican candidate’s win was announced early Wednesday morning.

Trump’s proposed tariffs on foreign imports is likely a key driver of this growth, since low-cost Chinese electric vehicles (EVs) threaten Tesla’s market dominance in the US. 

There’s even been talk of Musk taking a role in the new administration.

Eye-catching Fortinet

Created with Highcharts 11.4.3Fortinet PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

The outlying stock that caught my attention last week was cybersecurity company Fortinet, one of my own holdings. The company designs and manufactures firewalls, gateways and endpoint security solutions for both large enterprises and smaller businesses. These provide a high level of protection against cyber threats such as malware, ransomware, and phishing attacks.

Fortinet’s big jump last week was helped by strong third-quarter financials released on 7 November. It recorded impressive results, with a gross margin of 83.2% and an operating margin of 36.1%.

Revenue grew 13% year on year, reaching $1.51bn, driven largely by a 19% rise in service revenue. Free cash flow came in at $572m.

The company also expanded its share repurchase programme by $1bn, leaving $2.03bn authorised for future share buybacks. Guidance for the 2024 full year has now been raised to between $5.86bn and $5.92bn.

However, Fortinet also provided a cautious outlook on several large deals that will mature at the end of Q4. This could suppress earnings. In addition, it noted tough competition from large vendors that are delivering discounted bundles which could threaten Fortinet’s pricing model.

Tariffs on imports may also affect the company, although this would depend on the specific goods targeted and its global supply chain. An increase in the cost of foreign electronic components could force it to push up prices, reducing its competitive edge. Conversely, a reduction in cheaper solutions from foreign competitors could improve its market share locally.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Mark Hartley has positions in Fortinet and Super Micro Computer. The Motley Fool UK has recommended Fortinet and Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

artificial intelligence investing algorithms
Investing Articles

Up 272% in just a year, is Palantir stock just getting started?

This writer recognises that Palantir has grown its business very well -- but does the stock price offer him an…

Read more »

Runner standing at the starting point with 2025 year for starting in new year 2025 to achieve business planing and success concept.
Investing Articles

Up 50%? The Aston Martin share price forecast is mind-blowing! 

If analysts are right, the Aston Aston Martin share price could absolutely rocket in the year ahead. Harvey Jones says…

Read more »

Investing Articles

As the S&P 500 drops, here are 2 Stocks and Shares ISA holdings I’m watching

Our writer has different views on how President Trump's tariffs might affect these two US holdings in his Stocks and…

Read more »

Surprised Black girl holding teddy bear toy on Christmas
Investing Articles

£10,000 invested in Tesla stock at Christmas is now worth…

Tesla stock has been one of best-performing investments of the past decade. But things haven't gone to plan for investors…

Read more »

Investing Articles

Up 279% in 5 years, could Meta stock keep soaring?

Meta stock has more than tripled in five years. This writer sees lots to like about the business but also…

Read more »

Pink 3D image of the numbers '2025' growing in size
Investing Articles

25% total return in a year? Is now the perfect time to buy BP shares?

BP shares are on the front line of today's global economic and political uncertainty but analysts think they can still…

Read more »

Affectionate Asian senior mother and daughter using smartphone together at home, smiling joyfully
Investing Articles

With Cash ISA changes coming, could now be the time to consider buying shares?

Changes to the Cash ISA could lead to greater investment in the stock market. This could be a good thing…

Read more »

Investing Articles

These FTSE 100 dividend shares just got cheaper, thanks to President Trump!

Investors buying dividend shares can lock in bigger long-term yields when share prices take a tumble. These two just did…

Read more »