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.

Should you invest £1,000 in Diageo right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Diageo made the list?

See the 6 stocks

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.

But there are other promising opportunities in the stock market right now. In fact, here are:

5 stocks for trying to build wealth after 50

The cost of living crisis shows no signs of slowing… the conflict in the Middle East and Ukraine shows no sign of resolution, while the global economy could be teetering on the brink of recession.

Whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times. Yet despite the stock market’s recent gains, we think many shares still trade at a discount to their true value.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. We believe these stocks could be a great fit for any well-diversified portfolio with the goal of building wealth in your 50’s.

Claim your free copy now

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

Investing Articles

Here’s the dividend forecast for Rolls-Royce shares as Trump rocks the markets

Rolls-Royce shares have joined in the volatility over the past week. However, with the direction being largely downwards, the dividend…

Read more »

Young Asian man drinking coffee at home and looking at his phone
Investing Articles

Dividend yields of up to 11%! Here are 3 UK passive income stocks to consider

Searching for ways to supercharge your passive income with UK dividend stocks? Here are three that have grabbed our writer's…

Read more »

Young Caucasian woman at the street withdrawing money at the ATM
Investing Articles

£10,000 invested in NatWest shares at the start of 2025 is now worth…

NatWest shares surged into 2025, but things have become a little more complicated in recent weeks. Dr James Fox explores.

Read more »

Investing For Beginners

Why the FTSE 250 could outperform the FTSE 100 for the rest of the year

Jon Smith explains why the FTSE 250 could do better than its big brother when factoring in domestic exposure and…

Read more »

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

Tariff fears send the Lloyds share price tumbling, but the dividend yield is climbing

Just when the Lloyds Banking Group share price had been rising steadily, along comes a global upheaval to knock it…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

Here’s how a stock market crash could help an investor retire years early

A stock market crash can be alarming -- but for the well-prepared investor, it can also be an exceptional opportunity…

Read more »

Investing Articles

1 key fact to remember in this stock market correction

This writer takes a look at a FTSE 100 investment trust that is catching his eye after the recent massive…

Read more »

Investing Articles

I was wrong about the Tesla stock price!

Tesla stock's been affected more than most by ‘Liberation Day’. But our writer has other concerns about Elon Musk’s company.

Read more »