Postelection euphoria takes a breather

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Postelection euphoria takes a breather

Employees work at the Tokyo Stock Exchange (TSE), operated by Japan Exchange Group Inc. (JPX), in Tokyo, Japan, on Thursday, Jan. 4, 2024.

Bloomberg | Bloomberg | Getty Images

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

U.S. and Asia markets slipU.S. markets retreated on Wednesday after a week of postelection enthusiasm. The S&P 500 dropped 0.29% and the Nasdaq Composite slipped 0.09%, snapping a five-day winning streak. The Dow Jones Industrial Average pulled back 0.86%. ****** markets also tracked the losses on Wall Street, with South Korea’s Kospi leading losses and falling over 2%. 

Bearish

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for oilOil prices could hit as low as $30 to $40 a barrel in the event that oil alliance OPEC+ unwinds its existing output cuts, said market watchers who are predicting a bearish year ahead for crude. At $40, the price would represent a drop of around 40% compared to current prices. Brent is currently trading at $72 a barrel, while U.S. WTI futures are around $68 per barrel.

Softbank-backed Swiggy makes stellar India debutShares of Indian food delivery giant Swiggy soared as much as 15% on their trading debut Wednesday after completing the country’s second-largest IPO this year. Swiggy, which is backed by SoftBank, raised 113.27 billion Indian rupees ($1.34 billion) in its IPO that closed Monday. The IPO was reportedly oversubscribed more than three times.

Bitcoin briefly touches $90,000Bitcoin touched the $90,000 mark on Tuesday, just two days after breaching the $80,000 mark. The cryptocurrency, however, later retreated from that high, last trading at $86,895.50 on Wednesday morning, according to Coin Metrics. Its price is expected by many investors to continue making fresh records on its way to $100,000 later this year.

3 stocks to buy following Trump winMorgan Stanley’s Aaron Dunn, portfolio manager at

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, identified three stocks he is ******** on following U.S. president elect’s Donald Trump’s election win, adding that markets now are seeing a “great deal of volatility” following the election result, and are repricing “what had been a 50/50 election.”

The bottom line

After Trump won the election, the S&P and Nasdaq recorded winning sessions for five consecutive days. That streak ended on Wednesday.  

While it’s ********** to say that the postelection rally has come to an end, it certainly has taken a pause. 

According to Siebert chief investment officer Mark Malek, this could be because stocks may have already gotten ahead of themselves even before Trump won a second term last week. 

Now that the market has removed the overhang of the election, some of the core economic headwinds that have lingered are coming back to the forefront, he added.   “What’s driving today’s trade is maybe a little bit of exhaustion,” Malek told CNBC. 

Postelection euphoria may soon give way to cold, hard, economic data. Investors are eagerly anticipating October inflation readings, out Wednesday.   According to a Reuters poll of economists, the consumer price index is expected to climb to 2.6%, its first rise in six months. However, core inflation is still expected to hold steady at 3.3%. 

— CNBC’s Brian Evans and Alex Harring contributed to this report.

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