According to Bloomberg, enthusiasm for riskier assets cooled on Tuesday as investors awaited U.S. inflation data on Wednesday. Still, market watchers believe the current rally could continue.
Tesla has added about $250 billion in market value since Election Day, even though its shares slipped on Tuesday. Small-cap stocks are at risk because of their high debt loads, especially under Trump’s policies.
Goldman Sachs' basket of highly shorted stocks has risen 9.5% in the past five days and fell 3.4% on Tuesday. The options market showed that investors' bullish sentiment on the S&P 500 index has increased, with 36 million call options trading on Monday.