The U.S. Stock Market & Bitcoin Are Breaking Out

The U.S. stock market and Bitcoin have seen significant gains following Donald Trump's presidential election win, and now both appear poised for a Santa Claus rally.

Though I am primarily a precious metals investor and analyst, I closely monitor other markets—including commodities, stocks, bonds, currencies, and cryptocurrencies—because they influence the precious metals market. Gold and silver don’t exist in isolation, and it’s essential for all precious metals investors to stay informed about broader market movements. Occasionally, I identify key opportunities in these markets and take advantage of them as a trader. Today, I want to share insights on a significant breakout in U.S. stocks and Bitcoin and discuss why they appear positioned for a Santa Claus rally into the end of the year.

Following Trump’s decisive victory, the S&P 500—the benchmark index for large-cap U.S. stocks—surged past its 5,900-6,000 resistance zone on strong volume, issuing a bullish breakout signal. Investors view Trump as pro-business and supportive of deregulation, fueling positive sentiment in the stock market. On Wednesday alone, U.S. equity funds saw an impressive $20 billion inflow. This bullish breakout is valid as long as the S&P 500 remains above the 5,900-6,000 range, increasing the likelihood of a “Santa Claus rally” into the end of the year. Moreover, the final two months are historically the stock market's most bullish season, further increasing the probability for solid gains.