The Dow slumps 380 points as the market's post-election Trump rally loses steam

Investors are waiting for a key inflation reading this week, after Donald Trump's election win helped power stock indexes to record highs

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Image for article titled The Dow slumps 380 points as the market's post-election Trump rally loses steam
Photo: DAVID L. NELSON (Getty Images)

After hitting record highs following Trump’s victory, the Dow and S&P 500 hit the brakes on Tuesday, a day before the release of the Consumer Price Index (CPI) and core CPI data.

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By the end of the day, the Dow Jones Industrial Average fell 380 points, or 0.86%. Meanwhile, the S&P 500 shed 0.29%, and the tech-heavy Nasdaq also dropped 0.09%.

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Among tech stocks, Tesla (TSLA-2.21%) and Nvidia (NVDA-5.05%) rose over 3% and 2%, respectively, while Micron Technology (MU+0.74%) and Super Micro Computer (SMCI-0.78%) declined by 5% and 4%.

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Bitcoin reached almost $90,000 and then dropped

Bitcoin extended its rally after Trump’s win, nearing $90,000 between Monday night and early Tuesday. According to crypto tracking site Coingecko, the leading cryptocurrency reached an all-time high of $89,864, bringing its market capitalization to $1.72 trillion — edging out silver’s $1.71 trillion but still far behind gold’s estimated $17.52 trillion. By Tuesday morning, however, Bitcoin had dropped back to around $86,000.

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Important earnings to watch

A number of major players released their results before the opening bell, including Home Depot (HD-1.35%), the leading home improvement retailer, and AstraZeneca (AZN+0.66%), the multinational pharmaceutical company.

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Spotify (SPOT+1.77%), the music streaming giant, will report its earnings after the market close, along with MARA Holdings (MARA+1.26%), a key player in the cryptocurrency mining industry.

— Rocio Fabbro contributed to this article