The Direxion Daily S&P 500 Bear 3X ETF (SPXS) closed down 1.84% on November 26, 2024, as the S&P 500 index reached new record highs. The S&P 500 climbed 0.57% to close at 6,021.63, buoyed by investor optimism despite President-elect Donald Trump's announcement of new tariffs on Mexico, Canada, and China. Market participants appeared to dismiss the tariff threats as mere negotiating tactics, with the belief that they may not be fully implemented. This sentiment was echoed by Jamie Cox of Harris Financial, who noted that markets have become more comfortable with the rhetoric being stronger than the actual policy implementation.
The S&P 500's rise was also supported by the release of Federal Reserve meeting minutes, which indicated a gradual approach to future interest rate cuts. The minutes suggested that if economic data aligns with expectations, the Fed would move towards a more neutral policy stance over time. Additionally, the announcement of Trump's Treasury secretary pick, Scott Bessent, contributed to the market's positive momentum, reinforcing the belief in a continued postelection rally. Despite the overall market gains, some sectors, such as automakers and companies with significant exposure to Mexican imports, faced pressure due to the potential impact of tariffs.