The Dow Jones Industrial Average closed the day up 64 points to hit a new record Monday as shares of a "SPAC" linked to former President Donald Trump declined. File Photo by John Angelillo/UPI | License Photo
Oct. 25 (UPI) -- The Dow Jones Industrial Average and S&P 500 hit record highs on Monday, while shares of a Trump-linked company dropped after skyrocketing at the end of last week.
The blue-chip Dow closed the day up 64.13 points, or 0.18%, while the broad S&P 500 gained 0.47% and the tech-heavy Nasdaq Composite closed the day up 0.9%.
Shares of Digital World Acquisition Corp, a special-purpose acquisition company tied to Donald Trump, fell 10.98% on Monday after reports it would merge with a media and social networking company the former president plans to launch.
The decline marked a reversal as its shares had skyrocketed 845% from $9.96 per share to $94.20 in just two days.
Tesla stock shot upward 12.66% after the electric carmaker's market capitalization surpassed $1 trillion for the first time, joining a small group of U.S. companies including Amazon, Apple, Microsoft, Alphabet and Facebook in achieving the milestone.
Shares were boosted by rental company Hertz announcing it had ordered 100,000 Tesla vehicles to be delivered by 2022 as it aims to "offer the largest [electric vehicle] rental fleet in North America and one of the largest in the world."
Facebook stock rose 1.26% ahead of releasing its earnings after falling earlier in the day and gained nearly 3% in after-hours trading after it reported better-than-expected earnings after the bell.
The company also reported 1.93 billion daily active users, meeting analysts' expectations, and 2.91 billion monthly active users, falling just short of predictions.
Alphabet, Microsoft, Amazon and Apple are also set to report earnings later this week after all four tech giants traded in the negative on Monday.
Of the 117 S&P 500 companies that have reported earnings so far, 84% have surpassed expectations as companies in the index are forecast to grow profit by about 35% in third quarter, according to Refinitiv.
Energy stocks provided a boost to the market as West Texas Intermediate crude features rose above $85 per barrel, with Chevron rising 0.93% and Exxon Mobil gaining 1.95%.
Lifestyle brand Allbirds also set the terms for its initial public offering Monday, planning to offer 19.2 million shares at $12 to $14 each.
The company would raise $268.8 million at the top end of the range at a valuation of more than $2 billion.