CNBC Daily Open: Better to stay prudent than bask in the postelection afterglow

Record closing levels
U.S. markets traded higher Monday. The S&P 500 closed supra 6,000 for the archetypal clip and the Dow Jones Industrial Average deed a caller closing precocious supra 44,000. The pan-European Stoxx 600 index jumped 1.13%. The U.K. authorities sold much of its involvement successful NatWest. That "vote of confidence," arsenic an expert enactment it, pushed up U.K. slope shares.

Frenzy successful crypto world
Bitcoin broke different grounds Monday, rising 12.1% to $88,684.00, according to Coin Metrics. It's truthful overmuch successful request that the iShares Bitcoin Trust, a bitcoin ETF, has surpassed the iShares Gold Trust, successful presumption of assets managed. Separately, the property of crypto speech FTX sued Binance and its erstwhile CEO, Changpeng Zhao, implicit a "fraudulent" stock deal.

'Most pro-stock marketplace president'
President-elect Donald Trump is the "most pro-stock marketplace president" the U.S. has had successful its history, Jeremy Siegel, concern prof astatine the Wharton School of the University of Pennsylvania, told CNBC. Trump measures his success by the show of the banal market, truthful it's "unlikely he's going to instrumentality policies" that volition beryllium atrocious for it, Siegel said.

Getting astir Trump's tariffs
European countries are scrambling to enactment retired the champion response to Trump's pledge of a cosmopolitan tariff of 10% to 20% connected each U.S. imports. Countermeasures could see deeper integration into determination markets and instauration of tariffs, said analysts, adding that boosting American imports to unafraid an objection from tariffs could besides beryllium an option.

[PRO] Overheating rally?
After the U.S. statesmanlike election, the S&P 500 and Dow Jones Industrial Average had their champion week successful astir a year. Some deliberation the rally is getting up of itself, writes CNBC Pro's Fred Imbert. A Wall Street expert pointed retired that, according to history, 1 ostensibly bullish motion really portends retreats successful the adjacent term.

The banal marketplace is riding precocious connected Trump's predetermination victory.  

The S&P 500 ticked up 0.1% to adjacent astatine 6,001.35, the archetypal clip it's ended the time supra 6,000. Likewise, the Dow Jones Industrial Average, aft adding 0.69%, closed astatine a grounds of 44,293.69, its archetypal adjacent supra 44,000.

While Tesla's rally sees no signs of stopping — shares popped astir 9% yesterday — different tech giants specified arsenic Apple and Microsoft person seen shares slip.

That caused the Nasdaq Composite to underperform the S&P and Dow. The tech-heavy scale eked retired a 0.06% gain.

The postelection banal rally, however, is apt to enactment beardown for now.

"The Republicans' decisive triumph has ignited 'animal spirits,' contempt already lofty expectations," wrote Morgan Stanley Wealth Management's Chief Investment Officer Lisa Shalett successful a Monday note.

But whether the bully vibes are the steadfast flood of endorphins aft a run, oregon the alcoholic buzz that volition pb to a hangover, is inactive an unfastened question.

Amid specified uncertainty, investors "could good payment from practicing patience and avoiding jumping to conclusions arsenic to however the predetermination result volition impact the markets," wrote John Stoltzfus, main concern strategist astatine Oppenheimer Asset Management.

"We favour wide diversification tuned much to cyclical and secular trends that stay successful spot for now," helium added.

Likewise, Shalett advocates a "balanced stance" for investors, and cautions they debar jumping to conclusions connected whether the surge successful stocks is signaling stronger economical growth.

So, it remains to beryllium seen if the rally volition fizzle retired erstwhile the archetypal predetermination euphoria wears off, oregon the marketplace frenzy portends a longer-term phenomenon.

It's hard to spell incorrect pursuing the age-old rules for investing successful the banal market: Be successful it for the agelong term, diversify and look astatine fundamentals similar net and valuation.

— CNBC's Brian Evans and Alex Harring contributed to this report.