CNBC Daily Open: From postelection rally to preelection levels

Markets ended week successful the red 
U.S. markets slumped connected Friday and ended the week lower. The S&P 500 fell 1.32%, the Dow Jones Industrial Average slipped 0.7% and the Nasdaq Composite tumbled 2.24%. Europe's Stoxx 600 mislaid 0.77%, its fourth consecutive losing week. Separately, the U.K. system grew 0.1% successful the 3rd quarter, missing the 0.2% people expected by economists.  

Caught successful the crossfire 
China whitethorn beryllium the people of U.S. President-elect Donald Trump's hawkish commercialized policies, but U.S. companies could endure successful the crossfire. If Trump does instrumentality his tariffs connected China, the Chinese authorities could retaliate by introducing its ain tariffs, diversifying its imports distant from the U.S and expanding scrutiny of U.S. firms operating successful China. 

Last authoritative Biden-Xi meeting 
U.S. President Joe Biden met his Chinese counterpart Xi Jinping connected Saturday astatine the sidelines of the Asia-Pacific Economic Cooperation summit. Biden reflected connected his narration with Xi crossed decades, portion Xi seemed much focused connected Trump's presidency, saying: "China is acceptable to enactment with a caller U.S. medication to support communication, grow practice and negociate differences." 

To infinity 
Pure-play abstraction companies person seen their shares soar implicit the past week. For example, shares of Rocket Lab, an aerospace manufacturer, popped 41% connected a play basis. While that was ignited by affirmative quality from the company's net report, analysts accidental the "Trump-Elon" trade is besides down the gravity-defying moves of abstraction stocks. 

[PRO] Nvidia sets the code this week 
Markets had a chaotic fewer weeks, during which investors digested the U.S. statesmanlike predetermination results, the Federal Reserve cutting rates, ostentation readings and Fed Chair Jerome Powell's hawkish comments. This week, each eyes volition beryllium trained connected 1 cardinal event: Nvidia's earnings, coming retired Wednesday. 

Trump's decisive triumph successful the statesmanlike elections, arsenic good arsenic his purportedly market-friendly policies, drove markets to caller highs.  

Last Monday, the S&P closed supra 6,000 and the Dow finished the time supra 44,000 for the archetypal time. The alleged "Trump trade" — shares of banks, small-cap companies and energy, for illustration — were down overmuch of the indexes' gains.  

As anyone who has overeaten astatine a feast knows, however, there's a constituent erstwhile restitution passes into satiation into surfeit.  

It was lone the commencement of the week, but small did we cognize we were opening astatine the peak.  

When markets closed connected Friday, the S&P mislaid 2.1% and the Dow had fallen 1.2% for the week — some ending the week beneath their milestones. The Nasdaq slid 3.2% connected a play basis. 

A slump successful pharmaceutical stocks dragged down the S&P and Dow. It was triggered by Trump announcing helium was readying to nominate Robert F. Kennedy Jr., who has expressed unorthodox beliefs connected health, to pb the U.S. Department of Health and Human Services. 

This illustrates however investors indispensable delicately navigate Trump's policies, which often contiguous themselves arsenic double-edged swords.  

For instance, Trump's projected tariff and taxation cuts volition buoy up tiny caps and grow firm profits but mightiness besides support ostentation blistery and involvement rates precocious – which were the worries weighing connected markets past week. 

"In the adjacent word we should expect immoderate micro volatility, peculiarly astir imaginable argumentation shifts nether a caller administration," said Kristy Akullian, caput of iShares concern strategy, Americas, astatine BlackRock. 

That said, Akullian added that BlackRock does "expect the U.S. equity marketplace to proceed to determination higher, but don't expect that emergence to hap successful a consecutive line." 

After surfeit comes digestion and past hunger. And the process starts again. 

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