Following Donald Trump's recent election victory, US stocks closed at record highs last Friday, with the S&P 500, Dow Jones Industrial Average, and Nasdaq each marking notable gains.
The S&P 500 climbed 0.38% to nearly 6,000 points, while the Dow Jones saw a 0.59% rise, reaching above 44,000 points before a slight dip at close.
These gains capped the best week of the year for both indices. The tech-heavy Nasdaq also performed strongly, passing 19,000 points mid-week and ending with an increase of 0.09% on Friday.
Investors responded positively to the election results, with Trump's business-oriented policies expected to favour deregulation and tax cuts, boosting the corporate sector.
Small-cap stocks and firms likely to benefit from deregulation and a “business-friendly” agenda, such as Trump Media & Technology Group and GEO Group, saw substantial surges.
Furthermore, Tesla's stock jumped over 30% as CEO Elon Musk, a known Trump supporter, may gain a prominent advisory role in the administration.
Bitcoin also reached unprecedented highs, with the prospect of a less regulated environment under Trump anticipated to support cryptocurrencies broadly.
The rally highlighted investor enthusiasm for anticipated policy stability and economic shifts, though some analysts, such as those from Wells Fargo, caution that such volatility may settle as the market absorbs the new administration's actual policy impacts over time.
With rising Treasury yields and a stronger dollar, markets appear poised for further dynamic shifts as inflation expectations adjust to the projected fiscal and regulatory changes.
Source:
CNN
