A trader wears a hat to support Republican Donald Trump at the New York Stock Exchange on November 6, 2024.
Andrew Kelly | Reuters
The stock market soared to another round of records on Friday, as the Dow Jones and S&P 500 concluded their best week in a year after Donald Trump won the election.
the Dow Jones Industrial Average The stock rose 259.65 points, or 0.59%, to close at 43,988.99 points. Blue chip stocks average traded above 44,000 for the first time ever during the session. the Standard & Poor's 500 It rose 0.38% to close at 5,995.54, after briefly trading above 6,000 points. Heavy technology Nasdaq Composite It lagged, rising just 0.09% to 19,286.78, but hitting a record intraday high as well.
The three averages ended the week at record closing levels.
The Dow Jones is up more than 16% year to date.
It's been a strong week across the board for stocks, due in large part to Wednesday's big rally following Trump's win. The S&P 500 index ended the week with a rise of 4.66%, and the Dow Jones index rose by 4.61%. Both indexes had their best week since November 2023. The Nasdaq even outperformed those moves, advancing 5.74%, while the benchmark Russell 2000 small-cap index rose 8.57%.
“Stocks are eager to price in Trump's domestic growth policies (through small caps) and are hoping for easier regulation compared to the Biden administration,” Venu Krishna, a strategist at Barclays, said in a note to clients.
“It remains to be seen whether these moves are sustainable; momentum is extending lofty gains as winners continue to win, and the sharp post-Election Day moves have pushed key metrics closer (or in the case of (Russell 2000)) in the technical sense,” Krishna added. Overbought.
Investors generally view the Republican-controlled government as more favorable to expectations of deregulation, the potential for more mergers and acquisitions and proposed tax cuts. However, concerns about large federal deficits and rising tariffs have also raised fears of higher inflation.
Some Trump-related stocks performed well again on Friday. Teslawhose CEO Elon Musk campaigned with the president-elect, rose 8.2% and was on track for its fourth straight positive session. The automaker's market capitalization has crossed the $1 trillion mark. Law Enforcement Technology Stock Exxon companies It jumped more than 28% after the company raised its full-year revenue guidance. Trump media The company's shares jumped 15% after the president-elect said he had no intention of selling his shares in the social media company.
Stocks also got a boost from the Federal Reserve this week, as the central bank cut interest rates by a quarter of a percentage point on Thursday. Federal Reserve Chairman Jerome Powell indicated he “feels good” about the economy during a news conference following the change.
While some on Wall Street are concerned about stock market valuations, the strength of this week's move has bolstered confidence that there is still room to move higher in the final months of the year.
“When everything seems to be going well, we wonder: What's going to hit us?” Keith Lerner, co-chief investment officer at Truist Wealth, said on CNBC's “Closing Bell” on Friday.
He continued: “There's probably something to the left side. Sentiment is picking up a little bit, and maybe some volatility after that rough number. But overall, we still think you want to stick with that fundamental uptrend.”
