While the S&P 500 index briefly topped the $6,000 mark and closed with its biggest weekly gain in over a year, business conditions were favorable due to Donald Trump’s election victory and the possibility of a Republican sweep of Congress. Expectations for policy increased, and the Dow Jones Industrial Average exceeded 44,000 for the first time.
Also supporting stocks this week was widespread expectations that the Federal Reserve would cut interest rates by 25 basis points on Thursday.
The Dow Jones Industrial Average rose 259.65 points, or 0.6%, to close at a record high of 43,988.99, surpassing Wednesday’s record of 43,729.93.
The S&P 500 rose 0.4% to close at 5,995.54, its 50th all-time high of the year, while the Nasdaq rose less than 1%. The S&P 500 and Nasdaq posted their fourth straight session of gains.
The S&P 500 and Dow Jones Industrial Average posted their best weekly gains since early November 2023, and the Nasdaq posted its highest gain in two months and second-best week in 2024.
Investors were also eyeing a possible “red sweep” as Republicans are expected to maintain a narrow lead in the House of Representatives after winning the Senate majority. That would make enacting Trump’s legislative plan easier.
The benchmark S&P index and Dow Jones Industrial Average hit new intraday highs for three consecutive sessions on the back of expectations for corporate tax cuts and deregulation under the Trump administration.
“It’s a psychologically important number, but given everything that’s unfolded this week, it’s just that. It’s just a number,” said Mike Dixon, head of research and quantitative strategy at Horizon Investments in Charlotte, North Carolina. spoke.
“So much has happened this week and there has been a lot of good news for the market as you can see from the prices. It exceeds that.”
However, with the benchmark 10-year Treasury yield hovering near a four-month high and concerns lingering over the incoming administration’s proposed tariffs that are likely to reignite inflation, the market is looking ahead to the 2025 Fed policy. This has dampened expectations for the pace of interest rate cuts.
U.S. consumer sentiment rose to a seven-month high in early November, according to the University of Michigan’s Consumer Sentiment Index, a measure of households’ expectations for the future, led by a brighter outlook among Republicans. has risen to its highest level in over three years.
Shares in homestay company Airbnb fell more than 8% after missing third-quarter profit estimates, and social media company Pinterest fell 14% after disappointing earnings forecasts.
U.S. listings of Chinese companies stalled after the government’s latest fiscal support package once again failed to impress investors. Jingdong Market and Alibaba both fell by at least 6%.
