The S&P 500 briefly surpassed the 6,000 mark and closed with its biggest weekly percentage gain in a year, while the Dow rose above 44,000 for the first time as Donald Trump’s election victory and a potential Republican majority in Congress. The victory fueled expectations of favorable trade policies.
Shares were widely expected to get support this week too Interest rate cut by 25 basis points by the Federal Reserve on Thursday.
The Dow Jones Industrial Average climbed 259.65 points, or 0.6%, to close at an all-time high of 43,988.99, Record of 43,729.93 on Wednesday,
The S&P 500 rose 0.4% to close at a record 5,995.54 – its 50th on the year – and the Nasdaq rose less than 1%. The S&P 500 and Nasdaq posted gains for the fourth consecutive session.
The S&P 500 and Dow Industrials posted their best weekly percentage jumps since early November 2023, and the Nasdaq posted its best week in two months and second-best week of 2024.
Investors were also keeping an eye on a possible “red sweep” as Republicans look set to maintain their narrow lead in the House of Representatives after winning control of the Senate. This will make it easier for Trump to implement his legislative plans.
Hopes of lower corporate taxes and deregulation under Trump have helped push the benchmark S&P index and the Dow to intraday record highs for three straight sessions.
“It is a psychologically significant number but with all the developments this week, it is just that. It’s just the numbers,” said Mike Dixon, head of research and quantitative strategies at Horizon Investments in Charlotte, NC.
“There are a lot of things, a lot of good news for the market this week, as prices show, it’s all more important than whether we’re to the right or left of that 6,000 number when the close comes Or not.”
But benchmark 10-year U.S. Treasury note yields remained near a four-month high, and markets have tempered expectations for the pace of Fed rate cuts in 2025 as concerns remain over the incoming administration’s proposed tariffs that could stoke inflation. There is a possibility of increasing again.
The University of Michigan’s Consumer Sentiment Index shows that US consumer sentiment reached a seven-month high in early November, with households’ expectations for the future the highest in more than three years due to a promising outlook among Republicans. Gone.
Shares of Airbnb fell more than 8% after the homestay company missed third-quarter profit estimates, while social media company Pinterest dropped 14% after a disappointing revenue forecast.
US listings of Chinese companies declined as the government’s latest fiscal support measures once again failed to impress investors. JD.com and Alibaba both fell at least 6%.
