The S&P 500 and Dow climbed higher this afternoon, positioning them for their best week of the year, driven by Trump’s decisive election win and expectations of an interest rate cut to support the economy.
Hopes for lower corporate taxes and deregulation under Republican leadership propelled both the S&P 500 and Dow to record highs for the third consecutive trading session.
The S&P 500 approached the 6,000 level as market optimism was bolstered by the Federal Reserve’s interest rate cut announced yesterday evening.
Fed Chair Jerome Powell reassured investors, stating that the election outcome would not impact monetary policy in the short term. This eased concerns about potential inflation and rising public debt from Trump’s possible spending plans.
The Dow and S&P 500 are on track for their strongest week since last November, while the Nasdaq is set for its best performance in two months and the second-best week of 2024.
Clark Geranen, chief market strategist at CalBay Investments, commented:
“This week’s surge in stocks reflects the market’s preference for certainty, which has been restored following the clarity of the election results.”
He added, “The S&P 500 nearing the 6,000 mark could attract even more investors, as significant capital remains parked in money market funds and bonds.”
