Market Surge Sets New Records as Dow and S&P 500 Celebrate Best Week of 2024 Following Trump Election Win.
The stock market hit another historic high this Friday as the Dow Jones Industrial Average and the S&P 500 rounded out their best week in nearly a year after Donald Trump’s election victory.
Buoyed by optimism around anticipated pro-business policies, the Dow Jones rose 259.65 points, or 0.59%, closing at a record 43,988.99. At one point, it even traded above 44,000—a milestone for the blue-chip index. The S&P 500 also saw significant gains, closing at 5,995.54 after briefly topping the 6,000 mark. Meanwhile, the Nasdaq Composite, though less robust, set an intraday record, ending at 19,286.78, up 0.09% for the day.
This momentum follows a week of exceptional performance across major indexes. The S&P 500 gained 4.66%, while the Dow climbed 4.61%, marking their strongest weekly performances since November 2023. The Nasdaq Composite outperformed with a 5.74% jump, while the small-cap-focused Russell 2000 surged 8.57%. Market analysts attribute this rally to investor confidence in Trump’s pro-growth policies, particularly as they anticipate reduced regulations and the potential for tax cuts under his administration. “Equities are eager to price in Trump’s domestic growth policies (via small-caps) and hopes for easier regulation relative to the Biden administration,” said Barclays strategist Venu Krishna.
Among top-performing stocks, Tesla surged 8.2%, placing the automaker’s market cap over the $1 trillion threshold. Other Trump-aligned stocks also flourished; Axon Enterprises jumped 28% on an upbeat revenue outlook, and Trump Media rallied 15% following Trump’s announcement to retain his shares.
In another confidence-boosting move, the Federal Reserve cut interest rates by a quarter percentage point this Thursday, with Chair Jerome Powell expressing a positive economic outlook. However, some market strategists cautioned about the potential risks of overvaluation and possible near-term corrections, despite the week’s optimistic tone.
As investor sentiment remains buoyed by this historic rally, many are looking ahead with guarded optimism. This robust market performance raises hopes for continued growth, though the potential for corrections remains on the radar.
