US Stock Markets Soar to Unprecedented Heights in Best Post-Election Week Since 2023
US stock markets have showcased their strongest performance since November 2023, with major indices recording remarkable gains in the aftermath of the decisive election results. The S&P 500 surged by 4.66% for the week, while the Dow Jones gained 4.61%. Notably, the Nasdaq outperformed with a 5.74% advance.
The Russell 2000 small-cap index spearheaded the rally with an exceptional 8.57% gain. This reflects investor optimism about Trump’s domestic growth policies and expectations for regulatory relief. Both the Dow and S&P 500 hit intraday record highs during Friday’s trading session, further extending the post-election momentum.
Financial services stocks experienced a significant boost, gaining 7.79% for the quarter on expectations of lighter government oversight. Technology stocks returned 5.61%, while communication services jumped 9.07%. The University of Michigan’s consumer sentiment gauge also reached its highest level since April at 73, signaling growing economic confidence.
Analysts attribute the broad-based rally to investor expectations for deregulation, potential tax cuts, and increased merger and acquisition activity under Republican control. The “Trump trade” has particularly benefited banks, with shares of Goldman Sachs, JPMorgan Chase, and Wells Fargo soaring on anticipations of reduced financial sector oversight.
Source: CNBC