The stock market soared to new heights on Friday, capping off a remarkable week following Donald Trump’s election victory. The Dow Jones Industrial Average climbed 259.65 points, or 0.59%, to close at 43,988.99, briefly surpassing the 44,000 mark for the first time. The S&P 500 also reached a milestone, gaining 0.38% to close at 5,995.54 after trading above 6,000.
The Nasdaq Composite lagged slightly, rising just 0.09% to end at 19,286.78, but still achieved an intraday record. This rally marked the best week for the Dow and S&P 500 since November 2023, with gains of 4.61% and 4.66% respectively. Meanwhile, the Nasdaq outperformed, advancing 5.74%, and the small-cap Russell 2000 surged 8.57%.
Investors are optimistic about Trump’s domestic growth policies, particularly for small-cap stocks, which benefit from expectations of deregulation. However, concerns about the federal deficit and potential inflationary pressures due to increased tariffs remain.
Tesla shares rose significantly, gaining 8.2% as the company’s market cap exceeded $1 trillion. This comes amid CEO Elon Musk’s support for Trump. Similarly, Trump Media saw a 15% increase after the president-elect confirmed he would retain his shares.
Boosting market confidence, the Federal Reserve cut interest rates by a quarter percentage point. Fed Chair Jerome Powell expressed confidence in the economy, further propelling stocks.
Despite some Wall Street concerns over high valuations, the week’s performance has bolstered optimism for continued growth in the coming months. As Keith Lerner from Truist Wealth noted, “Sentiment’s getting a little bit stretched, but all in all, we still think you want to stick with that primary uptrend.”
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