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US stocks hit record highs as investors cheered Trump’s election victory and market gains.
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The Fed lowered interest rates, Nvidia replaced Intel in the Dow Jones and the S&P 500 briefly passed the 6,000 point mark.
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Investors will turn their attention to October’s inflation figures next week.
US stocks soared to record highs on Friday, capping a monumental week for markets as investors cheered Donald Trump’s election victory.
It was a big week for the market and the momentum continued even after the Dow Jones Industrial Average gained 1,500 points on Wednesday. The S&P 500 briefly crossed the 6,000 mark for the first time, while the Dow reached the 44,000 mark during the day, also a first as Nvidia replaced Intel in the index.
On Thursday, traders had more reason to cheer when the Federal Reserve cut rates again, this time by 25 basis points. Fed Chairman Jerome Powell said the central bank felt good about the economy with more easing on the table, even as bond markets revalued their prices this week in anticipation of higher borrowing costs during Trump’s second term.
At Friday’s closing bell, stocks ended with their best weekly gain of 2024, with the S&P 500 and Nasdaq 100 up about 5%.
Bitcoin, meanwhile, continued its record-breaking run on Friday in the wake of Trump’s victory, with the token surging past $76,500.
“The Trump rally is not over yet, with stocks hitting new all-time highs as investors look ahead to tax cuts, deregulation and ‘made in America’ policies to enable future gains,” said José Torres, a senior economist at Interactive Brokers. said. “Market participants are also benefiting from a dovish Federal Reserve.”
Solid earnings numbers also helped shares soar to records this week, with third-quarter results beginning to wrap up.
So far, 90% of S&P 500 companies have reported earnings. According to data from Fundstrat, 77% of these companies exceeded earnings expectations by an average of 6%, while 59% beat revenue expectations by an average of 6%.
Investors will turn their attention to inflation figures next week, with the October Consumer Price Index due on Wednesday and the October Producer Price Index due on Thursday.
Here’s where the US indexes stood at 4pm on Friday:
Here’s what else happened on Friday:
