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US stocks hit record highs as investors celebrated Trump’s election victory and market gains.
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The Federal Reserve cut interest rates, Nvidia replaced Intel in the Dow Jones, and the S&P 500 briefly crossed 6,000 points.
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Investors will turn their attention to October inflation data next week.
US stocks rose to record levels on Friday, capping a monumental week for markets as investors celebrated Donald Trump’s election victory.
It was a big week for the market and momentum continued even after the Dow Jones Industrial Average gained 1,500 points on Wednesday. The S&P 500 briefly crossed 6,000 points for the first time, while the Dow Jones surpassed 44,000 during the day, also for the first time as Nvidia replaced Intel in the index.
On Thursday, traders had more reason to celebrate when the Federal Reserve cut interest rates again, this time by 25 basis points. Fed Chair Jerome Powell said the central bank felt good about the economy, with more easing on the table, even as bond markets rallied this week in anticipation of higher borrowing costs under Trump’s second term. .
At Friday’s close, stocks finished with their best weekly gain of 2024, with the S&P 500 and Nasdaq 100 up about 5%.
Meanwhile, Bitcoin continued its record-breaking streak on Friday following Trump’s victory, with the token surpassing $76,500.
“The Trump rally is not over, with stocks hitting new all-time highs as investors look toward tax cuts, deregulation and made-in-America policies to drive future gains,” said José Torres, senior economist at Interactive Brokers. , saying. “Market participants are also benefiting from a dovish Federal Reserve.”
Also helping propel stocks to records this week were strong earnings, with third-quarter results beginning to wrap up.
So far, 90% of S&P 500 companies have reported earnings results. According to Fundstrat data, 77% of those companies beat earnings estimates by an average of 6%, while 59% beat revenue estimates by an average of 6%.
Investors will focus their attention on inflation data next week, with the October Consumer Price Index due on Wednesday and the October Producer Price Index on Thursday.
Here’s where the US indices were at the 4pm close on Friday:
This is what happened on Friday: