US Stocks Hit Fresh Records Amid Post-Election Rally

AFP/APP

New York: Wall Street stocks finished at new record highs on Friday, capping a strong week fueled by relief over the swift US election results and optimism about President-elect Donald Trump’s anticipated economic policies.

The broad-based S&P 500 closed at 5,995.54, gaining 0.4% for the day and 4.7% for the week, reflecting market enthusiasm for Trump’s growth agenda.

Meanwhile, the Dow Jones Industrial Average climbed 0.6% to reach 43,988.99, and the Nasdaq Composite rose 0.1% to 19,286.78.

Jack Ablin, Chief Investment Officer at Cresset Capital Management, noted the market’s current “honeymoon period,” suggesting that this positive trend might continue through the end of 2024, although concerns about potential overvaluation could arise if the upward trend persists.

Market analysts suggest that Trump’s proposed tax cuts, regulatory relief, and encouragement of corporate mergers and acquisitions have boosted investor confidence.

However, some caution remains as expectations grow that inflationary pressures from Trump’s import tariffs could lead the Federal Reserve to reconsider the pace of interest-rate adjustments.

European Markets Retreat Amid Economic Uncertainties

In contrast, European stocks fell on Friday, with significant drops in Frankfurt and Paris.

In Germany, political uncertainties following the collapse of the government coalition contributed to a weaker stock performance, while luxury stocks in France, including Cartier’s parent company Richemont and Gucci owner Kering, declined due to China’s economic slowdown.

China’s response to rising local government debt concerns involved raising the debt ceiling by $840 billion, a measure interpreted as a step to prevent a potential financial crisis rather than to stimulate consumer spending.

This follows campaign statements from Trump suggesting possible tariffs of up to 60% on Chinese imports, raising concerns over China’s economic growth outlook.

Key figures around 2230 GMT –

 New York – Dow: UP 0.6 percent at 43,988.99 (close)

                  New York – S&P 500: UP 0.4 percent at 5,995.54 (close)

                  New York – Nasdaq: UP 0.1 percent at 19,286.78 (close)

                  London – FTSE 100: DOWN 0.8 percent at 8,072.39 (close)

                  Paris – CAC 40: DOWN 1.2 percent at 7,338.67 (close)

                  Frankfurt – DAX: DOWN 0.8 percent at 19,215.48 (close)

                  Tokyo – Nikkei 225: UP 0.3 percent at 39,500.37 (close)

                  Hong Kong – Hang Seng Index: DOWN 1.1 percent at 20,728.19 (close)

                  Shanghai – Composite: DOWN 0.5 percent at 3,452.30 (close)

                  Euro/dollar: DOWN at $1.0724 from $1.0805 on Thursday

                  Pound/dollar: DOWN at $1.2921 from $1.2987

                  Dollar/yen: DOWN at 152.62 yen from 152.94 yen

                  Euro/pound: UP at 82.95 pence from 83.19 pence

                  West Texas Intermediate: DOWN 2.7 percent at $70.38  per barrel

                  Brent North Sea Crude: DOWN 2.3 percent at $73.87 per barrel