US stocks closed at record highs on Friday, marking their best week of the year following Donald Trump's victory in the US presidential election. The S&P 500 saw a 0.38% increase, briefly touching 6,000 points for the first time before settling around 5,996. Meanwhile, the Dow surged approximately 260 points, or 0.59%, hitting an all-time high of 44,000 points and closing at 43,989. Both indices experienced their most robust week in twelve months.
The Nasdaq, known for its tech-heavy composition, rose by about 0.09% on Friday after surpassing 19,000 points earlier in the week. The US dollar also saw a slight uptick following a week-long rally, while Treasury yields slightly decreased.
Investors spent the week adapting to Trump's win and analyzing his proposed policies, notably his plan to reduce the corporate tax rate. The prevailing sentiment is that a business-friendly and tax-friendly environment will emerge, particularly with the Republicans securing the Senate.
The swift resolution of the election provided much-needed clarity to the markets, prompting a surge in US stock investments. The uncertainty surrounding the election results had previously dampened investor confidence, with fears of potential disputes looming. The consensus was that the election outcome might be delayed, causing apprehension among investors.
According to market experts, it is common to witness a decline in the market before elections, followed by a rebound once the results are clear. The newfound certainty post-election tends to instill confidence in investors, leading to increased market activity and positive trends.
