Traders were active on the New York Stock Exchange floor Thursday morning following a postelection rally that saw the S&P 500 and Nasdaq Composite set new records. Despite minimal movement in U.S. stock futures overnight, significant gains were noted during the trading day. The S&P 500 rose 0.7% to a new high, while the Nasdaq surged 1.5%, closing above 19,000 for the first time. The Dow Jones Industrial Average showed a slight decline, though each of the major indexes reached intraday records earlier.
The market rally persists from Wednesday, spurred by President-elect Donald Trump’s victory. This optimism was bolstered as both the Dow and S&P 500 experienced their best performances since November 2022. The Federal Reserve contributed to the positive market sentiment by enacting a quarter-point interest rate cut, aligning with expectations. Fed Chair Jerome Powell expressed optimism about the economy’s condition, yet uncertainty remains concerning future rate cuts post-election, as highlighted by Scott Helfstein of Global X ETFs.
Investors generally anticipate that a Republican-led government could boost growth and risk assets through deregulation, mergers, acquisitions, and tax cuts. However, elevated federal deficit concerns and tariff increases suggest potential inflationary pressures. Helfstein expressed that while the market foresees growth under a Trump administration, new tariffs might elevate inflation risks. The Fed currently considers risks balanced between stable prices and full employment, yet a shift towards accelerating inflation could alter this balance.
As a result of the postelection rally, the major indexes are on track for significant weekly gains, with the S&P 500 and Dow aiming for their best week since November 2023, advancing approximately 4.3% and 4%, respectively. The Nasdaq has been the standout performer, boasting a 5.6% gain through Thursday’s close.
Original Story https://www.cnbc.com/2024/11/07/stock-market-today-live-updates.html
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