Wall Street ends week of euphoria due to Trump and rate cuts

New York (EFE) – Wall Street ended a week of euphoria with strong cumulative gains linked to Republican Donald Trump’s victory in the US elections and new interest rate cuts by the Federal Reserve.

Late in the session, the Dow Jones Industrial Average and S&P 500 posted records near the key 44,000 and 6,000 levels, which they briefly surpassed in both cases, to finish their best week of the year with a combined gain of 4.6%. and 4.7% respectively.

The Nasdaq index of technology companies posted a combined gain of 5.7%, led by electric car company Tesla, owned by tycoon Elon Musk, a Trump ally, which is gaining 29% weekly and has already surpassed $1 billion in capitalization. .

Three indicators are at historical highs: the Dow Jones Industrial Average – 43,988 points; S&P 500 at 5995 and Nasdaq at 19286.
Tuesday’s election marked a turning point: Once forecasts pointed to Trump as the winner, markets began to react positively, including Bitcoin, which peaked at $77,200 before slowing.

Wall Street posted its best growth in a century after Trump’s victory

The Dow Jones Industrial Average posted its biggest post-election gain in more than a century on Wednesday, with gains driven by favorable market perceptions of some of Trump’s policies, especially his tax cut proposals.

Trump Media, the president-elect’s media company, soared several times this week amid speculation that he was looking to sell his shares, which he denied today, but was still up 15%.

Investors believe a Republican government will be more willing to embrace deregulation that favors mergers and acquisitions and that party-controlled legislatures, as they are, will avoid obstruction, although debt is a concern.

Fed cuts rates

Sectors with the biggest gains this week include consumer discretionary (8.9%), technology (6.8%), industrials (5%) and financials (4.6%), according to market research firm Fidelity.

Also fueling optimism was the Fed’s second rate cut, which was in line with forecasts by a quarter point to a range of 4.5% to 4.75%, although investors are not taking it for granted that the central bank will follow the same path. in December.

Fed President Jerome Powell, who has insisted the institution is apolitical, said the United States rests on a strong economic foundation and appears happier than a few months ago with the evolution of the labor market and the situation, analysts said. .
Elsewhere in markets, Texas crude traded just above $70, the 10-year yield fell to 4.3%, gold also fell to $2,691 an ounce and the euro fell against the dollar, changing 1.0718.