Advertisement

Renewed optimism for Trump pushes Dow to new record, best week since 2011

By Doug G. Ware
Renewed optimism for Trump pushes Dow to new record, best week since 2011
The Dow Jones Industrial Average, shown here in a line graph for the week of Nov. 7-11, completed a record rally on Friday by climbing to a new all-time high and wrapping its best week since December 2011. The index's astounding revival since plummeting 800 points on election night has many analysts believing the domestic markets will continue to be bullish through the end of the year. Image courtesy New York Stock Exchange/DJIA

NEW YORK, Nov. 11 (UPI) -- Wall Street continued its record Donald Trump-inspired turnaround on Friday by posting yet another all-time high for the Dow Jones Industrial Average.

The index climbed another 40 points by the end of trading Friday to finish at 18,847.66 -- its highest finish in history, and just 152 points away from the 19,000-mark.

Advertisement

In addition to posting a new record high, the Dow also wrapped its best week since December 2011 -- a gain of more than 5 percent since the opening bell Monday. The rise is spectacular considering the index shed 800 points at the height of uncertainty on election night.

RELATED Thursday: Dow blazes into record territory in second day of Trump optimism

Wednesday, though, the market rebounded as uncertainty gave way to renewed optimism about the positive economic prospects of a Trump presidency.

RELATED GrubHub CEO backtracks after anti-Donald Trump email

The S&P 500 sagged slightly on Friday, dropping 3 points to 2,164.45, and the tech-weighted Nasdaq, which struggled to join the surge this week, climbed 28 points to 5,237.11.

"The last couple days we've had big moves. Now everyone's saying, 'let's catch our breath,'" analyst Frank Ingarra said Friday. "We're in this period of a big rebalance in the market as people try to read the tea leaves to know what the new president is going to do and which sectors are going to win or lose."

Advertisement

Industrial and financial shares were most responsible for this week's remarkable comeback, as investors poured money into futures they believe will benefit from likely Trump policies of increased government spending and decreased corporate regulation.

RELATED Zuckerberg: Idea that 'fake news' on Facebook turned the election is 'crazy'

Financial stocks in the S&P 500 finished the week up 11 percent and industrial shares rose 8 percent.

RELATED Oil prices sharply lower on OPEC production

Many analysts say it's likely they will continue to be bullish through the end of the year and into early 2017, when Trump takes office.

Thanks to Trump's election and the positive economic ripple it's created so far, the U.S. Federal Reserve might also finally raise key interest rates at its next policy meeting on Dec. 13-14 -- or at least at a quicker pace than it had planned -- as the new GOP administration is expected to boost inflation above the 2 percent benchmark.

RELATED Disney falls short of expectations with $13B revenue in Q4

The Fed raised the federal funds rate in December 2015 after nearly a decade of rates near zero, but has left them unchanged for all seven policy meetings so far this year.

Latest Headlines

Advertisement
Advertisement

Follow Us

Advertisement