[New York Stock Market] Trump Rally Continues... S&P and Dow Reach All-Time Highs

The U.S. New York stock market continues its rally. This is attributed to the growing possibility that the Republican Party will become the majority not only in the Senate but also in the House, raising expectations that President-elect Donald Trump's pro-business policies could gain momentum.

Reuters Yonhap News

On the 8th (local time), the S&P 500 index and the Dow Jones Industrial Average reached record highs in the U.S. New York stock market. At the New York Stock Exchange (NYSE) that day, the Dow closed at 43,988.99, up 259.65 points (0.59%) from the previous session.

The S&P 500 closed at 5,995.54, up 22.44 points (0.38%). The S&P 500 even surpassed 6,000 during the session. Additionally, the tech-heavy Nasdaq Composite Index ended trading at 19,286.78, up 17.32 points (0.09%).

It is evaluated that expectations of Trump’s pro-business moves lifted the stock market. The market is already reflecting the ripple effects of massive tax cuts and deregulation, including mergers and acquisitions (M&A). Furthermore, as the likelihood increases that the Republican Party will hold the majority in both the Senate and the House, a 'buying' movement is appearing in the market.

Along with this, Federal Reserve Chairman Jerome Powell’s positive assessment of the current U.S. economic situation during a press conference following the Fed’s decision to cut the benchmark interest rate by 0.25 percentage points the previous day also bolstered market optimism.

By individual stocks, the Trump trade continued. Tesla surged 8.2%, and Trump Media & Technology jumped 15.2%. Notably, Tesla’s market capitalization reached $1.031 trillion. It is the first time in three years since October 2021 that its market cap exceeded $1 trillion. Meanwhile, cryptocurrency exchange Coinbase rose 5.93% on prospects of deregulation.