On Friday, optimism pushed U.S. stocks within reach of record highs, with the S&P 500 gaining an additional 0.31%. The Dow Jones Industrial Average rose 0.52%, moving above the 44,000 mark for the first time, while the Nasdaq Composite edged lower after hitting a post-election high.
Wall Street concluded one of its best weeks on expectations of Donald Trump's planned economic measures, which are anticipated to boost the economy. Optimism was particularly strong on Tuesday and Wednesday, but a more subdued mood returned in Friday's final session, with the dollar and Treasury yields slightly reversing gains from the post-election rally. The “Trump trade” effect started to lose momentum, though the major indexes overall remained strong for the week.
The market was also affected by China's announcement of a new $1.4 trillion fiscal stimulus plan aimed at refinancing local government debt, which investors doubted would significantly improve a slowing economy. Chinese stocks and oil prices consequently suffered.
On the corporate front, Tesla's (TSLA, Financial) market cap reached $1 trillion, with the stock rising between 5-7% for the week. Meanwhile, Trump Media & Technology Group (DJT, Financial) climbed 12% and saw fluctuations after Donald Trump stated he would retain his stake in the company, which operates Truth Social.
A recent interest rate cut by the Federal Reserve also contributed to the momentum, bringing the S&P 500 closer to the 6,000-point mark a high that marked Wall Street's best weekly performance in twelve months.
