Milestone Reached: S&P 500 Crosses 6,000 Amid Trump and Fed Momentum

The S&P 500 briefly crossed the 6,000 mark and ended the week with its largest percentage gain in a year.

By Sheenu Gupta On Nov 11, 2024 Share with new partner:

The S&P 500 briefly surpassed the 6,000 level and ended the week with its largest weekly percentage gain in a year, driven by growing optimism following Donald Trump’s election victory.

The potential for a Republican Party sweep in Congress further fueled expectations for pro-business policies that could benefit the economy. Additionally, stocks received a boost from the widely anticipated 25 basis point interest rate cut by the Federal Reserve, which was announced on Thursday. This positive momentum helped the S&P 500 and the Dow Jones Industrial Average post their most significant weekly percentage gains since early November 2023.

Meanwhile, the Nasdaq recorded its strongest performance in two months, marking the second-best week of 2024. The combination of political and monetary policy developments, alongside investor optimism, contributed to the rally across major U.S. stock indices.

Investors were closely watching the possibility of a “Red Sweep,” where Republicans were expected to maintain their slim majority in the House of Representatives while gaining control of the Senate. This political shift was seen as likely to make it easier for President Trump to push forward his legislative agenda, including policies aimed at stimulating economic growth. As a result, there was growing optimism about the potential for lower corporate taxes and reduced regulations, both of which were expected to benefit businesses.

This positive outlook helped propel the Nasdaq to new record closing highs for three consecutive days. The market’s rally was further supported by the anticipation that these favorable policies would boost corporate profits. Meanwhile, the S&P 500 also experienced a strong performance, marking its 50th record close of the year, reflecting the overall positive sentiment and confidence in the market’s future.

“It is a psychologically important number but with all the developments this week, I don’t think it’s terribly important if we close at 6,005 or if we close at 5,995. The market is way up this week,” said Mike Dickson, head of research and quantitative strategies at Horizon Investments in Charlotte, North Carolina.

“There’s been so many things, so much good news for the market this week as evidenced by the prices. All of that far outweighs whether or not we’re on the right or left hand side of that 6,000 number when the close happens.”

The Dow Jones Industrial Average climbed by 259.65 points, or 0.59%, finishing at 43,988.99. The S&P 500 increased by 22.44 points, or 0.38%, closing at 5,995.54, while the Nasdaq Composite rose by 17.32 points, or 0.09%, to end the day at 19,286.78.

For the week, the S&P 500 saw a notable increase of 4.66%, while the Nasdaq rose by 5.74%, and the Dow gained 4.61%. The Dow reached a significant milestone, surpassing the 44,000 mark for the first time, partly driven by a late rally in shares of Salesforce. The software company saw its stock rise by 3.59% after Bloomberg reported that Salesforce plans to hire 1,000 employees to help promote its new artificial intelligence tool, Agentforce.

Meanwhile, the S&P 500 and Nasdaq both extended their winning streaks, with each index securing their fourth consecutive session of gains. The overall market performance was driven by strong investor sentiment, fueled by expectations of business-friendly policies and positive earnings reports.