A welcome return. The New York Stock Exchange continued its race for records on Friday, still driven by the return of Donald Trump to the White House, its three star indices reaching new highs. The Dow Jones rose 0.59%, the Nasdaq index 0.09% and the broader S&P 500 index 0.38%.
The American market continued to welcome the arrival of Donald Trump to power on Friday, who “will promote lower tax rates for businesses and less regulation”, Patrick O’Hare, analyst, commented to AFP from Briefing.com. “We are witnessing the continuation of the post-election dynamic (…), and investors fear missing out on additional gains,” he added.
For the first time, during the session, the S&P 500 exceeded 6,000 points and the Dow Jones crossed 44,000 points. At the same time, investors were still seduced by the new rate cut announced Thursday by the American central bank (Fed) and by the image of good economic health in the United States. The publication during the session of an index of American consumer confidence, at its highest in November for six months, also brought the indices to New York on Friday.
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“Consumer optimism regarding improving incomes” notably “contributed to the increase in overall results,” said Jose Torres, analyst at Interactive Brokers, in a note. On the bond market, the interest rate on 10-year US government bonds stood at 4.30%, compared to 4.33% the day before at closing.
On the stock market, industrial stocks were in demand: GE Aerospace (+ 3.33%), Lockheed Martin (+ 2.31%) and Honeywell (+ 0.91%) all advanced. After having weakened the day before, financial stocks regained color, like Goldman Sachs (+ 1.22%), American Express (+ 0.27%), JPMorgan Chase (+ 0.40%) or Wells Fargo (+0.89%).
If Telsa took off by 8.19%, with a jump of 15% on Wednesday, it obviously owes it to the support shown by its boss Elon Musk to Donald Trump during his campaign. On the other hand, large caps in the technology sector fell, including semiconductor giants. Qualcomm (-1.16%), Micron (-1.33%), Broadcom (-0.09%), and AMD (-1.24%) all finished in the red. Nvidia – which entered the Dow Jones index on Friday, replacing its competitor Intel (-0.11%) – dropped 0.84%.