Wall Street finishes at record high extending post-US election rally

Wall Street stocks finished at fresh records, ending a buoyant week on a positive note prompted by relief at the swift resolution of the US presidential election.

The broad-based S&P 500 finished at 5,995.54, up 0.4% for the day and 4.7% for the week as markets cheered in anticipation of President-elect Donald Trump’s growth agenda.

The Dow Jones Industrial Average rose 0.6% to 43,988.99, while the tech-rich Nasdaq Composite Index gained 0.1% to 19,286.78.

“We’re in this honeymoon period between Election Day and Inauguration Day, which we saw in previous election cycles,” said Jack Ablin, chief investment officer at Cresset Capital Management.

Ablin thinks the strength in US equities could extend through the rest of 2024, but cautioned that worries about overvaluation will grow if the market keeps rising.

Market watchers have greeted Mr Trump’s win in anticipation that tax cuts and regulatory relief will more than offset the ills of higher tariffs.

Mr Trump appointees are also expected to permit more corporate dealmaking, boosting mergers and acquisitions.

It marked the debut in the Dow of chip company Nvidia, which declined 0.8% and paint company Sherwin-Williams, which rose 0.8%.

Airbnb fell 8.7% after reporting earnings that narrowly missed analyst expectations.