The S&P 500 closed last week just shy of a record 6,000 on the back of a strong weekly performance after Donald Trump won the The U.S. Presidential Election and the Federal Reserve cut interest rates by 25 basis points.
The index rebounded from the two previous weekly losses. All sectors notched gains, led by consumer discretionary’s 7.6% jump. Energy, industrials, financials and technology also outpaced the headline index’s 4.7% rise.
Trump, the Republican nominee, defeated Kamala Harris, Vice President and the Democratic candidate, in Tuesday’s vote. His return to the White House will have investors watching the impact of potential new tariffs, the labor market, changes in immigration policy and benefits to top technology firms, according to analysts.
Related: Post-Election Market Outlook: Navigating Trump’s Economic Policies
The Federal Open Market Committee (FOMC) reduced interest rates to a range of 4.50% to 4.75%, following a 50-basis-point cut in September. Fed Chair Jeroma Powell said Thursday that the results of the presidential and congressional elections are not expected to have an impact on near-term monetary policy decisions, including during the FOMC’s December meeting.
The U.S. services sector continued to expand in October, according to separate reports from Institute for Supply Management and S&P Global released last week. Recent data showed that the manufacturing sector remained in contraction territory last month amid output weakness.
Consumer discretionary’s strong weekly performance was led by a 29% jump in Tesla (TSLA). The tech sector was aided by a 39% rise in software maker Palantir Technologies (PLTR).
This week, Home Depot (HD), Cisco (CSCO), Walt Disney (DIS) and AstraZeneca (AZN) are among the major companies scheduled to post results. The economic calendar will feature official U.S. consumer and producer inflation reports, as well as retail sales data for October.
Get instructions on how to enable our Flash News Briefing skill to your Amazon devices:
Bautis Financial LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
Post-Election Market Outlook: Navigating Trump’s Economic Policies