Markets React to Trump Win: Stocks Surge Amid Regulatory Optimism

U.S. stock futures dipped after a Trump victory-inspired rally, breaching the significant 6,000 mark for S&P 500 futures. With anticipated tax cuts and deregulation, markets soared, though inflation concerns loom. Despite muted immediate impacts, Dow, S&P, and Nasdaq hit record highs. Nvidia's milestone contrasted earnings disappointments from Airbnb and Pinterest.

On Friday, U.S. stock index futures slightly declined following a significant rally bolstered by Donald Trump's election win and expected interest-rate cuts. This rally had propelled S&P 500 futures past the 6,000 mark, a first for the index.

Investors are optimistic about reduced regulation under President-elect Trump, expecting lower borrowing costs to sustain market momentum. The Federal Reserve cut its benchmark rate by 25 basis points, with Chairman Jerome Powell indicating the election outcome won't affect near-term monetary policy.

However, Trump's expansive fiscal plans and proposed tariffs could raise inflation, posing challenges for Fed policy. Meanwhile, Wall Street's reaction was subdued but saw the major indexes close at record highs, driven by strong earnings and growth expectations alongside the 'Fed put.' Nvidia made history by surpassing a $3.6 trillion market value, despite other tech heavyweights like Airbnb and Pinterest reporting disappointing financial results.

(With inputs from agencies.)