Stocks Soar as Market Embraces Republican Sweep and Trump's Pro-Business Agenda

The S&P 500 reached historic highs driven by Donald Trump's election win and favorable business policy expectations. Republican control of Congress is aiding Trump's plans. Key rate-sensitive sectors gained due to falling Treasury yields, while the market's performance overshadowed missed earnings expectations from Airbnb and Pinterest.

The S&P 500 briefly surpassed the 6,000 mark, closing with its biggest weekly percentage gain in a year, fueled by Donald Trump's election win and a possible Republican sweep in Congress, hinting at pro-business policies. An expected Federal Reserve rate cut further supported stock gains.

With the S&P 500 and Dow Industrials marking substantial weekly jumps, the Nasdaq also showed strong performance, expectantly observing a potential 'Red Sweep' which could ease Trump's legislative agenda. Optimism over tax cuts and deregulation pushed major indexes to record highs, with the S&P nearing its 50th record close of the year.

Driving stock enthusiasm, Salesforce's hiring boost and technological initiatives contributed to the Dow surpassing 44,000. Meanwhile, rate-sensitive sectors like real estate thrived amid declining Treasury yields. Overall, a positive consumer sentiment amongst Republicans suggests bolstered market confidence, despite revenue forecasts missing for Airbnb and Pinterest.

(With inputs from agencies.)