Wall Street Soars on Trump's Fiscal Policy Optimism

Wall Street indices reached record highs, fueled by optimism over Donald Trump's potential fiscal policies. Tesla's market value surged, anticipating benefits from Trump's ties with CEO Elon Musk. The S&P 500 rallied as banks lifted the Dow, while smaller companies gained from proposed tax cuts.

The major indices on Wall Street celebrated a record-breaking session on Monday, driven by investor optimism that Republican President-elect Donald Trump's fiscal policies will benefit a range of stocks.

Tesla experienced a significant market boost, climbing 9% to surpass a $1.1 trillion valuation amid speculation that CEO Elon Musk's connections with Trump could prove advantageous. Other stocks that rallied post-election continued their upward trajectory, with the financial index of the S&P 500 getting a 1.4% lift, largely thanks to banking giants such as Wells Fargo & Co and JPMorgan.

The day also witnessed a 1.5% leap for the small-cap Russell 2000, marking its highest point since November 2021, as smaller firms were seen as likely beneficiaries of expected regulatory relaxations and tax reductions under Trump's policies. However, large tech companies like Microsoft, Amazon, and Meta Platforms saw slight declines, with AI heavyweight Nvidia also receding by 1.6%.

(With inputs from agencies.)