Market Surge: Trump's Victory Sparks a Stock Rally

The stock market soared as the S&P 500 nearly reached 6,000 following Donald Trump's electoral success, driven by expectations of a business-friendly environment and potential rate cuts. Investors rallied back into equities, pushing major indices to notable highs. However, concerns over inflation and future rate cuts persist.

The S&P 500 briefly touched the 6,000 mark during the week's trading, propelled by Donald Trump's electoral victory, which signaled a potential business-friendly future and an anticipated rate cut. This surge marked the index's strongest week of the year, while the Dow and Nasdaq also experienced substantial gains.

Market optimism was further fueled by a 25 basis point rate cut by the Federal Reserve, although Chair Jerome Powell noted the election's outcome wouldn't change immediate monetary policy. The Russell 2000 also saw its best week in four years, gaining 0.4%.

Despite the bullish market response, concerns linger about future inflation and bond market reactions, stemming from potential expansionary policies under Trump. This has dampened expectations for future rate cuts. Meanwhile, tech stocks and Chinese company listings saw declines, with Nvidia and Airbnb posting losses.

(With inputs from agencies.)