The S&P 500 briefly surpassed the 6,000 mark and closed with its biggest weekly percentage gain in a year, as Donald Trump’s election victory and a possible Republican Party sweep in Congress fueled expectations for favourable business policies. Also supporting stocks this week was a widely expected interest rate cut of 25 basis points by the Federal Reserve on Thursday.

The S&P 500 and the Dow Industrials registered their best weekly percentage jump since early November 2023, while the Nasdaq notched its best week in two months and second-best week of 2024. Investors were also monitoring for a likely “Red Sweep” as Republicans were set to keep their narrow lead in the House of Representatives after winning control of the Senate. That would make it easier for Trump to enact his legislative plans. Expectations for lower corporate taxes and deregulation lifted the Nasdaq to record closing highs for three straight sessions. The S&P secured its 50th record close of the year. The Dow Jones Industrial Average rose 0.59 per cent, the S&P 500 gained 0.38 per cent and the Nasdaq Composite jumped 0.09 per cent. For the week, the S&P 500 gained 4.6 per cent, the Nasdaq rose 5.7 per cent and the Dow climbed 4.6 per cent.