4:10pm: Stocks end week with record gains
Wall Street ended its best week of the year on Friday, with the S&P 500 briefly hitting 6,000, driven by optimism around Donald Trump's White House victory and the Federal Reserve's rate cut.
The S&P 500 rose 0.4% to close at 5,996 points, the Nasdaq closed near flat, and the Dow Jones Industrial Average gained 0.6%, crossing 44,000 for the first time.
The rally was fueled by hopes that Trump's policies would boost the economy, though some volatility occurred as the U.S. dollar and Treasury yields lost ground.
Nvidia joined the Dow Jones Industrial Average, cementing its role in the AI sector, while the company’s stock surged, making it the world's most valuable company, surpassing Apple.
Meanwhile, Trump Media & Technology Group stock climbed over 15%, after Trump announced he would retain his shares, pushing the company’s market cap to $7 billion.
1:00pm: Further deglobalization
Wells Fargo views a potential Trump victory as a catalyst for further deglobalization, with the former president's ability to unilaterally implement tariffs and adopt a more protectionist trade policy. This would likely intensify trends of reduced global economic integration.
"During his first administration and over the course of his latest campaign, Trump has been unwavering in his commitment to tariffs," analysts at the bank wrote.
"Time will tell how tariff policy ultimately evolves, but (Trump's) tariff threats should be taken seriously."
11:40am: Best week in a year
Wall Street is enjoying its best week of 2024.
"With the election out of the way investors have rushed back to US stocks, cheered both by the removal of political uncertainty and by the promise of more earnings growth," commented Chris Beauchamp of IG.
"Worries about higher inflation and an end to rate cuts have been cast aside, for now."
The Dow added to its morning gains, up 0.6% for the day so far, while the S&P 500 had gained 0.4% and the Nasdaq was near the flatline, up 7 points.
10.02am: Stocks enjoy positive start
Wall Street enjoyed a positive start on Friday, placing stocks on course for another record-breaking day.
The Dow Jones opened 0.3% up, while the Nasdaq and S&P 500 also opened in the green on Friday, after each had hit record intraday highs on Thursday.
Gains over the week have been boosted following Donald Trump’s election win on Wednesday, which was followed by an interest rate cut by the Federal Reserve on Thursday.
“Investors wagered that a Republican administration would energise US economic growth, boost American industry, and ease restrictions on digital assets,” City Index analyst Fawad Razaqzada commented.
The S&P 500 was on course for its best weekly performance in a year as a result, having climbed by 4.6% to 5,985 as of Friday morning.
7.38am: Calmer day expected
Wall Street looked on course for a negative start on Friday as the end of busy week which saw Donald Trump claim election victory and the Federal Reserve cut interest loomed.
Futures had the Nasdaq off 0.3% ahead of the opening bell, while the Dow Jones was seen 0.1% lower as the S&P 500 appeared flat.
All three had hit intraday records on Thursday as Trump’s victory, followed by the Fed’s 25 basis point interest rate cut, sent stocks higher.
“The week saw the best possible combination for US equity bulls,” Swissquote Bank analyst Ipek Ozkardeskaya commented.
However, looking ahead, the “Fed has no choice but to dance to Trump’s tune, whether it likes it or not,” Ozkardeskaya added.
“That reality comes with the risk of higher-than-otherwise inflation and deserves careful attention.”