US stock markets today hit an all-time high on the hope that Trumponomics will give businesses a much-needed boost.
The Dow Jones hit 18,873.66 during trading, the highest level ever recorded.
In particular, banks and healthcare stocks were buoyed on expectations that President-elect Donald Trump will remove much of the red tape that shackles their profitability.
“In just a matter of hours, markets have switched from the election victory as a glass half empty to a glass half full,” said market analyst Jasper Lawler of CMC Markets.
He added: “The perceived negatives of a Trump victory of protectionist trade policy and his anti-Federal Reserve rants have been put aside in hopes he will run a pro-business administration supported by tax cuts, fiscal spending and deregulation.”
Banking stocks led the charge with JP Morgan and Goldman Sachs trading over four per cent higher. According to Chris Beauchamp of IG Markets this was due to the fact that a hike in US interest rates is still on the cards, along with Trump’s previously voiced intention post-financial crisis banking regulation such as the Dodd-Frank Act.
The success of the Dow, which represents 30 of the US’ largest companies, was replicated to a lesser degree in the broader exchanges.
The S&P 500 hit 2,182.30, similarly a high water mark, before falling back to end the day broadly where it started the day. The even broader Russell 3000 also hit similar highs before relapsing.
Tech stocks fared less well. The Nasdaq dipped over one per cent to 5,208.80 after opening slightly. Shares in tech companies such as Facebook and Microsoft shed three per cent. “These high growth names are likely to be out of favour for a while,” said Beauchamp.