Trump’s win sends Wall Street to record highs; Fed cuts interest rates

President-elect Donald Trump’s election as the 47th president of the United States sent Wall Street into a frenzy, driving major stock indexes to once again break record highs.

Investors are betting that Trump’s potential policies — such as lower corporate and individual taxes, coupled with deregulation in the financial sector — will spur growth for corporate America. They may be underestimating the impact of higher deficits and tariffs on inflation.

Investors are betting that President-elect Donald Trump's potential policies — such as lower corporate and individual taxes, coupled with deregulation in the financial sector — will spur growth for corporate America.

Among mega-cap companies, Tesla Inc. stood out, soaring about 30% this past week, which significantly boosted Elon Musk’s wealth in the wake of Trump’s victory.

Small and midsize stocks outperformed large caps, driven by expectations that trade restrictions could favor domestic businesses over global corporations. The Russell 2000 index recorded its strongest week since April 2020, while regional banks rallied to levels last seen before the March 2023 crisis.

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