Highlights
Equities soared Wednesday in a huge risk-on move amid optimism about growth and profits after a surprisingly quick and decisive Trump victory.
The Dow Jones industrial average jumped 3.6 percent, the S&P 500 rose 2.5 percent and the Nasdaq gained 3.0 percent. Bond yields and the dollar surged but oil prices slipped.
Stocks advanced widely with small caps among the best performers on hopes for faster growth and big tax cuts.
Financials advanced as investors expect a Trump administration will bring deregulation of banks. Other top performers include energy, as Trump is expected to roll back incentives for clean energy and boost the petroleum industry, plus consumer discretionary, industrials, and information technology. Lagging were defensive sectors including utilities, real estate, consumer staples and health care.
The Dow Jones industrial average jumped 3.6 percent, the S&P 500 rose 2.5 percent and the Nasdaq gained 3.0 percent. Bond yields and the dollar surged but oil prices slipped.
Stocks advanced widely with small caps among the best performers on hopes for faster growth and big tax cuts.
Financials advanced as investors expect a Trump administration will bring deregulation of banks. Other top performers include energy, as Trump is expected to roll back incentives for clean energy and boost the petroleum industry, plus consumer discretionary, industrials, and information technology. Lagging were defensive sectors including utilities, real estate, consumer staples and health care.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
