Stocks Surge with Trump's Victory and Fed's Rate Cut

The S&P 500 neared the 6,000 mark, driven by Trump's business-friendly agenda and an anticipated Fed rate cut easing economic stress. Record highs were set amid expectations of reduced taxes and looser regulations. Analysts warn of inflation risks under Trump's policies, despite the current positive market sentiment.

The S&P 500 index moved closer to the landmark 6,000 level and the Dow saw gains on Friday. This rally was fueled by the aftermath of Trump's decisive victory, which bolstered hopes for a business-oriented agenda, alongside a predicted interest-rate cut that alleviated economic pressures in the U.S.

This positive momentum positioned both indexes for their finest week since last November, with the Nasdaq also charting a notable performance. The market's enthusiasm was lifted further by the Federal Reserve's decision to reduce the benchmark rate by 25 basis points, as Chair Jerome Powell assured that the election results would not affect near-term monetary policies.

While optimism flourished, traders have moderated expectations for further rate cuts next year. Concerns about Trump's policies potentially stoking inflation led to a rise in bond yields. Market expert Ryan Dykmans highlighted the declining VIX, indicating substantial optimism yet cautioned against the underestimation of inflation and interest rate risks.

(With inputs from agencies.)