Market Euphoria: S&P 500 Surpasses 6,000 Amid Political Shifts

The S&P 500 briefly exceeded the 6,000 mark with its largest weekly percentage gain in a year, supported by anticipated Republican business policies after Trump's election. Nasdaq and Dow also reported significant gains, while consumer sentiment reached a seven-month high. Rate-sensitive sectors benefited as Treasury yields fell.

The S&P 500 index notched a historic achievement, briefly topping the 6,000 level and closing with its strongest weekly performance in a year. This surge was catalyzed by Donald Trump's electoral victory and the potential for a Republican-dominated Congress, heightening expectations for pro-business policies.

Market optimism was further buoyed by the Federal Reserve's widely anticipated 25 basis point interest rate cut. Investors monitored a likely 'Red Sweep' in Congress, with Republicans retaining a narrow lead in the House after seizing control of the Senate, poised to facilitate Trump's legislative agenda.

Nasdaq continued its upward trend, setting record closing highs amid expectations for lower corporate taxes. The S&P 500 registered its 50th record close, with strong performances in rate-sensitive sectors like real estate and utilities. Meanwhile, U.S. consumer sentiment hit a seven-month peak, reflecting favorable economic outlooks.

(With inputs from agencies.)