U.S. stocks completed a momentous trading session on Wednesday, with investor optimism over Donald Trump’s presidential-election victory fueling the biggest post-election jump in the Dow Jones Industrial Average in 128 years.
All three major U.S. stock indexes finished at record closing highs despite a spike in Treasury yields, led by a 15.3-basis-point rise in the 30-year rate.
The Dow Jones Industrial Average finished up by 1508.05 points, or 3.6%, at a new record close of 43,729.93, based on preliminary data. It was the 41st record close of the year and the biggest post-election gain since November 1896, according to Dow Jones Market Data.
The S&P 500 closed up by 146.28 points, or 2.5%, at a record closing level of 5,929.04.
The Nasdaq Composite ended up by 544.29 points, or 3%, at a record closing level of 18,983.47.
The small-cap Russell 2000 Index finished up by 132.08 points, or 5.8%, at 2,392.92.
Wednesday’s session marked the largest post-election gains on record for the S&P 500 and Russell 2000, and the biggest for the Nasdaq Composite since November 2020.
At Janus Henderson Investors, Marc Pinto, head of Americas equities, and Lucas Klein, head of EMEA and Asia Pacific equities, said the surprisingly straightforward U.S. election results may provide additional fuel for U.S. stocks through year-end. However, they said, it remains to be seen how policy will impact future earnings—the real driver of long-term returns.