One of the best weeks for the markets.

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Our View

The Trump rally has added over $1.8 trillion of market capitalization, who would have thought? The change in the tone of the S&P has gone from a slow grind down to an enormous rally. There is nothing notable to speak of today, consumer sentiment and two fed speakers and the Friday options expiration.

During Thursday’s trading session, the S&P 500 gained 0.7%, setting a new record, while the Nasdaq jumped 1.5% to close above 19,000 for the first time. The Dow remained slightly lower, though all three indexes reached intraday record highs. The Federal Reserve cut interest rates by a quarter point as expected, with Fed Chair Jerome Powell expressing optimism about the economy.

We have strong weekly gains for all major indexes, with the S&P 500 up 4.3%, the Dow nearly 4%, and the Nasdaq advancing 5.6%. Investors are weighing the potential impact of a Republican-controlled government, which is expected to be favorable for deregulation, tax cuts, and M&A activity but could also spark inflation concerns due to higher federal deficits and new tariffs. I don’t think the Fed’s path forward for rate cuts is as certain with uncertainty over growth and inflation risks.