President-elects promises to roll back regulations and spend on privatization spurred market on Monday: The post-election rally is continuing
Stock markets hit record highs on Monday as traders continued to bet on a Trump-backed boom for business. Rising oil prices drove gains in the energy sector, where the president-elect has promised to roll back regulations, and the S&P energy index gained 2.2% and closed at its highest levels in 16 months.
At the close of the New York stock exchange (NYSE), the Dow Jones industrial average rose 88.76 points, or 0.47%, to 18,956.69, the S&P 500 gained 16.28 points, or 0.75%, to 2,198.18 and the Nasdaq Composite added 47.35 points, or 0.89%, to 5,368.86.
The levels marked a record close for each of the three major Wall Street indexes, but market participants cautioned that trading volume was likely to be light this week ahead of the US Thanksgiving Day holiday on Thursday.
Brent crude oil settled up 4.4% at $48.90 and US crude settled 3.9% higher at $47.49 after touching their highest levels in about three weeks as the dollar weakened. The Russian president, Vladimir Putin, said he believed there was a strong likelihood that the Organization of Petroleum Exporting Countries (Opec) would agree to cap production later this month.
European equity markets also moved higher as a jump in oil prices helped spur energy gains.
The post-election rally is continuing, said Bucky Hellwig, senior vice-president at BB&T Wealth Management in Birmingham, Alabama. There was some concern that rates might rise too far, but it looks like they may have slowed down a little bit. The Fed chair, Janet Yellen, said an interest rate hike could be appropriate relatively soon on Thursday, citing excessive risk-taking as a danger were rates to remain low.
The dollar was down 0.3% to 100.89 against a basket of major currencies, pausing after a 10-day streak in which it gained nearly 5%. That rally was fueled by expectations of policies by President-elect Donald Trump that would lead to interest rate increases.