Dow Jones surges to record high

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By Catherine Hardy  with The Guardian, EFE, Business Insider
Dow Jones surges to record high

The Dow Jones Industrial average hit a record high on Thursday.

Donald Trump’s victory in the US presidential election had been expected to rattle investors.

However, after a volatile opening, the Dow climbed for a second day with banking shares the biggest gainers.

The business

The index rose 218 points or 1.18 percent by the close of trade.

It ended Thursday’s session at 18,807.

The S&P 500 was also slightly up although the Nasdaq changed direction due to a steep sell-off of technology shares, with Apple and Amazon both down.

Likely game-changers

Immediate, post-election statements:

  • No reference to trade barriers
  • No reference to wall on Mexican border

Long-term policy preferences:

  • Conciliatory tone on corporation tax and cutting back regulation
  • Stance on climate change targets meant oil and gas shares rose
  • A pledge to ease banking rules
  • Mining and construction shares rose on pledge to get Americans back to work
  • Vague talk about restricting treatment charges was good news for drug companies