The leading US index rallies instead of the expected Trump post-election meltdown. Shares in banks, construction and defence rise, tech shares fall.
ADVERTISEMENTThe 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
Dow Jones closes at record high https://t.co/kFJEHVLSaE
— TIME (@TIME) November 10, 2016
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.
#BREAKING Dow surges to 1.2% to record close, Nasdaq loses 0.8%
— AFP news agency (@AFP) November 10, 2016
BREAKING: Dow closes at record high; comes amid continued surge following the election of Donald Trump –
CNBC</a> <a href="https://t.co/ZpDNMjuQeG">https://t.co/ZpDNMjuQeG</a></p>— NBC Nightly News (NBCNightlyNews) November 10, 2016
Dow surges to close at record high. So much for Trump market meltdown.
— Andrew Neil (@afneil) November 10, 2016
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
Dow Closes at Record High https://t.co/J9JGD3qAUDpic.twitter.com/zHkAAqi2Pw
— WTAG Radio (@WTAGradio) November 10, 2016
Already having an effect. https://t.co/CIYgMAW0sI
— David A Barclay (@DavidABarclay) November 10, 2016
