US Stocks Touch Record High on Monday

The Dow Jones Industrial average opened at a record high on Monday, driven by financial stocks, after the index capped off its best week since 2011 following Donald Trump’s unexpected victory in the U.S. presidential election.

Since Trump’s triumph last Tuesday, investors have been betting on his campaign promises to simplify regulation in the health and financial sectors and boost spending on infrastructure.

The financial index rose 2.18 percent to its highest level since 2008. Goldman Sachs and JPMorgan provided the biggest boost to both the S&P 500 and the Dow.

The Nasdaq Composite was little changed, weighed down by tech giants Apple, Facebook and Microsoft.

Stock markets around the world were affected by a continued selloff in the global bond market as investors looked for more clarity regarding Trump’s policies.

The risk of faster domestic inflation and wider budget deficits if Trump goes on a spending binge sent yields on U.S. Treasury and other benchmark global bonds higher. The dollar index surged to an 11-month high.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza