Stocks turn mixed after Dow surges to new record high – USA TODAY
Stocks are moving solidly higher in midday trading on Wall Street following Donald Trump’s upset victory over Hillary Clinton in the U.S. presidential election. (Nov. 9)
The Dow surged as much as 180 points and blasted to new record highs in early trading Thursday after Asian markets soared overnight as investors were hopeful for a Day 2 of the “Trump Bounce” and fears related to Donald Trumpâs stunning election win gives way to hopes that the president-elect’s policies could boost the economy.
But the early rally faded slightly andÂ broader stock indexes turned lower as tech stocks took a hit.
At 11:15 Â a.m. ET, the Dow Jones industrial average was up about 60 points, or 0.3%, after earlier making a new intraday high of 18,769.46Â and eclipsing its closing record high of 18,636.05 notched in mid-August. The DowÂ jumpedÂ 256.95 points Wednesday to 18,589.69.
The broad Standard & Poor’s 500 stock index was down 0.4% and the Nasdaq compositeÂ slid 1.2%.
The initial post-election rally has been driven by investors reassessingÂ their views on a Trump presidency and beginningÂ to focus on the growth-friendly positives for the economy, such as fiscal spending, lower taxes and less regulation of businesses under Trump.
In general, Wall Street is shifting its focus from Trump, the man and presidential campaigner, to Trump’s policies.
Wall Street also is betting that Trump’s growth-friendly policies have a better chance of getting enacted with Republicans controlling Congress, adds David Rosenberg, chief strategist at Gluskin Sheff.
“The rally could represent investors taking a breadth andÂ looking at these potential positives in terms of seeing government actually move economic policy forward,” Rosenberg told clients in a report.
Japanâs Nikkei 225 index surged 6.7% to finish at 17,344.42, while Hong Kongâs Hang Seng index rose 1.9%. The Shanghai composite index added 1.4% to close atÂ 3,171.28.
Major European stock markets gave up early gains and were lower as Germany’s DAX index was down 0.4% and France’s CAC 40 dropped 0.5%.
Stocks jumped on Wall Street on Wednesday as the major indexesÂ pared steep losses after volatile trading overnight ahead of Trumpâs victory.Â Trumpâs pledge to unify a deeply divided nation in his victory speech early Wednesday helped calm jitters in global financial markets.
âThe stunning turn in sentiment suggests there is now a consensus building that much of the policy announced during the campaign was a sales pitch rather than a commitment to act,â said Michael McCarthy, chief strategist at CMC Markets.
âInvestors ignored the potential for damage to international trade and growth prospects and focused on Republican control of both houses of Congress as well as the White House. This offers the prospect of reform that could stimulate the U.S. economy,â he added.
Investors hope Trump’s plans for infrastructure spending, tax cuts and lighter regulation will benefit the U.S. economy. TheyÂ had worried because his campaign promises carried few policy details.
Contributing: Associated Press