NEW YORK (Diya TV) — The S&P 500 climbed to all-time highs Monday, notching its first record close since August. The index has now climbed nearly three percent since the election of Donald Trump.
The Dow also hit a new high of its own, taking it closer to the 19,000 level.
After struggling out of the gates in the days after the election, the Nasdaq also rose to a record high on Monday, its first since September.
Many predicted stocks would plunge if the Republican real estate mogul were elected president, or eve crash. Initially, those predictions rang true, with overnight markets plummeting the night of the election. However, that freakout proved short-lived when stocks raced higher and higher on Election Day. Instead of focusing on fears Trump could start a trade war, investors are hoping the president-elect will unleash the U.S. economy by cutting taxes, rolling back regulation and ramping up infrastructure spending.
“The basis for the rally is optimism about reversing Obama-nomics — raising taxes and increasing regulation,” Peter Boockvar, chief market analyst at The Lindsey Group, told CNN Money.
The rush of stock purchases has helped cause bond prices to tank dramatically, in turn driving up the borrowing costs associated with mortgages. The U.S. dollar is also now sitting at a 13-year high, making products sold by companies like Nike and Apple less attractive to overseas buyers.
Pointing to the stronger dollar and rising borrowing costs, Boockvar said, “One has to wonder how long this euphoria will continue.”