On Thursday, the S&P 500 and Nasdaq both continued their upward trend, buoyed by positive sentiment following President-elect Donald Trump’s win and the Federal Reserve’s latest rate cut. The S&P 500 rose 0.74% to a record close of 5,973.10, while the Nasdaq climbed 1.51% to reach 19,269.46. The Dow Jones Industrial Average remained mostly unchanged, slipping less than one point to close at 43,729.34. This rally follows Wednesday’s gains, which included a notable 1,500-point surge in the Dow and a 2.53% jump in the S&P 500, marking the best post-election day in history for the index.

The bond market saw increased volatility, with Treasury yields dropping on Thursday following a previous spike. The Federal Reserve cut interest rates by 0.25 percentage points, a move that aligns with market expectations but falls short of September’s half-point reduction. Fed Chair Jerome Powell expressed optimism about the economy, indicating the Fed is likely to maintain a gradual approach to rate changes.

Analysts view Trump’s proposed tax cuts as supportive of risk assets like equities, but there are concerns about potential inflation from higher government deficits and tariffs. Market volatility is expected to persist as investors await further clarity on Trump’s economic policies.