‘The Claman Countdown’ panelists Brian Gardner and Art Hogan unpack the economic outlook for 2024.
The red wave that catapulted President-elect Trump to a second term created a green money wave for U.S. investors.
The Dow Jones Industrial Average and the S&P 500 notched fresh record highs Friday and closed out the best week of the year, rising 4.7% and 4.6%, respectively. The Nasdaq Composite hit its 31st record close of 2024, rising 5.7% for the week.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 43988.99 | +259.65 | +0.59% |
| SP500 | S&P 500 | 5995.54 | +22.44 | +0.38% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19286.776974 | +17.32 | +0.09% |
“Contrary to popular belief, under a Republican president, you really don’t want gridlock. You don’t want a split Congress because the best returns since World War II have come under a red wave when the president and both houses of Congress were controlled by the Republicans,” CFRA Chief Investment Strategist Sam Stovall said during an appearance on “Making Money with Charles Payne.”
“In that case, the market was higher by an average of 13% per year, rising 75% of the time. So, the scenario we have right now is the best for a Republican president.”
Republicans took control of the Senate this week. As of Friday evening, Republicans are leading in races to control the House.
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Stovall also noted that small cap stocks, which generate most of their revenue/profit domestically, rise an average of 14% annually in a red wave.
Former President Trump, the Republican presidential candidate, gestures during a campaign rally at PPG Paints Arena in Pittsburgh Nov. 4, 2024. (Charly Triballeau/AFP via Getty Images / Getty Images)
Trump won both the popular and the electoral vote, defeating Vice President Kamala Harris and cementing the 45th president as the 47th come January 2025.
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“Nothing will stop me from keeping my word to you, the people. We will make America safe, strong, prosperous, powerful and free again. And I’m asking every citizen all across our land to join me in this noble and righteous endeavor,” Trump told supporters early Wednesday morning.
Dow Jones Industrial Average
During his remarks, stock futures spiked and continued rallying throughout the week. The Dow soared an unprecedented 1,500 points Wednesday, touching 44,000 later in the week for the first time.
“This is what lower regulation and lower taxes look like,” Great Hill Capital Chairman Thomas Hayes said during an appearance on “Varney & Co.” Wednesday.
Trump has promised to cut regulatory…
Read More: Trump’s win sends stock investors into a buying frenzy