Dow hits new record as Trump victory drives up blue chips

Breaking News November 10, 2016 22:25

NEW YORK - The Dow Jones Industrial average shot to a new record early Thursday as Donald Trump's upset US election win continued to drive strong blue chip buying on Wall Street.



Money continued to flow to sectors seen as likely to benefit from the Republican triumph on Tuesday, which is expected to block Democratic-led efforts to tighten regulations on banks and cap drug prices.

JPMorgan Chase jumped 4.7 percent and Pfizer rose 3.0 percent. Caterpillar, which is expected to prosper from ramped-up public works spending, rose 2.7 percent.

About 25 minutes into trade, the Dow was at 18,757.78, up 0.9 percent and 120 points above the all-time closing high.

The broad-based S&P 500 rose 0.7 percent to 2,177.75 while the tech-rich Nasdaq Composite Index advanced 0.7 percent to 5,287.53.

Leading US stock indices have risen four days in a row, after a nine-day slump.

Briefing.com analyst Patrick O'Hare described a "bandwagon momentum trade" that was supported in part by a shift in funds from the bond market to equities in anticipation of a large spending program under Trump.

"This morning the afterglow of Wednesday's rally, which annihilated conventional wisdom, has fostered a warm, fuzzy feeling that the equity market could be poised to enjoy a year-end rally driven by underexposed money managers playing catch-up, and the unwinding of safe-haven (and crowded) trades in the Treasury market finding a place in the stock market," O'Hare said.

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