The Dow Jones Industrial Average rose to an all-time high as U.S. stocks added to a rally sparked by speculation Donald Trump’s policies will benefit businesses, with banks surging to the highest level since May 2008.
The Dow rose 163.30 points, or 0.9 percent, to 18,752.99 at 9:45 a.m. in New York, taking it above its Aug. 15 record. The S&P 500 Index advanced 0.9 percent to 2,181.50, within 0.4 percent of a record.
Banks surged 3.7 percent pushing the two-day advance to 8 percent. JPMorgan Chase & Co. jumped 4.9 percent, while Goldman Sachs Group Inc. climbed 2.9 percent. Drugmakers advanced, led by Pfizer Inc.’s 3.1 percent rally. Industrial shares rose 1.6 percent, with Boeing Co. adding 2.7 percent.
The three industries have paced the rally since Trump’s surprise win on Tuesday, surging on expectations that the president-elect and Republican-controlled Congress will roll back regulations and boost infrastructure spending. Trump’s promise to revive American infrastructure means commodities used to build everything from airports to bridges will benefit under his presidency, according to Goldman Sachs Group Inc.
“It’s a relief rally over the certainty of the outcome of the election and after the conciliatory tone that Trump took,” said Nick Skiming, a fund manager at Jersey, Channel Islands-based Ashburton Ltd. His firm oversees $10 billion. “There’s hope that a new president can introduce reforms that will enable corporate America to move forward.”