Trump's Win Sends Wall Street To Record Highs; Small Caps, Tesla Outperform, Fed Cuts Interest Rates: This Week In The Market

Donald Trump‘s election as the 47th president of the United States sent Wall Street into a frenzy, driving major stock indexes to once again break record highs.

Investors are betting that Trump’s potential policies, such as lower corporate and individual taxes, coupled with deregulation in the financial sector, will spur growth for corporate America. They may be underestimating the impact of higher deficits and tariffs on inflation.

Among mega-cap companies, Tesla Inc. (NASDAQ:TSLA) stood out, soaring about 30% this week, which significantly boosted Elon Musk's wealth in the wake of Trump's victory.

Small- and mid-sized stocks outperformed large caps, driven by expectations that trade restrictions could favor domestic businesses over global corporations. The Russell 2000 index, as tracked by the ...