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The S&P 500 closed at record highs on Friday, driven by optimism surrounding a potential second Trump administration boosting economic growth.

At 4:00 p.m. ET (2100 GMT), the S&P 500 gained 0.4% to close at a record high after briefly reaching 6,013.2. The Nasdaq 100 similarly closed at a record high, while the Dow Jones rose by 259 points (0.6%), also achieving a record after an intraday high of 44,157.29.

Stocks made significant gains for the week, with some Wall Street analysts predicting further increases ahead.

According to BofA strategists led by Michael Hartnett, the period from the US election to Inauguration Day is a “risk-on window of opportunity” for US stocks. Hartnett recommends that investors focus on sectors likely to benefit from potential Trump-era policies, such as financials, REITs, and small caps, particularly those less vulnerable to long-duration debt risks.

Consumer Sentiment Hits Highest Level Since April

The University of Michigan's Consumer Sentiment index rose to 73 in November, up from 70.5 the previous month and surpassing economists' expectations of 71. This marks the highest level since April as consumers express increased optimism regarding the economy and improvements in personal finances.

Fed Continues to Lean Toward Easing

The Federal Reserve cut its benchmark rate by 25 basis points to a range of 4.5% to 4.75% on Thursday, as widely anticipated. Following the announcement, Fed Chairman Jerome Powell indicated that recent strong economic data, including a slightly higher September inflation report, would not affect the Fed's plans to continue lowering rates.

UBS noted that nothing from the press conference contradicted the notion that the FOMC remains on track to lower rates, possibly at the next meeting in December. Traders are pricing in a 76.1% chance of another 25 basis point rate cut next month, with a 23.9% chance that rates will remain unchanged according to CME Fedwatch.

Tesla Value Hits $1 Trillion; Trump Media & Technology Jumps; Airbnb Slides on Mixed Quarterly Results

Tesla Inc (NASDAQ: TSLA) surged more than 8%, boosting its market capitalization above $1 trillion following the election. Conversely, Airbnb Inc (NASDAQ: ABNB) fell over 8% after reporting mixed quarterly results that fell short of analyst expectations. Trump Media & Technology Group Corp (NASDAQ: DJT) jumped 15% after President-elect Donald Trump confirmed he has no plans to sell stock in the social media platform.