Wall Street ran at two speeds on Thursday with the Dow Jones Industrial Average remaining higher and the S&P 500 and Nasdaq plummeting into the red.

The S&P 500 slipped 0.34%, the Dow added 0.4%, and the Nasdaq fell 1.7%.

Markets appeared to deflate after Wednesday's rally, trading erratically as investors assessed the types of policies president-elect Donald Trump could enact. 

Trump won the Electoral College on Tuesday evening but fell short of the popular vote. Markets had priced in a victory for Democratic candidate Hillary Clinton, a result which would have carried less uncertainty over the types of policies she would implement.

"Our bottom line is that the equity rally from the overnight lows was largely anchored on the fact that the 2016 election actually played out according to historical norms," said Nicholas Colas, chief market strategist at Convergex. "Americans voted, a clear winner emerged and his party converged around him, the loser conceded, and the sitting president gave the customary unity speech. That such a dramatic and divisive election was settled in such a prosaic way was very good news indeed. As for the coming days, we see equities continuing to move higher."

A selloff in tech stocks pulled the Nasdaq sharply lower. Industry leaders including Amazon (AMZN) , Apple (AAPL) , Alphabet (GOOGL)  and Microsoft (MSFT) were all deep in the red, while the Technology SPDR ETF (XLK) fell 2.5%. 

Pharmaceutical stocks were in rally mode after Democrats failed to secure the presidency and Republicans maintained control of the House and Senate. Democrats would likely have reined in rampant price gouging from pharmaceutical companies. Merck (MRK) , Pfizer (PFE) and Sanofi (SNY) moved higher.

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