Wall Street ran at two speeds on Thursday as a rally in financials sent the Dow Jones Industrial Average to close at records, while a selloff in tech sank the Nasdaq.
The S&P 500 added 0.20%, the Dow rose 1.17% to a new record of 18,807, and the Nasdaq fell 0.81%. The Nasdaq had fallen more than 1% at its session low.
Investors stayed busy on Thursday trying to gauge 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.
Financials benefited from a post-election rally as investors bet on reduced regulatory hurdles for the sector. Trump advisors are also reportedly considering naming JPMorgan Chase (JPM) CEO Jamie Dimon as the administration's Treasury secretary. JPMorgan, Wells Fargo (WFC) , Citigroup (C) , Bank of America (BAC) , and HSBC (HSBC) were all higher.
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.