The Dow Jones Industrial Average saw its biggest five-day gain since in five years this week after a Trump victory sent banking and pharmaceutical stocks into rally mode. Investors bet big on the two sectors on prospects of reduced regulations from a Trump Administration.
The Dow rose 5.36% over the past week, its biggest gain since early December 2011. The Dow closed at a new record high on Thursday, and again on Friday. The S&P 500 increased 3.8% during the week and the Nasdaq grew 3.78%.
Investors stayed busy through the week 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.
Banking stocks JPMorgan Chase (JPM) , Citigroup (C) , and Wells Fargo (WFC) ended the week sharply higher, while the Financials Select Sector SPDR ETF increased nearly 11%. Pharmaceutical stocks also jumped 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.