The Dow Jones Industrial Average surpassed 44,000 for the first time on November 8, 2024, with a gain of 244 points, or 0.6%, closing at 43,974. The S&P 500 also increased by 0.4%, reaching 5,995. This upward trend is attributed to a sweeping victory for Donald Trump, which has fueled optimism about a business-friendly agenda and anticipated interest rate cuts by the Federal Reserve.
The Federal Reserve's recent decision to reduce the benchmark interest rate by 25 basis points contributed to the positive market sentiment. Comments from Fed Chair Jerome Powell indicated that the election outcome would not have an immediate impact on monetary policy, alleviating concerns regarding inflation and public debt related to Trump's proposed spending plans.
In related market activity, the small-cap Russell 2000 index rose by 0.2%, also on track for its best week since last November. However, shares of Nvidia dipped by 0.5% after achieving a historic market value of $3.6 trillion, while Airbnb and Pinterest faced declines of 7.8% and 13.7%, respectively, following disappointing earnings reports. US-listed Chinese companies, including JD.com and Alibaba, also experienced losses as investor confidence waned.
In Nigeria, significant tax reforms are underway, aimed at doubling government revenue as a percentage of gross domestic product within the next two to three years. Taiwo Oyedele, head of the government's tax reform committee, announced that the reforms would increase revenue from 9% to 18%, addressing the country's growing deficit and rising borrowing costs.